Cyprus' lengthy planning process is off-putting for foreign developers

Cyprus’ lengthy planning process is off-putting for foreign investors interested in developing real estate on the island, which is a shame given its many key advantages, John Christodoulou, Chairman and Owner of Yianis Group Ltd, told the 17th Real Estate & Construction Conference & Exhibition on Wednesday.

“There are so many applications, so many different bodies in Cyprus. It can put people off from buying land to develop. That’s why you’re finding that most people who buy in Cyprus are buying finished buildings,” Christodoulou said during a Q&A at the event, which is underway in Nicosia. “I would want developers to come here. But we’ve got to make it easier for them. Because they will find somewhere else to invest.”

He added, “We’ve got a great advantage. We’ve got similar laws to the UK. But the planning is an issue. Whoever’s got money and wants to invest it, they’ve got to feel safe.”

In his speech earlier, the Cypriot real estate magnate elaborated further on why he favoured the UK’s planning process; “purely because of the regulations, the decorum and how easy it is to get things done”.

He said: “In my experience, the UK is most effective if you want to grow fast and build quick. By having an efficient planning process with clear rules, more property investors will want to come into the country and develop. Let this be a lesson to governments that want to increase their GDP.”

Another advantage, he said, was that the UK has a balanced tenant/landlord law. “A significant investor risk for landlords is when tenants don’t pay,” Christodoulou explained. “A country with balanced landlord/tenant laws will attract much more investment in real estate. And this is what countries need to try to achieve.”

He said a lot has changed in the space of just a month, what with the collapse of another major bank, Credit Suisse. This, coupled with high interest rates, recession, war, change of government, have changed the mood and enthusiasm for everyone, he said.

Christodoulou also referred to the risky business of investing in real estate in occupied Cyprus. “I cannot understand how anyone can invest somewhere where they cannot get the title deeds. Where the seller isn’t the owner of that property.” He said he was hugely disappointed to read in the news that Israel, who he is a big fan of, was the occupied areas’ biggest investor in 2022.

John Christodoulou’s advice for developers? Build a relationship of trust with the banks. “It does not matter how big your company is; once you create trust with the banks and they know you perform regularly and on time, they will support you.” He added, “Rule number one: don’t let your banks down. Rule number two: don’t let your banks down. They are the key to your success.”

He added, “If you love what you do, do your homework, have the right team. If you have the right team and they support you, the sky’s the limit.”