G. Georgiou: Cyprus’ malls have been growing significantly in recent years

Cyprus’ shopping malls have been recording significant growth in recent years, according to Nicosia Mall’s General Manager George Georgiou, and this is down to the fact that they offer a safe and protected space for people to cover almost all their needs.

In an interview with InBusinessNews as part of its “IN Business Forecasting 2024” series, Georgiou said the aim for the new year is to continue to boost Nicosia Mall’s tenancy mix and improve the services it offers, adding that it is expecting four new arrivals at the mall in the first half of 2024.

How do you see the economic environment shaping up in 2024, in light of inflationary pressures, high interest rates and unpredictable ever-changing geopolitical developments?

It is true that the main challenges we faced over the previous couple of years, i.e. high inflation and a serious increase in borrowing costs, will continue to negatively impact, not just the Cyprus economy but also all the EU member states’ economies.

But I remain optimistic as the first sings of a de-escalation of inflation are now evident, while I also believe that interest rates will gradually start to drop in the Eurozone during the second half of 2024.

As such, I believe that for the majority of European countries, 2024 may be a year of waiting, but with a positive outlook.

What do you consider to be the biggest and most difficult challenges that the Cypriot economy will have to face?

There are certainly short-term as well as long-term challenges, for which, the ones we have control over we need to take corrective measures, while those we can’t control we must at least be managed correctly. The most important are the following:

• High borrowing costs, which will inevitably slow down the economy and may even burden the banks’ balance sheets, as there is a risk of a significant increase in non-performing loans.
• High energy costs, which beyond the obvious negative impact on the economy may also make us less competitive.
• The scourge of bureaucracy, which despite the governments’ repeated promises is still one of the biggest obstacles to the Cyprus economy’s growth.
• The particularly high cost of the green transition
• The continuous increase of the state payroll and subsequent widening of the wage gap between private and public sector employees.

Would you say that, taking into account the latest upgrades, the economy of Cyprus is now well on its way to growth?

The latest upgrades will certainly have a positive impact. They are not enough by themselves however.

There are many steps that we need to take, such as reduce bureaucracy, digitise all the state services, attract foreign investments, approve the development budgets and contain fixed state expenditure, i.e. the state payroll, etc.

How do you believe the industry you are active in will fare in 2024?

It is a fact that our industry has been presenting significant growth rates in recent years.

This is mainly due to the fact that shopping malls provide a safe and protected, from environmental conditions, space where consumers can fully or at least to a great extent, cover all their needs.

What are your organisation's plans/strategy for 2024? Should we expect new products/services/developments and your further establishment in the market? Will it be a year of growth/expansion or maintaining your existing market position? Can you tell us about any of your plans in particular?

In its five years of operation, Nicosia Mall has managed to become a leader in its industry, ranking first in almost all the comparative indices.

Among other, Nicosia Mall has the highest number of visitors, the strongest annual turnover and biggest number shops.

Our goal for the new year is to continue to boost our tenancy mix and our services, always to the benefit of our customers.

I will just mention that in the first half of 2024, there will be four new arrivals at Nicosia Mall, which I expect will have a positive impact on the whole of Nicosia Mall.

Finally, I would like to mention the very important fact that Nicosia Mall has succeeded in issuing its final approval certificate, which confirms our continued commitment to ensuring the safety and health of both our customers and all employees.