Constantinos Constanti: Optimistic prospects for the real estate sector, but concerns remain

"The forecasts and estimates for the course of the real estate sector in 2025, despite the challenges it faces, are encouraging," states the President of the Cyprus Scientific and Technical Chamber (ETEK), Constantinos Constanti, noting, however, that despite the optimistic prospects, there are several issues the Chamber remains concerned about.

In an interview with InBusinessNews, in the context of its Forecasting 2025 series, Constanti mentions one of the issues that concerns ETEK - among others – as being the effectiveness of the new Provincial Self-Governing Organisations (EOA) in terms of issuing permits, so that the construction industry operates smoothly and without any malfunction.

"We are concerned about several issues, mainly everything that concerns the quality of life of citizens, such as climate change, traffic, energy and green development issues, the effective operation of the EOAs, developments in environmentally sensitive areas, the redesign of the public works chain, etc.," adds the President of ETEK.

Referring to the goals of the ETEK for 2025, Constantinos Constanti notes that they stem from the broader philosophy and vision for a Chamber that will be even more effective and more interventionist for the benefit of the place, the citizen and society at large.

"Our goal is to upgrade the prestige of local engineers, so that they operate in a healthy working environment, promote quality and guide society in the context of the green and digital transition," he points out.

How do you think the real estate sector will perform in the new year? How optimistic are you about its prospects?

The forecasts and estimates for the course of the real estate sector in 2025, despite the challenges it faces, are encouraging.

These estimates are also reinforced by the European Commission's autumn macroeconomic forecasts, according to which the growth rate of the Cypriot economy will remain strong in 2025, reaching 2.8% compared to the 3.6% expected for the current year.

It is important to note that new developments have been planned for the new year and these projects should be put on track for implementation and not remain on paper.

Despite the optimistic outlook, there are several issues that concern us. One of them is the effectiveness of the new Provincial Self-Governing Organisations (EOA) in issuing permits, so that the construction industry operates smoothly and without any malfunctioning problems.

The recent decisions of the Ministry of Interior regarding the simplification of the development licensing process are encouraging. However, there are several problems that need to be addressed immediately if we are to look forward to more efficient licensing processes.

We are also very concerned about the issue of affordable housing. A social problem that plagues many young people, who see acquiring housing as a "dream."

What we are saying as ETEK - and we should be particularly careful - is to see how we increase our building stock, so that there is a greater number of available apartments or houses, which will help reduce the gap between supply and demand.

I would like to take this opportunity to refer to the data of the Department of Land and Surveys (January-September 2024), which show an increase in housing demand of 19.2% compared to the corresponding period last year. If this demand continues, which everything indicates it will, we will have to find solutions to meet it.

ETEK's recommendations regarding affordable housing have been set before the competent authorities and, in addition to the government measures that have been announced, within the framework of the government's housing policy, we should implement a strategic plan, which includes long-term, medium-term and short-term measures.

We, as ETEK, insist on the creation of a Central Body that will plan, coordinate and control issues related to state housing policy, as well as the imposition of disincentives.

Geopolitical developments are a risk

What do you see as the biggest risks to the country's economy? What needs to be addressed in order to ensure its growth trajectory?

Geopolitical developments pose a great risk to our country's economy, as they make the environment unstable and uncertain.

These exogenous factors have an impact on the global market, on energy prices, while greatly influencing the decisions of households and businesses.

At the same time, other serious risks are emerging that worry us, such as climate change and cyberattacks, which reinforce the uncertainty of the economic environment.

Certainly, the challenges that we must face in order to ensure the growth trajectory of the Cypriot economy are many.

Of course, there should be proper and prudent management of public finances, proper planning, implementation of development projects, improvement of our economic model to enhance the competitiveness of the Cypriot economy and implementation of specific policies for a rapid digital and green transition of the economy.

From our perspective, we believe that climate change is one of the most important challenges we are facing and it is of utmost importance that the policies implemented, as well as the new developments planned, meet the EU's strategic objectives for 2030 and 2050 for sustainable development and a climate-neutral economy.

It must be understood that climate change has very negative consequences. One of them is the water shortage that our country is facing, and it is a shame that water is being wasted because buildings are old or unsafe.

It is also extremely important to improve our existing infrastructure. For example, when it comes to water supply issues, we should ensure that we have a strategic plan for managing rainwater, so that we do not find ourselves facing unpleasant situations and phenomena like Valencia did.

The attractiveness of Cyprus for foreign investment

What should Cyprus do to become an even more attractive destination for foreign investments? And how important, in your opinion, are they for its economy?

Foreign investments are important for the development of the Cypriot economy, they contribute to public revenues, create new jobs and contribute to the transfer of knowledge and know-how.

To make Cyprus a more attractive destination, the legislative framework needs to be improved, so that it is more effective, friendlier and characterised by transparency and a reduction in bureaucracy, which often acts as a deterrent for an investor. Also, where problems are identified, there should be rapid dispute resolution procedures.

"We are concerned about several issues"

Regarding the sectors in which ETEK operates, what are your predictions for 2025? Are there any issues that concern you?

We are concerned about several issues, mainly everything that concerns the quality of life of citizens, such as climate change, traffic, energy and green development issues, the effective operation of the EOAs, developments in environmentally sensitive areas, the redesign of the public works chain, etc.

Regarding climate change, our concern as a Chamber is whether the policies implemented are aligned with the logic of creating resilient, viable and sustainable cities.

In the field of public works, we are concerned by the fact that we have not yet proceeded with the moderniσation of the entire process of implementing public works, with the result that projects that would contribute greatly to improving the quality of life of citizens are being interrupted one after another with very negative consequences.

The termination of the Paphos-Polis project affects the movement of citizens, in addition to raising security issues.

Then there is termination of the contract for the project on the Liopetriou River - a project that was supposed to be enjoyed by thousands of tourists and the local population. Not only do we not know when it will be completed, but it (the termination of the contract) also has very negative consequences for the professional fishermen and restaurateurs in the area.

If we refer to the project in Vasiliko, you understand the negative consequences it has on consumers' pockets.

The modernisation of the implementation process of public projects is a very big challenge and as a Chamber we have submitted specific suggestions such as: To include alternative dispute resolution methods in contracts, to promote the architectural competition process, to include quality criteria in contracts for designers and contractors, so that in addition to price, we can also encourage quality issues.

Another pillar on which we have focused and submitted a set of proposals is traffic, one of the most serious problems that concern society and that affects the daily life of citizens.

Tackling traffic congestion requires a plan, vision, strategy and planned implementation of measures. To date, there has not been a holistic approach to addressing the problem, but rather some individual decisions.

We have not managed to have a reliable, modern, digitalised transportation network and some actions that have been taken, such as one-way streets, do not address the problem.

We want to see a plan, with timetables in place so that citizens know that there is a plan.

The Chamber has proposed a set of proposals, some of which relate to the expansion of the Park & ​​Ride program, the encouragement of teleworking, the implementation of door to door transportation for students regarding their bus travel to and from school and to other cities, the strengthening of intercity buses, the upgrading of the bus lane network and the upgrading of public space to encourage pedestrian and cyclist movement, etc.

Finally, we are very concerned about the phenomena of building anarchy that are observed, developments in environmentally sensitive areas, dangerous buildings, the preservation of our cultural heritage and the serious bureaucratic procedures that delay - in the case of listed buildings - the issuance of permits.

Many times, even though there are generous incentives, these delays also act as a disincentive for someone who wants to restore a listed building.

A strong trend that seems to be taking hold in Cypriot business is that of acquisitions and mergers. Will we see it strongly in your sector as well?

Any mergers or acquisitions should improve the quality of life of citizens, not create oligopolies and not negatively affect healthy competition.

ETEK's planning for 2025

What do ETEK's plans for 2025 include? What will your priorities be?

Our goals for 2025 stem from our broader philosophy and vision for a Chamber that will be even more effective and more interventionist for the benefit of the country, the citizen and society at large.

Our goal is to upgrade the prestige of local engineers, so that they operate in a healthy working environment, promote quality and guide society in the context of the green and digital transition.

A high priority is the improvement of our country's infrastructure, the creation of resilient and accessible cities, green and sustainable development, and the promotion of policies that will create a culture of digitalisation.

ETEK, with the expertise of its members, as the technical advisor to the state, stands alongside the competent bodies with the aim of improving situations that constitute an obstacle to social well-being.

We need a state that will operate quickly, serve the country without bureaucracy, and be a shining example for the implementation of projects with multiplier benefits in society.

(Source: InBusinessNews)