Andreas Michael: What will determine the recovery of construction activity in 2024

The recovery of construction activity in Cyprus for 2024 largely depends on the stabilisation of external factors affecting the country's economy and the reduction of inflation, says the Owner and Managing Director of Cyview Developers, Andreas Michael.

In an interview with InBusinessNews, in the context of "IN Business Forecasting 2024," Michael points out that if the above is achieved, a significant recovery is foreseen in the field of construction activity, with focus on both the private and public sectors.

"Additionally," he notes "the continued rise in the number of foreign companies settling on the island through headquarters will play an important role in the development of the sector."

Referring to the problems faced by the industry, Andreas Michael warns, among other things, that the lack of skilled workforce may make it difficult to try to complete projects in a timely and qualitative manner.

Emphasising that since the birth of Cyview Developers in 2001, its primary goal has been to offer high-quality developments to the real estate market of Cyprus, the managing director of the company underlines that in 2024, 35 residential and commercial projects are under construction and completion in Latsia, Strovolos, Aglandjia, Dali and Engomi.

Also, as he indicates, 2024 marked the company's expansion to Acropolis, with its first projects in the area.

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

Economic forecasts may present encouraging scenarios, but they should not give us illusions of security.

Cyprus is in a geographically strategic position in the Eastern Mediterranean, close to areas with strong geopolitical tensions, which may at any time affect the economy, international trade relations and tourism.

The estimates of the Ministry of Finance for 2024 show a continuation of the development path, with the country's GDP increasing by approximately 3%, while unemployment and inflation show a decrease.

Future competitiveness

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

A commitment to continuous adaptation, innovation and improvement is essential to creating a resilient economic framework that will meet today's challenges.

Reducing dependence on tourism, promoting innovation and addressing environmental challenges are key steps to ensure future competitiveness.

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

International rating agencies have indeed recognised the improvement in the country's economic situation. However, real development requires continuous efforts and coordinated action by the state and the private sector.

Implementation of the reforms and investments foreseen in the National Recovery and Resilience Plan is a critical condition for success.

The need to fight bureaucracy is also important, as this can be an obstacle to the speed of economic development.

The course of the construction sector

What do you think will be the course of the sector in which you operate in 2024?

The recovery of construction activity in Cyprus for the year 2024 largely depends on the stabilisation of external factors affecting the country's economy and the reduction of inflation.

If this is achieved, a significant recovery in construction activity is forecast, focusing on both the private and public sectors.

In addition, the continued rise in the number of foreign companies settling on the island through headquarters will play an important role in the development of the sector.

This phenomenon increases demand in construction and real estate, creating business opportunities and new jobs.

However, we must also take into account the fact that the construction industry and the real estate sector have repeatedly proven to be safe and effective investments, especially in times of economic uncertainty.

If you could ask the government to take specific measures or formulate policies to support/enhance your sector, what would they be?

The first thing we would like would be the introduction policies that make it easier for businesses to operate in the construction sector, including simplifying licensing procedures and reducing red tape.

We would also suggest providing financial incentives, such as subsidies or tax incentives, for investment in construction projects that will contribute to the development of the country's infrastructure.

In addition, we recognsze the urgent need to promote sustainable construction and the use of green technologies, encouraging projects that respect the environment.

Trends and the technology factor

What are the biggest industry trends/changes you anticipate in 2024?

The increasing focus on sustainable construction and the strengthening of the use of green technologies are central aspects of strategies followed by construction companies today.

At the same time, there is an international tendency to increase research efforts for the development of new construction materials characterised by durability and sustainability.

Finally, an increased use of digital technologies is foreseen in the entire spectrum of the construction process, from the design to the execution and management of the projects.

More specifically, what role does technology, such as artificial intelligence, play and what changes is it expected to bring about in your field?

The construction sector is evolving into an environment where technology and artificial intelligence are fundamentally shaping processes, improving the performance, safety and sustainability of construction projects.

The use of technology and artificial intelligence has opened new prospects and challenges, which cover many areas of the manufacturing process.

The sector’s most significant challenges

What are the most significant problems plaguing your industry today and the solving of which you consider a priority in the new year?

Changes in legislation affecting the construction industry, such as environmental regulations and safety requirements, may force businesses to make adjustments and investments.

At the same time, the lack of skilled labour might make it difficult to try to complete projects in a timely and qualitative manner.

Addressing these challenges requires strategic approaches, such as the careful search for new sources of materials, constant investment in training and modernisation of the workforce, the application of new technologies, and close cooperation with the competent authorities in order to streamline procedures in accordance with legislative requirements.

35 residential and commercial projects underway

What are your organisation's plans/strategy for 2024? Should we expect new developments and your further consolidation in the market?

Since the birth of Cyview Developers in 2001, our primary goal, has been to offer the Cyprus real estate market high quality developments and personal, consistent customer service after the sale, making each of our projects a long term investment.

The company's portfolio includes residential and commercial developments that stand out for their functionality and energy efficiency, while our reliability and dedication to the timely delivery of projects have built relationships of trust with our partners and clients.

In 2024, 35 residential and commercial projects are under construction and completion in Latsia, Strovolos, Aglandjia, Dali and Engomi.

Also this year we expanded to Acropolis, with our first projects in the area. This was an area in which we noticed increased demand and limited supply.

Our customer-centric philosophy, the know-how of more than 20 years, the excellent service of our customers and the consistency that characterises us, determine the successful course of our company.

These are the materials that make up our character and with them we will move ahead, strengthening our commitment to turning our clients' residential dreams into reality.

(Source: InBusinessNews)