Landbank Group CEO Andreas Christophorides: 2025 will be a year of opportunities for the real estate sector

The CEO of Landbank Group, Andreas Christophorides, assesses that 2025 will be another year of opportunities, but also challenges, for the real estate sector, with an increase in demand for high-value properties, mainly in urban areas as well as in projects with high specifications.

In an interview with InBusinessNews, within the framework of its IN Business Forecasting 2025 series, Christophorides expressed the belief that the field of estimates and data analytics will continue to show intense activity.

And this, as he explains, is because now, investors are also looking for documented decisions based on accurate and comprehensive data, while non-professional buyers are also no longer buying blindly or without knowing all the details about the property they are interested in.

The CEO of Landbank Group expressed optimism that the real estate market in Cyprus will continue to grow in 2025, especially in sectors such as high-end residential real estate, since there is demand from foreign and domestic investors.

Additionally, according to Christophorides, demand for high-end office space will continue due to increased business activity and business interest from abroad.

Andreas Christophorides also announced important collaborations with internationally renowned organisations for the Landbank Group during the first quarter of 2025, with the aim of developing and expanding the services of the Landbank Analytics platform, both in Cyprus and abroad.

"Through these partnerships," he noted, "the platform will provide unique data and tools to its users, enhancing its value as an essential decision-making tool."

How do you think the Cypriot economy will perform in the new year? How optimistic are you about its prospects?

The Cypriot economy is showing signs of steady growth, supported by key sectors such as technology, shipping, financial services, real estate and tourism, as well as the upgraded image of Cyprus as an investment destination.

Continuous upgrades by rating agencies and positive reports from institutions such as the EU and the IMF demonstrate the positive course of the economy. The real estate sector remains important to the economy, functioning as a pillar of growth and investment activity.

I am optimistic that in 2025 the real estate market in Cyprus will continue to grow, especially in sectors such as high-end residential real estate, as there is demand from foreign and domestic investors.

Additionally, demand for high-end office space will continue due to increased business activity and business interest from abroad.

We are also gradually beginning to see the shift towards green and sustainable developments that are consistent with ESG (Environmental, Social, Governance) criteria.

The attractiveness of Cyprus as a country with a stable tax environment (tax reform is imminent in the coming months), infrastructure and strategic location, creates the conditions for further development in our sector.

Who do you see as the biggest risks to our country's economy? What should be taken into consideration in order to ensure its growth trajectory?

The greatest risks are related to:

1. The geopolitical instability in our region and its impact on foreign investment and tourism.
2. The increased cost of financing due to high interest rates (although they have begun to decline), which may slow down demand for real estate and the implementation of new projects.
3. Any further increase in construction costs if there are further delays in the supply chain.

In order to maintain the growth path of the Cypriot economy, it is necessary to promote digital solutions to simplify the processes of project licensing and issuing property titles.

Accessibility to financing must also be strengthened, with programmes that support small and large investors.

At the same time, tax and other incentives and subsidies for new developments must continue, guided by social welfare, energy efficiency and innovation.

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 sustainable and inclusive investments are a growth driver for a small economy like Cyprus. Especially in the real estate sector, the inflow of foreign capital in recent years has been crucial.

Cyprus can become an even more attractive destination for investment and international companies. We don't need to reinvent the wheel to achieve this.

We just need to do some things that we have been saying for years and that other countries have been implementing successfully for a long time, such as:

1. Simplification of procedures through reduction of bureaucracy, mainly in licensing procedures.
2. Introduction of new and targeted investment incentives such as tax breaks and special incentives for sustainable and "green" projects.
3. Promoting transparency to strengthen investor confidence through clear and transparent procedures. Unfortunately, our country suffers from a lack of trust and we hope that through the new communication campaign that the government has launched, we will manage to reverse the negative image that prevails.
4. Investing in infrastructure with the aim of upgrading transportation, and adopting digital and energy solutions that will improve the country's attractiveness.

Another year of opportunities

Regarding your company's sector of activity, how do you estimate it will develop in 2025? Are there any issues that you are concerned about?

2025 will be another year of opportunities, but also challenges for the real estate market. We expect an increase in demand for high-value properties, mainly in urban areas as well as in high-end projects.

The shift towards green and energy-efficient buildings will be strengthened due to growing environmental awareness. As for residential properties, we are likely to see a stabilisation of prices in most areas of the country.

The field of valuations and data analytics will continue to show intense activity, as investors now seek informed decisions based on accurate and comprehensive data, and non-professional buyers no longer buy blindly or without knowing all the details about the property they are interested in.

At Landbank Group, we offer a wide range of services, which are based on technological solutions and certainly on excellent personal service.

We monitor and record market trends and advise our clients, who come from all walks of life, accordingly.

Trends and challenges

What are the biggest trends/changes you expect to occur in your sector and what are the most significant challenges?

In recent years, when we talk about big trends, technology and digitalisation are at the forefront. The use of Artificial Intelligence and real estate analytics has not only revolutionised every aspect of the sector, but has also increased transparency and efficiency in the market.

At the market level, I believe that the trend towards renting will continue even if we see a stabilisation in the sale price of residential properties. As will the trend towards buying apartments instead of houses, which was strong in 2024 according to data analysed by Landbank Analytics.

The challenges include the reduced supply of real estate relative to demand, high construction costs, and the lack of specialised personnel, both on construction sites and at the scientific level.

At the same time, important challenges are also created by adapting to new rules that significantly change the way real estate is constructed compared to what we knew until now, as well as the functioning of the market in general.

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?

In such a small market as Cyprus, one would expect that the real estate sector would not have so many players. Many real estate sub-sectors have been showing strong signs of saturation for years.

Industries such as appraisals and real estate services will have to proceed slowly or (better yet) quickly with mergers and acquisitions, both to survive and to become more competitive in providing quality services and to grow.

Advanced real estate analytics services

What can we expect in terms of your organisation's plans and development strategy in 2025? What moves do you intend to make in this direction?

In 2025, the Landbank Group will continue to invest in the development of advanced real estate analytics services, transaction advisory support, technical analyses and valuations, covering all the needs of its clients, no matter how complex and demanding they may be.

Particular emphasis will be placed on strengthening our partnerships with international groups operating in Cyprus and looking for a reliable partner in the real estate sector.

It is noted that during the first quarter of 2025, the Landbank Group will announce significant collaborations with internationally renowned organisations, aiming to develop and expand the services of the Landbank Analytics platform both in Cyprus and abroad.

Through these partnerships, the platform will provide unique data and tools to its users, enhancing its value as an essential decision-making tool.

Our strategic partnership with the international firm Colliers Greece & Cyprus confirms the quality of our services, while allowing us to offer an even wider range of solutions to our clients.

Through this collaboration, we strengthen our capabilities by providing specialised services, such as international valuations, market analysis, strategic investment planning and transaction advisory support.

Our goal is to remain a market leader, offering value through innovation, reliability and customised services that meet the needs of our partners and customers.

(Source: InBusinessNews)