George Leptos: Improving infrastructure is essential to making Cyprus more attractive

The dynamics of its innovative and quality projects, its international strategy and its extremely experienced team were the main reasons why the Leptos Group of Companies managed to maintain its leading position in 2024, according to the Group's Co-President, George Leptos.

In an interview in the February issue of IN Business magazine, which was given in the context of the meeting of Cypriot business leaders with the House President and President of DISY, Annita Demetriou, Leptos analyses the Group's development plans for 2025, while explaining what allows it to absorb market fluctuations and capitalise on new opportunities that arise.

This, as George Leptos indicates,is the diversity that emerges through the Group's successful activity, beyond the real estate sector, in the tourism, education and health sectors.

Regarding the main challenges facing the real estate sector, the Co-President of the Group refers to the delay observed in the licensing of major projects, as well as the lack of personnel in almost all categories.

"A similar problem of staff shortage," he emphasises, "is also present in the health sector, where the state should allow the employment of non-Greek-speaking medical personnel, who could serve only foreign patients."

2024 was the year in which the Cypriot economy recorded strong growth and returned to investment grade after many years. What are your suggestions and recommendations for continuing this course and for further development, both of the economy and entrepreneurship?

2024 was indeed a milestone year for the Cypriot economy with the return to investment grade after many years.

As the Leptos Group of Companies, we have managed to maintain our leading position by relying on the momentum of our innovative and quality projects, our international strategy and our strong and extremely experienced team.

To maintain the positive course of the Cypriot economy, it is important to focus on strategic areas such as investments in infrastructure and technology and on preparing the workforce to meet rapidly growing and diversifying market demands, e.g. due to artificial intelligence.

At the same time, among other things, the reduction of energy costs should be accelerated, bureaucracy should be reduced, the productivity of the broader public sector should be strengthened, in relation to its increasing costs, and tax reform should be carried out.

Also, cooperations between the public and private sectors will contribute to the exploitation of new opportunities and the further development of the economy.

Absorbing market fluctuations

What are the biggest problems/challenges facing Cypriot business today, as well as the sector in which you operate, and what great opportunities do you see in the new year? What are the priorities on your agenda for 2025?

2025 will be a year of global geopolitical and corresponding economic changes, however, we are optimistic that Cyprus will consolidate its position as a regional centre of entrepreneurship, but also as a safe destination for businesses and families.

We are already seeing strong demand from IT companies moving to Cyprus where they are settling and actively operating on the island. The fact remains that things have changed.

Due to the increasingly unpredictable international environment, governments and the business community must be cautious, as no one can now predict even short-term developments.

Our Group operates in two countries, Greece and Cyprus, and covers four different sectors.

In addition to the real estate sector, the Group is also successfully active in the tourism, education and healthcare sectors. This diversity allows us to absorb market fluctuations and capitalise on new opportunities that arise.

Mature, high-quality and aesthetic works

As Leptos Group, responding to the demands of the international market, we are well prepared with mature, high-quality and aesthetic projects, such as the successful Limassol Blu Marine where the construction of the third Tower (Zeus) has also begun, Limassol Del Mar, Limassol Park, Venus Gardens in Paphos, Coral Seas Villas, Armonia Beach Villas, our emblematic Kamares Village project, as well as in Greece with Aphrodite Beachfront, Paros Gardens and Leptos Santorini Villas and many more.

At the same time, the planning of the Group's very large and complex projects, Neapolis in Paphos and Costa Nopia in Crete, is progressing, as well as the design of other new projects.

In this context, in parallel with new development projects, we are continuing to upgrade our hotels and plan expansions by securing approval of the necessary permits.

We have also expanded the facilities of Neapolis University and in 2025 the construction of a school within the Neapolis project will begin, while the expansion of our University's international collaborations with renowned educational institutions continues.

Our Iasis Hospital has been further upgraded with the significant expansion of its facilities and services provided.

Along with the implementation of our development plans for 2025, there is also the continuous training and general upgrading of our staff to cope with new challenges and competition.

The main challenges facing the real estate sector are the delays observed in the licensing of large projects, as well as the lack of personnel in almost all categories.

A similar problem of staff shortage is also present in the health sector, where the state should allow the employment of non-Greek-speaking medical staff, who could serve only foreign patients.

How Cyprus will become one of the most attractive destinations

Based on Vision 2035, what policies do you believe could make Cyprus an even more attractive destination for foreign investment? What needs to be done to transform the country into a modern international business centre and an ideal place to live, work and do business in?

The general strengthening and improvement of the infrastructure and services necessary for foreigners (e.g. foreign language schools) and the further simplification of business establishment procedures are essential elements in the effort to make Cyprus one of the most attractive destinations.

International trends and our country's advantages favour the country's development as a centre for digital nomads and multinational companies in general.

The state should support entrepreneurship

What would you ask the Cypriot state (state, government, Parliament and political parties) to do in order to support business activity on our island? In what ways do you believe the state should come to the aid of business?

Governments and the state in general must support entrepreneurship through an approach that encourages collaboration, innovation, and productivity.

In addition to the above, providing tax incentives for strategic investments, expanding digital infrastructure and developing specialised training programmes for personnel are vital.

Our economy depends largely on exogenous factors and the import of foreign exchange, such as tourism, the establishment of foreign companies and their personnel, the provision of services to international companies, the purchase of real estate, etc.

Because some of these pillars are vulnerable to international developments, we need to strengthen and expand other less vulnerable, but promising sectors such as "educational tourism" (Universities) and "medical tourism".

An important incentive is the non-imposition of VAT on the construction/expansion/upgrade/purchase of facilities and equipment for universities, schools and hospitals.

At the same time, simplifying procedures in general and strengthening justice with faster decision-making and tax reform will contribute to improving the business environment, attract more international investment and create a dynamic economy.

(Source: IN Business magazine)