Cypriot property market resilient and on the brink of a "golden" era, say experts

Industry professionals anticipate the continuation of a positive trajectory and further growth in the real estate sector, describing the Cypriot property market as resilient and on the brink of a "golden era".

The real estate market is shaped by multiple factors, requiring businesses and investors to adapt and seize emerging opportunities.

The 19th Property Development & Construction Conference and Exhibition hosted a round-table discussion titled "Cyprus Real Estate 2025 – How are values fluctuating and Expectations for the Future?", featuring top industry professionals.

The discussion focused on the market's resilience, analysing key factors affecting demand in Cyprus’ real estate sector. Experts examined investment trends, the evolving needs of international investors and companies relocating to Cyprus, and strategies for adapting to economic shifts while ensuring sustainable growth.

Market stability, but older buildings left behind

Kikis Athinodorou, MRICS, Director of Kikis Athinodorou & Associates LLC, said the market is at a solid level, demonstrating significant stability. However, he highlighted concerns over a 5% capitalisation issue among buyers, as older buildings are often neglected and left unsold.

According to Athinodorou, investors analysing this 5% factor must consider that buildings require maintenance, care, and financial investment. Proper budgeting for upkeep every few years is essential. "It’s not just about student apartments. We need to be more open-minded," he added, referring to one of the major trends shaping the sector.

Speed and flexibility needed in decision-making

Markos Christodoulou, Managing Director of IKIA RESIDENCE, highlighted the presence of major development projects but stressed the need for caution among all stakeholders to avoid potential issues, particularly regarding permanent residency permits.

He noted that investment applications linked to the permanent residency program surged between 2012 and 2015 but have since declined, with increasing negative commentary on the matter.

"Political forces must address this collectively," he emphasised, adding that Cyprus has the flexibility to make swift decisions, which enhances its appeal for attracting foreign companies. As an example, he pointed out that Malta exhibits stronger political cooperation, a model that could also benefit Cyprus.

The market’s upward trend will continue

Georgios Chrysochos, Director of Cyfield Group, analysed real estate demand, distinguishing between local and foreign buyers. For locals, economic stability and interest rates play a crucial role, with both currently at favourable levels. For foreign investors, demand remains steady.

Regarding availability and workforce, he pointed out that supply has not increased enough to meet demand, predicting that the real estate market’s upward trajectory will continue.

"It's not all black and white; many contracts have been terminated due to contractors' faults," Chrysochos stated in response to a question about delays in public project contracts caused by contractors.

However, he stressed that the public sector should not always blame contractors for delays, as such issues occur in all projects. He also highlighted concerns about the independence of engineers overseeing public works:
"An engineer should be independent, but one employed by the Public Works Department cannot truly be impartial."

A "golden era" for the real estate market

Petros Lazarou, CEO of G&P Lazarou Estate Agents Ltd, predicted a "golden era" for the real estate market, emphasising that Cyprus is emerging as an energy hub.

With the EU shifting away from Russian natural gas supplies, maritime zones are gaining strategic importance.

At the same time, he highlighted that Cyprus has overcome challenging periods, with development companies adapting to market changes. He also pointed out that major properties previously tied to non-performing loans (NPLs) are now in the hands of strong corporations, which are gradually reintegrating them into the market.

Positive trends in Larnaca driven by banking facilities

Panikos Livadhiotis, Managing Director at L. Livadhiotis & Sons Property Developers, stated that real estate trends in Larnaca are positive, largely due to banking facilities.

"Both developers and clients are proceeding without relying on financing, which is a sustainable and healthy approach for both sides," he noted.

He also highlighted the importance of adopting modern tools, such as artificial intelligence, to enhance communication and achieve better results. Additionally, he observed a decline in high-rise buildings, as smaller structures are easier to manage and oversee.

Globalisation of the Real Estate Market

Pantelis Leptos, Co-President of Leptos Group of Companies, stated that the pandemic accelerated the globalisation of the real estate market, leading to comparable property prices across different countries.

He also highlighted that remote work has reshaped professional needs, making Cyprus an attractive destination for digital nomads and remote workers.

Regarding GDP growth, he estimated that Cyprus, currently at €35 billion, could reach €50 billion—provided that the country focuses on sustainable development, improved global connectivity, banking system flexibility, reduced bureaucracy, talent attraction, and digital transformation.

The discussion was moderated by Yiannis Misirlis, President of the Cyprus Property Developers Association.