The evolution of Cyprus’ construction industry, from traditional craftsmen to modern project leaders, is shaping the next phase of the island’s real estate and infrastructure landscape, according to Stelios Gavriel, President of OSEOK.
Speaking at the 20th Property Development, Real Estate and Construction Conference in Nicosia, Gavriel highlighted the sector’s enduring contribution to economic growth, while warning that the coming decade will be defined by labour shortages, rising construction costs, sustainability demands and the need to rebuild trust across the industry.
Construction & contractors at heart of modern Cyprus
Gavriel emphasised that the story of Cypriot contractors is closely intertwined with the country’s modern development. From the skilled builders of the 1930s to today’s sophisticated construction firms, the industry has played a central role in shaping homes, schools, hospitals, transport networks and commercial infrastructure.
He described early craftsmen as driven by determination, technical skill and a desire to create opportunities for future generations. Many family-run firms have passed knowledge through successive generations, reinforcing the sector’s continuity and resilience.
From craftsmen to project leader
The role of the contractor has evolved significantly. Historically defined by technical expertise on site, today’s contractor operates as a business leader responsible for complex investments, multidisciplinary teams and strategic decision-making.
Modern construction professionals must combine engineering knowledge with financial management, risk assessment and regulatory compliance, working closely with architects, investors and financial institutions. Digital tools, sustainability standards and energy efficiency targets have further transformed the industry’s operational framework.
Construction: a key pillar of economic activity
The construction sector remains a major contributor to Cyprus’ GDP and employment, supporting a wide ecosystem of related industries including property developers, material suppliers, logistics providers and design professionals.
Each project generates multiplier effects across the economy, stimulating investment activity and strengthening infrastructure capacity. Beyond financial impact, large-scale developments have helped shape Cyprus’ contemporary urban identity.
Workforce pressures and rising costs
A shortage of skilled labour is emerging as one of the sector’s most pressing challenges. An ageing workforce combined with limited entry of younger professionals has intensified the need to attract talent from abroad.
At the same time, global economic uncertainty continues to influence material prices and supply chains. Key construction inputs such as aluminium and steel have experienced price volatility, while energy costs are expected to further increase pressure on project budgets over the coming years.
Contract reform and industry trust
Gavriel also called for modernised public procurement frameworks aligned with international standards, including faster dispute resolution mechanisms such as arbitration. Improved contractual structures could help minimise delays and reduce project risk in both public and private developments.
Rebuilding trust among stakeholders – contractors, engineers, investors and public authorities – will be essential to maintaining momentum in the sector.
Vision for the next generation
Looking ahead, Gavriel stressed the importance of attracting younger professionals and encouraging Cypriot construction firms to expand internationally. With the domestic market relatively small, outward-looking strategies could strengthen competitiveness and support long-term growth.
Despite ongoing challenges, the sector’s experience and adaptability position it to remain a central driver of economic development and real estate investment in Cyprus over the next decade.
