Cyprus must continue attracting foreign investment and companies relocating from abroad, while ensuring local residents are not priced out of the housing market, according to speakers at the Nicosia Economic Congress held on Wednesday at The Landmark Hotel in Nicosia.
Interior Minister Constantinos Ioannou joined Christiana Rotou of ROTOS Group and Demetris Tsiakkis of Themis Portfolio Management to discuss the future of the property and construction sectors. The panel focused on key issues including global uncertainty, infrastructure gaps, bureaucracy, energy costs and the need for reforms.
All speakers agreed that Cyprus remains an appealing destination for international investors and businesses, but said better planning and faster procedures are needed to make the most of this opportunity.
Foreign investment remains strong despite uncertainty
According to Demetris Tsiakkis, tensions in the Middle East have caused some investors to delay decisions, particularly in real estate. However, he expects demand to recover once the situation improves.
He said Cyprus continues to attract interest because of its location, EU membership and reputation as a safe place to live and do business.
Tsiakkis explained that foreign investment and business relocation are important for economic growth and job creation, but warned that rising demand for property could put pressure on local buyers if not properly managed.
He stressed that growth should benefit the wider economy, rather than simply pushing property prices higher.
Better infrastructure planning needed
Christiana Rotou said Cyprus has strong potential to attract companies and investors, especially from regions facing instability. However, she warned that development often moves forward before the necessary infrastructure is in place.
She said proper planning is needed to ensure there are enough homes, offices and transport options to support growth. Without this, cities risk becoming less functional and less attractive.
Rotou also highlighted ongoing challenges such as slow administrative procedures and a shortage of skilled workers. She added that more attention should be given to renovating older buildings, not only constructing new ones, as this could help increase supply and improve city centres.
Reforms aim to speed up licensing procedures
Interior Minister Constantinos Ioannou outlined reforms designed to improve the investment environment and reduce delays.
A key change is the fast-track licensing process, which now allows permits for houses to be issued within 40 working days. So far, more than 2,100 housing permits and 660 permits for small apartment buildings have been granted through the faster system, compared with waiting times of more than a year previously.
Changes to local government structures have also reduced the number of licensing authorities from 46 to five, with the aim of improving efficiency.
The Business Facilitation Unit is supporting large investment projects worth over €20 million or those creating more than 75 jobs, helping companies obtain approvals within a set timeframe.
Plans are also underway to digitise many Land Registry procedures to reduce paperwork and speed up processes.
Labour shortages and energy costs remain concerns
Industry representatives said bureaucracy remains one of the biggest obstacles to development, as administrative procedures often move more slowly than the private sector.
A lack of skilled workers is also becoming a serious issue for construction companies, making it harder for projects to move forward quickly.
Energy costs were identified as another challenge, as changes in the electricity market can affect the financial return of renewable energy investments.
Student housing offers economic opportunity
Student accommodation was highlighted as an important growth area, as international students contribute significantly to the local economy through rent and daily spending.
Rotou welcomed government measures to support the construction and renovation of student housing, but said policies should apply fairly across the sector so that existing investors are not placed at a disadvantage.
She noted that each international student contributes around €120,000 to the economy over four years, demonstrating the long-term value of the education sector.
Overall, the discussion showed that Cyprus’ property sector continues to attract strong interest from abroad, but must address issues such as infrastructure, skilled labour shortages, bureaucracy and energy costs.
While the government says reforms are already producing results, industry leaders believe further improvements are needed to ensure development supports both economic growth and quality of life.
