Despite a robust performance—with property sales increasing 13% in the first nine months of 2025—Cyprus’s real estate leaders are warning that the market must undergo a fundamental transformation to maintain its competitive edge. In the November issue of GOLD magazine, Yiannis Misirlis, Chairman of the Cyprus Property Developers Association, and Andreas Demetriades, President of the Association of Large Investment Projects, outlined a comprehensive strategy focused on sustainability, digital reform, and administrative efficiency.
Shifting Demand: The Rise of Quality and ESG
Investor confidence remains high, fueled by Cyprus’s growing status as a regional business and investment hub. However, demand is no longer just volume-driven; it is shifting decisively toward high-quality, smart, and sustainable projects.
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Modern Workspaces: High demand exists for technologically advanced offices featuring energy-efficient systems and eco-friendly materials, driven by both environmental awareness and long-term operating cost benefits.
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Lifestyle Projects: Gated communities that emphasize security, privacy, and shared amenities are growing in popularity, catering to a lifestyle-focused clientele.
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ESG Integration: Developers are increasingly adopting Environmental, Social, and Governance (ESG) standards, integrating features like photovoltaic systems, green spaces, and water management solutions.
The Roadmap for Competitiveness: Reform Priorities
To support this shift toward high-quality development, the industry leaders argue that the public sector must urgently implement reforms to create a modern and resilient built environment.
1. Administrative & Licensing Reform
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Faster Procedures: Streamlining and accelerating the notoriously slow licensing and permitting procedures is deemed essential to reduce development delays and boost overall competitiveness.
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Proposed Ministry: The establishment of a Deputy Ministry of Development & Competitiveness is proposed. This new body would centralize strategic functions, including a Unified Investor Service and a One-Stop Service for major investments, significantly simplifying bureaucracy.
2. Digital & Fiscal Transformation
A new development model is needed, centered on digital transformation and more efficient public administration. Priorities include:
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E-Governance Expansion: Broadening digital public services to simplify interactions.
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Tax Reform: Reviewing the tax system, including incentives for energy-efficient construction and green practices.
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Infrastructure: Investing in strong infrastructure, including transport, digital networks, and community services.
Leveraging Existing Strengths
Cyprus already holds several key advantages that make it an attractive destination .
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Strategic Fundamentals: A competitive tax regime, a stable legal framework, and a skilled workforce provide a solid foundation.
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New Sectors: Emerging high-value sectors such as healthcare, education, technology, and energy offer promising new avenues for real estate investment.
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Schengen Accession: The anticipated accession to the Schengen Area is expected to boost openness and investor confidence, further enhancing the island’s accessibility.
The consensus from the industry is that while private sector innovation is crucial, a strong, sustainability-focused national strategy—backed by efficient public administration—is the only way to ensure the island’s long-term economic prosperity and real estate appeal.
Source: Cyprus Property News