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‘Construction sector can support Cypriot economy in difficult times’

‘Construction sector can support Cypriot economy in difficult times’


The CEO of the Mersin Cyprus Land and Building Developers Association, Isidorou, said on Tuesday that the Cypriot construction sector can help the economy face the challenges it faces.

“Our industry is essentially Cypriot heavy industry,” Isidorou said, adding that it must once again assume the role of a pillar and help the economy overcome the difficulties and challenges that have arisen.

The general manager of the association said that we are currently experiencing a lot of uncertainty and instability both at the European and international level.

“The dramatic events that followed the Russian invasion of Ukraine seem to have had a profound effect on the national economy, and the true consequences of the war cannot be calculated until it is over,” she said.

“In such circumstances, each country must strengthen its key development pillars by turning to new areas of smart specialization,” she added.

Isidorou mentioned that the construction sector has been particularly active in Cyprus, with both local and international clients.

In addition, she noted that in 2019, the last year before the pandemic and the economic crisis caused by it, the construction sector added more than 3 billion euros to the GDP of Cyprus.

This amounted to 17 percent of Cyprus’ GDP that year, which was more than the contribution of the insurance, financial and industrial sectors combined.

“Given this volume of work, there is no need to further emphasize the contribution of the sector to the retention of employment,” said Isidorou, noting that more than 35,000 employees, most of them Cypriots, have been trained and employed in recent years in numerous projects of increased complexity and scale.

Isidoru also said the state should also get involved and praised the interest rate subsidy scheme for first-time homebuyers.

“Such actions help stimulate not only the market, but also the Cypriots themselves who want to get their first home, including young couples,” Isidorou said.

“It is important that such incentives become more permanent in how they are viewed and implemented, and also extended to other categories of property,” she added.

The association’s CEO also said that the sector’s ability to expand beyond the domestic real estate market has attracted foreign funds and international investors.

“This foreign direct investment should not only be protected, but additionally supported, especially at this time, through close cooperation between the private and public sectors,” Isidorow said.

“In recent years, the sector has achieved significant differentiation by turning to markets beyond the traditional ones, something that has already brought positive results,” she added.

Isidorou mentioned some government initiatives that have also had a positive impact, including incentives given to foreign companies to move their headquarters to Cyprus.

She noted that the success of this particular initiative could turn Cyprus into a hub that will connect companies from third countries with the European market.

“For these efforts to be successful, actions must be taken that relate both to creating a more friendly environment for foreign companies, their executives and their families, and the funding needed to build appropriate office space,” Isidoro said.

“Market data shows the need to simplify and speed up the processes for both obtaining work permits and opening a bank account for foreign employees,” she concluded.

Source and photo:, Editor

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