29.08.2023
Mixed-use dwellings are constantly gaining popularity around the world, and more and more investors are turning to them, realizing the prospects they can create both for themselves and for the sustainability of their investments. These are complexes that combine residential or hotel facilities with other objects of use, such as shopping and business centers , restaurants, rehabilitation and health centers, sports facilities, marinas, clinics, modern hospitals, etc.
The idea of mixed development is that each part of development reinforces the others. For example, in a mixed-use development that includes a hotel, the hotel business can be combined with a unique shopping experience, wellness, artistic entertainment, etc. Studies abroad have shown that the mixed use of a hotel and a shopping center increases revenue per available room by 30-40%. compared to a simple hotel.
How are things in Cyprus?
Although the trend of mixed development is constantly increasing at the global level, it seems that there are still many steps to be taken in Cyprus before they can be used in a meaningful way. According to the “New Mixed Tourism Development Policy” published in the government’s official gazette last October, the creation of new mixed tourism facilities is not only limited, but also needs support. The current legislative and regulatory framework focuses mainly on the development of mixed tourism, essentially ignoring the importance given to mixed developments at the international level. This mainly concerns the synergy between hotels and residential buildings. However, a more extended form of mixed development, such as one that includes a hotel, hospital, shopping malls, offices and homes, can also make a much larger contribution at the local community level. In fact, according to the Law on Private Hospitals, at the moment the inclusion of a private hospital of any type in a mixed development is not allowed.
And this comes at a time when, in an economy such as Cyprus, attracting investors for mixed development can have a significant impact on a number of key sectors, especially in areas that suffer from seasonal work and dependence on tourism, such as the free territory. Famagusta , the impact could be even greater, up to a noticeable improvement in the quality of life of the local community.
At the same time, the attraction and implementation of mixed developments can significantly contribute to the further development of specialized categories of tourism and not only, such as medical tourism, education and the involvement of research and technology companies, etc. This perspective not only offers full-time employment opportunities, but also the creation of quality jobs in a range of sectors, including research positions, while encouraging young people to find work in their home region rather than move to urban centers. At the same time, the corresponding investments will help to solve the housing problem observed in other provinces, because with the appropriate infrastructure, including business facilities and housing for their employees, the province will absorb some of the companies that move to Cyprus. And the differentiation and noticeable renewal of the tourism products and services provided will naturally lead to the attraction of better tourism, which is also the keen desire of the competent authorities in recent years.
Progress has already been made in occupied Famagusta: an agreement was recently announced to establish the first new generation hotel and rehabilitation center; other agreements are expected to follow.
With regard to medical tourism, for example, market operators point out that while the need for its development has been theoretically present in programs and policies for a decade, practical barriers to its attraction make it a deterrent to participation in the industry. The strategic advantages of Cyprus are self-evident, while there are many successful examples abroad, the closest of which is Israel, which has a long tradition in providing medical services and medical technologies, while maintaining close cooperation with Cyprus, that our country could put to good use.
