Office rents in Cyprus, particularly in coastal Limassol , are in some cases higher than in London or Amsterdam. Major tech companies operating on the island say that the issue of office availability is becoming one of the main obstacles to further growth of the information and communications technology (ICT) sector, which has seen rapid growth in recent years.
These issues were discussed on Cyprus Forum within the framework of the session “Strengthening the Tech Island: Developing a Competitive Digital Economy for Cyprus”. Deputy Minister for Research, Innovation and Digital Policy Nikodemos Damianou emphasized that the transformation of Cyprus into a technology hub is becoming a reality. He noted that the ICT sector has shown the highest growth in the country in the last ten years , increasing by an average of 10% per year, which contributes to the diversification of the economic model of Cyprus.
Damianu also pointed out that to further strengthen the sector, it is necessary to focus on improving digital infrastructure, providing high-speed internet, developing data centers, and creating a business environment that supports innovation and start-ups . Of no small importance is the availability of a skilled workforce and a legal framework that can protect and support this growth.
Contribution of the ICT sector
Head of DEAL , a consulting company KPMG Christophoros Anagiotos noted that the contribution of ICT to the Cypriot economy was €3.3 billion, or 12% of the total Gross Domestic Product (GDP). If indirect effects are taken into account, the sector’s contribution increases to €5.6 billion. Moreover, 60% of the sector’s employees are Cypriots, which refutes the widespread belief that the majority of workers are foreigners.
Despite the impressive results, left-wing AKEL MP Aris Damianou stressed that more favourable conditions for the development of the sector were needed, including the removal of bureaucratic barriers and enforcement of laws. He described rental prices for both office and residential premises as excessively high and drew attention to infrastructure problems, including a shortage of schools for children of families moving to Cyprus.
JetBrains Director Elena Prokhaskova emphasized the importance of interaction between technology companies and universities for the development of innovations and training of new personnel. In turn, Elena Grigoryan, CEO of My Games , noted that updating the legal framework for intellectual property ( IP Box ) could attract a second wave of major IT companies to Cyprus.
Ugne Buratsiene , CEO of Payabl , also noted that office rent in Cyprus is sometimes more expensive than in London or the Netherlands, which makes it difficult for companies to develop.
Christophoros Anagiotis added that issues related to public transport, air travel and accessibility of workplaces often come up in discussions with clients.
