18.01.2024
The real estate sector has long established itself as a cornerstone of the Cyprus economy, playing a key role in its recovery and development, especially in recent years. In 2023, despite a number of challenges largely caused by external factors such as the pandemic and geopolitical events, the industry has demonstrated remarkable resilience and adaptability.
Difficulties arising from supply chain disruptions, rising inflation, rising commodity prices, and the energy crisis have been exacerbated by instability in the region, particularly the situation in Israel and Gaza. However, the Cypriot property sector has been able to adapt to these challenges, using them as opportunities for growth and development.
Preliminary forecasts for 2024 indicate continued uncertainty, mainly due to the geopolitical environment. However, expectations for the Cyprus economy remain generally positive, supporting an optimistic view of the future of the property sector. A key success factor is the supply of affordable properties, which makes Cyprus an attractive investment destination.
Particular attention is paid to the transition to “green” development through the adoption of ESG (environmental, social and governance) criteria, which will be one of the main tasks for the current year. This is not only a response to growing investor demands, but also a necessity in the context of global efforts to combat climate change. The industry is pushing for more energy-efficient buildings, while consumers are looking for highly energy-efficient properties , weighing both the short-term and long-term benefits.
Digital transformation and the use of modern technologies are another priority for adapting to modern conditions. However, given the financial constraints of households and businesses, the sector is committed to offering environmentally friendly yet affordable properties, responding to increasing demand, especially in cities such as Limassol .
The implementation of the new housing policy by the Ministry of the Interior and further efforts to improve the housing supply situation highlight the need to address rising house prices. An approach based on adaptability, evolution and meeting the needs of investors will help the industry overcome current challenges and make a significant contribution to the economic and social well-being of the country.
