25.01.2023
Makronisos CEO Marina & Caramondani group Stavros Caramontanis says that high interest rates combined with rising inflation have caused stagnation and uncertainty among potential investors, no matter how small or large, indicating a passive attitude on their part.
In an interview with Mr. Caramontanis estimates that the slowdown in land development will undoubtedly lead to a reduction in the supply of real estate and at the same time to increased demand, which in turn will lead to pressure on rents and on consumers.
Speaking of tourism, Stavros Karamontanis emphasizes that the opening of new markets and the strengthening of already important markets for the Cypriot tourism product should be taken for granted if and as long as we want to improve last year’s performance and compensate for the loss of tourist arrivals from Russia and Ukraine.
As for Aya Napa Marina , he points out that 2023 will be another important year and a continuation of the previous ones, since in addition to continuing the delivery of villas, the delivery of the East Tower is also scheduled for early dates. Also, as he notes, the Ayia commercial area Napa Marina will be working with even more entertainment options.
What will 2023 be like for the Cypriot economy?
Based on available data and projections for the next year, the effects of the Russian-Ukrainian war on economic activity in 2023 are expected to be even more intense at the global level.
In my personal opinion, happiness is not expected in the war, the conflict will continue for many months … and maybe years. Therefore, the persistence of uncertainty at the international level will be intense. As you know, uncertainty is the lifeblood of the ongoing economic crisis, at least in the psychological part with strong blows to the national economy.
The revision of views on the external environment, combined with turmoil in international energy markets, undoubtedly had a negative impact on the consumer and business climate. As a result, the eurozone economy is expected to stagnate, which will also affect the domestic market. It is expected that Cyprus, and therefore its economy, based on today’s data and forecasts, will be affected to a lesser extent than originally thought.
At the same time, it is important to emphasize that high inflation, combined with higher bank interest rates, will put pressure on the economy, the population, and covering basic needs, while reducing liquidity.
In addition, we must not forget that this is the year of the presidential elections in the Republic of Cyprus, which may still cause some unrest. Based on the program statements of the candidates, I declare that one particular faction cannot ensure the smooth running and progress of the domestic economy, while the other two present an equally competitive plan and program.
In addition, with negative (from the point of view of our country’s interests) developments in the results of the election campaign, both in Greece and in Turkey, we may witness a combination of “Perfect Storm” in our government, which will not be able to quickly, flexibly and effectively cope with situations. And there I believe that the classic “Find the Guilty” games will begin, with all the consequences that have been observed from time to time.
Real estate market: investment stagnation
What are your forecasts for the land management and real estate sector in 2023?
In addition to what I mentioned above, the implications will definitely extend to the real estate and land management sectors. Although prices for building materials show relative stabilization, they are still at a high level.
High interest rates combined with rising inflation have certainly caused stagnation, and one can sense uncertainty among potential investors, no matter how small or large. Therefore, there is a passive attitude on their part. This is facilitated by the lack of incentives on the part of the state, which I pointed out a long time ago.
A slowdown in land development will undoubtedly lead to a reduction in the supply of real estate and a simultaneous increase in demand, which in turn will put pressure on rents and at the same time on consumers.
Ayia Napa Marina
What did Aya look like? Napa Marina in 2022 and what are your predictions for 2023?
2022 has been an important year for Ayia Napa Marina . Starting with the opening ceremony in June 2022, which marked the beginning of a new and promising era with lots of fun and entertainment. Delivery of important buildings of the project, such as Event Center , as well as the completion of the East Tower, should be considered important, while the completion of the residences also began with a focus on the seaside villas of Ayia Napa Marina .
At the same time, in May, the first cruise ship anchored at the anchorage of the port, and two more in September and October. In May 2022 we received the Blue Flag, another important award for Ayia Napa Marina .
Also, 2022 brought a number of awards and certificates reflecting the overall work of the company’s employees. Great place to work, Silver Award in Cyprus Wedding Awards , two awards for Luxury lifestyle Awards 2022 and L’Atelier award Robuchon on Golden Hats .
2023 will undoubtedly be another important year for us and a continuation of the previous ones, as in addition to continuing the transfer of villas, the transfer of the East Tower is also scheduled for early spring 2023.
The East Tower is the only revolving building in Cyprus and also the tallest in the free Famagusta . Also Ayia commercial area Napa Marina will be working with even more entertainment options.
We enter the new year with even greater motivation, will and lofty goals!
Need to address new tourism markets
What important trends and developments in your industry should be on the lookout for in 2023?
Events related to the Russian-Ukrainian war and at the same time its consequences will certainly put significant pressure on both the domestic economy and the eurozone.
Building material prices are clearly a thorn in the side of planning. At the same time, rising energy prices and their possible increase in the future will certainly create pressure on sector organizations to draw up a contingency plan.
At the same time, the introduction of technology into our daily lives and the intensification of its use should now be taken for granted, as it offers significant benefits, especially in the areas of real estate sales and land management.
In terms of tourism, the opening of new markets and the strengthening of already important markets for the Cypriot tourism product should be taken for granted if and as long as we want to improve on last year’s performance and compensate for the loss of tourists from Russia and Ukraine.
What can we expect from your company in 2023? What are your goals?
We are all in Ayia Napa Marina , management and staff continue to look to the future with particular optimism. Guided by the completion of the project and the vision of its investors, we will continue to work vigorously and consistently towards the completion of a symbolic project that will change the history of the Free Province of Famagusta .
Our goals are, without a doubt, to provide quality services and homes in a unique and idyllic location, combined with a more functional, thoughtful and, above all, safe environment.
The handover of the East Tower in early spring 2023 is certainly an important moment for all employees of the company, but especially for the residents of the East Tower.
At the same time, the enrichment of the commercial area with additional entertainment will give even more motivation and interest, increasing the number of visitors both domestically and from abroad.
In conclusion, we are sure that the arrival of cruise ships will also increase through the anchorage, which in turn will promote both Ayia Napa Marina , and the whole province, as well as Cyprus.
