"Our approach is to do things differently. To attract investments that generate solid returns for investors while also serving the needs of the local population. In the long run, we believe this will help shape a healthier, more balanced, and sustainable real estate market in Limassol," Ethan Volvovic, CEO & Founder of Limassol-based VOLCO suggests.
In an exclusive interview with CBN, he goes on to note, "All our projects focus on low-rise buildings, typically three to four stories high, with four to ten apartments per building. We believe it’s important to preserve Limassol’s existing character, which is defined by smaller, community-oriented developments."
As Volvovic points out, "High-rise towers, 30 or 50 stories, may suit places like Dubai or Manhattan, but not Limassol. Many locals already recognise that these massive developments strain existing infrastructure, worsening issues such as parking shortages, traffic congestion, and blocked views."
As well as sharing the company's approach, including identifying a growing demand in central Limassol for more affordable housing options, Volvovic also talks about why VOLCO chose to do business in Cyprus.
Revealing more about VOLCO's upcoming projects, Volvovic also discusses his experience of doing business in Cyprus so far and proposes what the island can do to become more attractive to international companies and investors interested in creating a presence here.
He also puts forward the opinion that buyers, investors and the economy as a whole would benefit from a more open real estate market, also suggesting that the local scene is on the verge of a significant growth cycle.
Can you tell me more about VOLCO’s establishment and its activities on the island, and some of the reasons VOLCO has chosen to operate and invest in Cyprus?
VOLCO was established in 2018 and began operating in Cyprus shortly after the local economy started recovering from the 2013 financial crisis. We recognised tremendous potential in the Cypriot market: a European Union member state with a stabilising economy, investor-friendly tax policies, and strong demand for rental properties. Its close proximity to Israel, where most of our investors are based, made Cyprus a natural choice for us to establish our operations.
I understand that a significant part of your services is dedicated to urban renewal in Limassol. Can you tell me more about the company’s philosophy and approach?
We take a broad view of the entire real estate value chain and constantly assess which stage offers the most meaningful opportunities. From acquiring resale properties to purchasing land for development.
Over the years, we’ve identified a growing demand in central Limassol for more affordable housing options. Most new developments in the city center are designed for foreign investors, which pushes local residents toward the outskirts and can potentially create an artificial market bubble. We believe this model is unsustainable.
Our approach is to do things differently. To attract investments that generate solid returns for investors while also serving the needs of the local population. In the long run, we believe this will help shape a healthier, more balanced, and sustainable real estate market in Limassol.
Can you reveal more about your property-related projects, including the current project you anticipate launching in the coming weeks and which I understand is also connected to affordable housing?
We currently have five projects under development, totaling around 35 residential units. Our most advanced project, located near Tricherousas Elementary, is expected to begin construction by the end of this year.
All our projects focus on low-rise buildings, typically three to four stories high, with four to ten apartments per building. We believe it’s important to preserve Limassol’s existing character, which is defined by smaller, community-oriented developments.
Cypriots generally prefer low-rise living with fewer neighbours, as it helps avoid building management challenges that often come with large complexes. High-rise towers, 30 or 50 stories, may suit places like Dubai or Manhattan, but not Limassol. Many locals already recognise that these massive developments strain existing infrastructure, worsening issues such as parking shortages, traffic congestion, and blocked views.
A one-bedroom apartment on the 30th floor, costing €900,000 might impress foreign investors, but it doesn’t serve the local community. Our goal, instead, is to offer housing solutions that genuinely meet the needs of local residents while integrating harmoniously into the city’s urban fabric.
Can you also tell me more about your other upcoming projects? I believe you are awaiting permits for a number of them in Limassol.
Yes, we currently have several projects in the permitting stage, all located within central Limassol. Each of them follows the same philosophy: smaller-scale developments that serve local demand rather than speculative investment.
These projects are at various stages of approval and will gradually roll out over the next 12 to 18 months. Together, they form part of our broader strategy to bring affordable, well-designed homes back into the heart of the city, helping to revitalise existing neighbourhoods without changing their character.
What are some of the reasons you have, so far, chosen to focus on Limassol, and are there plans to extend your projects to other parts of the island in the future?
Limassol is the business capital of Cyprus. It reminds us in many ways of Tel Aviv — from its rapid development and cosmopolitan character to its vibrant atmosphere that lasts all year round.
But with that growth come familiar challenges: rising prices, congestion, parking shortages, and at times poor urban planning. Tel Aviv went through a similar process over the past few decades, and Limassol seems to be heading in the same direction, only faster. Our goal is to bring in the kind of solutions that proved successful in Tel Aviv, and to be part of Limassol’s continued growth while preserving its unique character.
As for the future, we plan to develop wherever there is genuine need, we don’t rule out any area. That said, Limassol still has plenty of work ahead, and it will remain our main focus for now.
How has your experience of doing business in Cyprus been so far?
The business environment in Cyprus is very welcoming. Almost everyone speaks English, the legal system operates in English as well, and the country actively encourages foreign investment through various tax incentives.
On a personal level, we truly enjoy being here and have great appreciation for Cyprus and its people. Coming from Israel, we feel an instant connection. The warmth, authenticity, and straightforward nature of Cypriots feel very familiar. We live in a complicated region, and that shared reality creates a natural sense of trust and friendship.
What is your view of the island’s real estate sector and its potential?
We believe Cyprus’s real estate market is on the verge of a significant growth cycle. The market has long recovered from the 2013 crisis, and in the coming years, we expect prices to surpass the levels of 2008. Our hope, however, is that this new phase of growth will be a healthier one.
We’re seeing strong demand across the island, both from local buyers and international investors, and there’s a general understanding that property values are likely to keep rising in the coming years. This momentum is attracting a lot of foreign interest, which can be positive for the market, but only if it doesn’t come at the expense of the local population.
Foreign investors tend to come and go, and as their share in the market grows, it becomes more volatile and less sustainable. Limassol, in particular, has reached a stage where it can no longer afford to let market forces alone dictate its direction. It needs more planning and long-term thinking about what the city should look like 20 or 30 years from now, what infrastructure will support its rapid development, and which projects will truly benefit the local community over time.
What do you believe Cyprus can do to become more attractive to international companies and investors interested in creating a presence here?
There are two sectors that, in my opinion, urgently need reform if Cyprus wants to remain truly competitive and attractive to international investors: banking and real estate brokerage.
Starting with banking, Cyprus has achieved remarkable economic progress since the 2013 banking crisis, yet the banking system hasn’t evolved at the same pace. Competition remains limited, service quality is inconsistent, and fees are unnecessarily high. Lending rates continue to be elevated even as the ECB lowers its benchmark, while deposit rates remain close to zero. This imbalance erodes confidence, discourages investment, and slows growth. The system needs to open up, innovate, and allow genuine competition.
The second area is real estate brokerage. Cyprus has one of the most powerful brokers’ associations I’ve encountered, perhaps too powerful. Commissions are among the highest in the world, and strict licensing rules make it very difficult for new agents to enter the market. The result is an industry that operates almost like a closed club, with buyers paying the price. A more open market would benefit everyone — buyers, investors, and the economy as a whole.
