Nicosia is finally discovering what it means to be a European capital – global in outlook yet rooted in authenticity and human connection.
Mayor Charalambos Prountzos explains how the capital is embracing smart city innovation, creative urban living and a business-friendly mindset that attracts international companies, while keeping its signature warmth and livability intact.
What makes Nicosia a compelling choice for investors and international companies compared to other European cities and regional capitals in the EMEA region?
Nicosia combines the advantages of a European capital with the agility of a fast-growing regional hub. Our location gives companies and their people a unique access point to three continents, supported by a stable EU and eurozone environment. The city offers an affordable, high-quality lifestyle with great international schools, modern healthcare facilities and high-standard housing. What distinguishes Nicosia is its human scale and its innovation-driven mindset. We are not trying to become another large metropolis – we are shaping a city where business, research and culture coexist harmoniously. The capital is home to Cyprus’ major universities, tech incubators and financial institutions and this concentration of talent and knowledge gives Nicosia a distinct niche as the country’s innovation and decision-making centre. We envision Nicosia as a boutique capital for smart, sustainable and creative business.
What steps is the Municipality taking to modernise infrastructure to support business growth?
In the last decade Nicosia has invested approximately €250 million in urban redevelopment and infrastructure improvement projects. All of them were implemented with the highest standards of accessibility, with our Smart City infrastructure and solutions winning many local and international awards. Modernising Nicosia’s infrastructure lies at the heart of our strategy. We are transforming key urban areas through projects such as the redevelopment of the SOPAZ area, a former industrial site that will become a mixed-use innovation quarter combining offices, creative spaces and green public areas. Similarly, the State Fairgrounds will be converted into a new urban hub, integrating exhibition facilities, start-ups, sports infrastructure and leisure spaces. We are investing in smart city technologies, high-speed connectivity and e-government tools – the Municipality is digitalising permit issuance, licensing and citizen services to make processes faster and more transparent. Our goal is to make Nicosia one of the most digitally advanced small capitals in Europe, where doing business is efficient and predictable.
What initiatives are in place to make Nicosia more attractive to young professionals and international talent?
Attracting and retaining talent is a priority. We are creating a safe and open environment where young professionals can thrive professionally and socially. The city now hosts several co-working spaces and Centres of Excellence, in both the old city and the new Makarios Avenue business district, offering affordable, flexible workplaces for startups and freelancers. We are also enhancing the city’s cultural life, revitalising public squares, promoting cycle paths and green corridors and investing in creative neighbourhoods that blend art, gastronomy and entrepreneurship. For international professionals, we are working closely with the universities and embassies to ease integration and foster a multicultural urban community. Affordability is key and we are proud to say that we have a holistic strategy to balance housing supply and demand, ensuring attractive residential and commercial rents. There are many applicable incentive schemes in Nicosia for youth and female entrepreneurship in hospitality and other sectors and many central government funding options for research and innovation. English and other languages are widely spoken in Nicosia and there is a variety of modern sporting facilities as we are interested in the wellbeing of our residents and visitors.
As Mayor, how do you engage with the business community to better understand their needs?
I come from the private sector and, prior to becoming Mayor, I helped many companies and individuals to relocate to Cyprus. I have been part of the local business community for more than 20 years and maintain an open-door policy to sustainable business. Open dialogue is fundamental to my approach. We hold regular roundtables and networking events with the Cyprus Chamber of Commerce & Industry, local associations and foreign business councils to ensure that policy decisions align with real business needs. I also maintain direct communication channels with entrepreneurs and startups because innovation often comes from the grassroots. We see the Municipality not as a regulator but as a partner that helps businesses grow responsibly. Our administration works to remove barriers, facilitate collaboration and build trust between the private sector and local government. I travel a lot in order to discover best practices as well as to present the city and its huge prospects.
Bureaucracy has always been a problem in Cyprus. How are you streamlining eseential processes to make it easier for companies to operate in Nicosia?
We are simplifying licensing and permit procedures through digitalisation and better coordination between municipal departments. Our aim is for companies to obtain the necessary approvals quickly and transparently. In parallel, we are introducing incentives for the reuse of listed and historic buildings, promoting their transformation into offices, co-working hubs or cultural spaces. Partnerships with academic institutions and private investors are helping us create innovation districts that combine education, entrepreneurship and urban living. We are also collaborating with Invest Cyprus and other national agencies to promote Nicosia as an ideal base for regional headquarters, tech firms and professional services. Through meetings with the Business Council that I have established, we receive suggestions on incentives in various areas such as building and incorporate them into suggestions that we make to other competent authorities.
How do you envision Nicosia’s role in Cyprus’ economic and business landscape over the next decade?
I see Nicosia evolving into a model capital for sustainable and knowledge-based growth. With projects like SOPAZ and the State Fairgrounds redevelopment, we are redefining urban space to serve the economy of the future. Our vision is a vibrant, green and digital Nicosia, a city that attracts investment not only through incentives but through quality of life, creativity and confidence in its institutions. Above all, our vision is to elevate Nicosia to the level it truly deserves: a European capital that stands proudly as the heart of Cyprus, an innovation ecosystem and a dynamic city shaping the country’s future. In just 15 months since our election, we have seen many of our policies yielding results: investment activity is increasing significantly, the Old Town of Nicosia is hosting a new branch of the best-known Greek university (including a Medical School), there are many new hotels being developed and top quality housing developments are increasing rapidly across the city. There are plans for new private and public schools, hospitals and retail spaces and our innovation ecosystem is growing. Many renowned international companies are choosing Nicosia as their new regional HQ and existing universities are growing and rising up the global rankings. We are extremely optimistic about this new growth cycle for our city, with people being at the epicentre of our approach.
This interview first appeared in the November edition of GOLD magazine. Click here to view it.
