The real estate sector will continue its upward trajectory in 2026, points out the Chairman of Imperio Group, Yiannis Misirlis, clarifying, however, that there are issues that need improvement and require the cooperation of the stakeholders involved.
In an interview with InBusinessNews as part of the IN Business Forecasting 2026 series, he notes that perhaps the biggest challenge the sector faces is the insufficient supply of real estate, expressing the view that the substantive solution to the issue will come with the cooperation of the state and private sectors. The problem, according to Misirlis, needs to be addressed holistically, focusing on the “pathogens” that exist today and correcting the shortcomings that prevent the introduction of new real estate into the market.
Creating projects that meet sustainability standards, modern needs and at the same time offer a high quality of life is a top priority for Imperio. In this context, work is continuing on Silicon Park in Ayios Athanasios and Imperio Skyline in Germasogeia, while construction work is expected to begin in the new year on Sunset+, the extension of the Best Green Development award-winning Sunset Gardens project in western Limassol.
How do you think the Cypriot economy will perform in the new year and what are its prospects? What do you consider to be the biggest risks and how can they be addressed?
Despite the fact that geopolitical developments continue to create uncertainty worldwide, the Cyprus economy remains strong, with declining inflation and levels of domestic demand positively supporting its growth.
This is also demonstrated by the latest estimates of the European Commission for 2026, which predicts a growth rate of 2.6% in 2026 and 2.4% in 2027 with a reduction in gross public debt as a result of investments and exports of services. The forecasts for the fiscal surplus are also encouraging, as are those for foreign investment, which is expected to continue mainly in real estate activities.
Cyprus today is a particularly attractive destination for investment thanks to its geographical location, the stability of the financial sector, the quality of life, as well as the professional opportunities it offers. In recent years, high-standard projects have been implemented, both in residential and commercial and tourist properties, which are upgrading the overall urban environment and enhancing the image of our country abroad.
All of the above allows us to maintain moderate optimism, as a strong economy translates into further growth in the real estate sector. I believe it is no coincidence that in 2025 we had an increase in real estate investments, a fact that we believe will continue in the coming years.
Correcting the shortcomings that prevent new properties from entering the market
How do you anticipate that the real estate sector will develop in 2026, and what are the most important challenges?
The real estate sector will continue its upward trajectory in 2026, however, there are issues that need improvement and it is necessary for all stakeholders to work towards addressing them. At the same time, precisely because the sector is directly and indirectly affected by external factors, we should be ready to manage any issues that emerge and act as a brake on developments. Perhaps the biggest problem facing the sector is the insufficient supply of real estate, and I am of the opinion that the substantive solution to the issue will come with the cooperation of the public and private sectors. Clearly, the measures announced by the government are moving in the right direction, however, they need enough time to pay off. The problem needs to be addressed holistically, focusing on the "pathogens" that exist today and correcting the shortcomings that prevent the introduction of new properties into the market.
Of great importance is also the improvement of the development licensing system. In this sector too, some positive steps have been taken, with regard to small and medium-sized developments; however, it is imperative that the procedures become even more flexible and efficient. At the same time, the sector is faced with the problem of a lack of human resources, a fact that concerns us very strongly.
What are the most important trends we will see in the industry in the coming years?
Sustainability in the real estate sector is a huge chapter that is opening up before us and is already defining the future of the sector. I believe that the sector's shift to green developments and buildings with a zero environmental footprint is a must. At the same time, financial resources and incentives are needed to promote such developments so that private companies do not bear the burden of this transition exclusively. In addition to sustainability in the sector, mixed developments are evolving among the main trends in the real estate sector. The combination of offices, residences and entertainment, in a single modern environment, has created a new model of life, where sustainability, social cohesion and quality of life are at the heart of urban planning. Regarding commercial real estate, trends show that modern workplaces with green features, and quality, technologically advanced and energy-efficient buildings are gaining ground and are in increasing demand. Another important trend is the so-called gated communities, which are a popular choice especially for new buyers or tenants, as they provide security and privacy and many amenities that significantly improve the quality of life.
Silicon Park, Imperio Skyline , Sunset + and another development
What can we expect in terms of your organisation's development and expansion plans and strategy in 2026? What moves do you intend to make in this direction?
Creating projects that meet sustainability standards, modern needs and at the same time offer a high quality of life is a top priority for Imperio. We remain unwavering in our commitment to creating projects based on sustainability, ESG principles and sustainable investments. Combining these characteristics, Imperio presents Silicon Park in Ayios Athanasios, the works of which have started and are expected to be delivered in December 2028. The project offers a comprehensive solution that combines innovation, sustainability and high aesthetics. This mixed-use development redefines the relationship between professional and personal life, setting new standards in the way modern professional spaces operate in Limassol. The new, state-of-the-art residential development Imperio Skyline will also be a model of sustainability and innovation for the city of Limassol. The project, works on which have also started, is located in a privileged area of Germasogeia and has been designed with the aim of creating a secure gated community. It includes a number of amenities, such as a modern clubhouse with a swimming pool, a gym, a co-working space and a resident's lounge, photovoltaic systems and electric vehicle charging stations, etc. At the same time, construction work is expected to begin in the new year for Sunset+ , the extension of the Best Green Development award-winning Sunset Gardens project in western Limassol. Sunset+ follows the philosophy of an organised, sustainable community, with modern residences that enhance the quality of life, while residents will have full access to the amenities of the existing development.
We will announce another project in 2026, for which I reserve the right to provide more information at a later stage. Imperio has for years been dedicated to creating innovative, sustainable projects that add quality of life to people. We remain committed to our goal of creating spaces that perfectly combine personal and professional life, creating a new residential experience that supports and develops people and facilitates their everyday life.
The new year sees the implementation of the tax reform, which is taking place 22 years after the previous tax reform. How do you estimate that it will affect the Cypriot economy, businesses, and the attraction of foreign investments?
There is no doubt that the Cyprus tax system has historically been attractive to foreign investors. However, any reform is necessary as economic conditions and market needs evolve. Adapting to the new framework does not mean losing competitiveness. On the contrary, it creates opportunities for a more modern and reliable business environment. For our industry, this means reassessing product strategy, focusing on value-generating projects, such as green buildings and energy-efficient developments, as well as leveraging incentives that enhance sustainability.
(Source: InBusinessNews)
