The position that the Cyprus real estate market is showing strong growth, but still has significant untapped potential was highlighted during a presentation at the 20th Real Estate, Property Development & Construction Conference & Exhibition by the Head of Business Development and Strategy, Altia, Demetris Tsiakkis.
The conference was presented by Altia and brought together representatives from the land development, construction and investment industries.
A resilient and growing market
In his speech entitled "A thriving market with untapped potential: Cyprus Real Estate's next chapter", Tsiakkis noted that the Cyprus real estate market is today a resilient and sustainably growing market, which continues to be an attractive option for foreign investors.
As he explained, compared to other similar countries such as Greece, Malta and Spain, property in Cyprus remains generally more affordable. Combined with the country's stability and improving economic performance, this creates investment opportunities with lower risk and higher return prospects.
Institutional weaknesses and bureaucracy
Despite the positive picture, Tsiakkis stressed that there are significant issues that limit the further development of the market. Among these, he mentioned the institutional framework, administrative procedures and bureaucracy, noting that the management and possession of real estate has become particularly demanding due to the large number of administrative obligations.
As he noted, investing in the real estate sector often involves lengthy bureaucratic procedures, such as issuing permits or property titles, which significantly lengthen project timelines and affect investment decisions, especially in large development projects. He underlined the need for further digitalisation of the sector and a significant reduction in processing times.
Market challenges and the need for reforms
Tsiakkis also referred to issues such as the protection of owners and tenants, noting that, while the protection of tenants is necessary, it is also necessary to strengthen the protection of owners against the risk of leases. As he said, faster and fairer resolution of disputes could strengthen investor confidence and even contribute to the containment of rents.
He also made particular reference to the issue of co-ownership, which he described as frequent and particularly time-consuming, as its resolution can take up to ten years, tying up significant real estate value - often in prime locations.
At the same time, he pointed out problems related to the maintenance of older buildings and the payment of common fees, emphasising that inadequate maintenance affects the viability of entire areas and the marketability of properties with multiple owners.
Infrastructure and vacant homes
In his presentation, Tsiakkis also referred to the need for better planning of urban ecosystems. As he noted, while housing construction continues, the necessary emphasis is not always given to the infrastructure required to support the communities that are created.
Finally, he addressed the issue of vacant properties, which he described as an emerging problem for the sustainability of the market. As he said, addressing the phenomenon could increase the supply of housing, contribute to price control and lead to a healthier market, suggesting the adoption of both positive and negative incentives for the utilisation of properties.
In conclusion, Tsiakkis underlined that, despite the market’s growth, it is important to understand the factors that fuel it and to develop a more holistic approach to the future of the sector. As he noted, the real estate market competes with other investment options to attract capital and, therefore, Cyprus needs to focus on what investors value in order to enhance its attractiveness.
(Source: InBusinessNews)
