Cyprus has repeatedly proven that it functions as a stable European environment in the wider Eastern Mediterranean region, which, during periods of geopolitical tension, often leads to the transfer of activities, capital and businesses to the country, the Chairman of the Cyprus Property Developers Association Yiannis Misirlis has emphasised.
Asked about the possible impact on the real estate market of the situation in the Middle East, which is causing legitimate concern internationally, and acknowledging that in such periods some investors adopt a wait-and-see attitude, he explained to InBusinessNews that history has shown that markets with strong foundations and institutional stability manage not only to withstand, but also to attract new investment interest.
At the same time, Misirlis points out that, despite the challenges, the real estate sector in Cyprus has, over time, proven its resilience in the face of periods of uncertainty.
Invited to submit his own suggestions for mitigating the possible impacts, the Chairman of the Cyprus Property Developers Association underlines that the most important element for an economy is trust, noting that Cyprus is called upon, among other things, to continue to strengthen its institutional and business framework, ensuring transparency, speed and efficiency in procedures relating to investments and project development.
What are the possible or anticipated impacts on the real estate market from the situation in the Middle East? How is the Cypriot real estate market expected to be affected, in which sectors and from which markets (countries) might impacts arise?
The situation in the Middle East is causing legitimate concern internationally, as geopolitical tensions affect the investment climate, economic expectations and capital flows.
In such times, it is normal for some investors to adopt a wait-and-see attitude until the geopolitical landscape becomes clearer. However, history has shown that markets with strong fundamentals and institutional stability manage to not only endure, but also to attract new investment interest.
Cyprus has repeatedly proven that it functions as a stable European environment in the wider Eastern Mediterranean region, which in times of geopolitical tension often leads to the transfer of activities, capital and businesses to our country.
At the same time, we must also carefully monitor the indirect economic impacts of a prolonged crisis. Potential increases in energy, raw material and transportation costs may affect construction costs and therefore the development of new projects.
Despite the challenges, the real estate sector in Cyprus has proven its resilience in times of uncertainty. It is an industry that is based on real demand, international investment interest and an environment that remains attractive to people and businesses.
The most important thing in such moments is to approach developments with composure, seriousness and responsibility - not with alarmism.
What are your suggestions for mitigating the possible impacts?
In times of geopolitical uncertainty, the most important element for an economy is trust. And trust is built through stable institutions, predictable policies, and effective processes.
Cyprus must continue to strengthen its institutional and business framework, ensuring transparency, speed and efficiency in procedures relating to investments and project development.
Accelerating licensing procedures, reducing bureaucracy and strengthening the country's international visibility as a reliable European investment destination are critical conditions for maintaining the competitiveness of the Cypriot economy.
At the same time, increasing the supply of housing units, strengthening services and further developing sectors such as education, innovation and technology can enhance the overall dynamics of the country.
With proper planning and consistency in policies, Cyprus can not only limit risks, but also capitalise on the opportunities that often arise even in times of international instability.
(Source: InBusinessNews)
