“Provided that supply expands in a balanced and sustainable manner, foreign demand will continue to underpin the development of high-end and mixed-use projects, while elevating the overall quality and competitiveness of the local real estate sector,” Andreas Demetriades, President of the Association of Large Investment Projects says.
In his recent interview with GOLD magazine, Demetriades shared his views on ever-developing real estate market, in an industry which favours the build-to-rent (BTR) estates, while co-living formats are becoming integral parts of master-planned developments.
He, among other things, discusses the how rental properties have evolved from optional features to essential pillars that foster market depth, professional management and sector stability.
Rental yields in Cyprus are strong by EU standards (often 4%–7% or more in short-let markets). Do your members now place greater emphasis on rental-oriented components within large investment schemes?
Yes, our members do place increased strategic emphasis on rental-oriented components within large-scale investment schemes. Build-to-rent (BTR), serviced apartments, student accommodation and, in some cases, co-living formats are becoming integral parts of master-planned developments. These asset classes respond to the structurally stable demand generated by international professionals relocating to Cyprus – particularly in technology, fintech, shipping and professional services – by corporate expansions supported by tax and relocation incentives and a steadily expanding student population linked to private universities and international programmes.
Importantly, this shift reflects a broader evolution of development strategy. Rather than relying solely on unit sales and upfront capital recycling, developers are increasingly adopting hybrid or long-term hold models. Retaining income-generating components within mixed-use schemes enhances recurring revenue, stabilises cash flow profiles and improves overall project internal rate of return (IRR) through yield-on-cost optimisation.
From a risk management perspective, rental components also provide counter-cyclical resilience. During periods of slower sales absorption, stabilised rental income supports debt servicing and strengthens project bankability. For institutional investors, this predictable income stream improves asset valuation metrics and aligns with long-term portfolio strategies focused on income security. Overall, rental-oriented elements are no longer supplementary – they are becoming a core structural pillar in the planning and financing of major investment schemes in Cyprus, contributing to greater market depth, professional asset management and long-term sector stability.
Reports show that foreign buyers accounted for a significant share of transactions in 2025 (around 30%-40%). How is this influencing demand for large developments and high-end properties?
Foreign buyers have become a structural demand pillar of the Cypriot property market rather than a cyclical factor. Their presence significantly influences both product design and capital allocation decisions within large-scale developments. The influx of foreign buyers is not homogeneous. It includes EU nationals acquiring primary or secondary residences, international professionals relocating under Cyprus’ tax and business incentives, corporate executives linked to the technology, fintech, shipping and professional services sectors, lifestyle-driven buyers seeking coastal or resort properties, and yield-focused investors targeting rental income. This diverse demand base is primarily concentrated in high-quality, energy-efficient, architecturally contemporary projects – both in prime coastal locations and in urban centres with a strong business ecosystem such as Nicosia, Limassol and Paphos. At a macro level, this trend reinforces Cyprus’ positioning as a stable, EU-regulated and business-friendly investment jurisdiction. Provided that supply expands in a balanced and sustainable manner, foreign demand will continue to underpin the development of high-end and mixed-use projects, while elevating the overall quality and competitiveness of the local real estate sector.
This interview first appeared in the March edition of GOLD magazine. Click here to view it.
