George Ioannou: The real estate sector’s ability to attract foreign investment is noteworthy

George Ioannou, CEO of Korantina Homes suggests that, based on the information at hand, the real estate sector will continue its upward trend in 2024.

According to Ioannou, this is as a result of the increase in demand from new markets with a simultaneous adjustment of the offered product in accordance with the new trends and needs of buyer-investors.

In an interview with InBusinessNews, in the context of "IN Business Forecasting 2024," Ioannou indicates that it has been proven that the land development and construction sector in Cyprus is a strong and solid pillar of the country's economy. He also emphasised the need for a modern framework governing the sector which recognises the trends and needs of the international market and provides incentives to prospective investors.

The CEO of Korantina Homes, referring to the problems facing the sector, notes, among other things, that geopolitical uncertainty, international energy instability and problems in the supply chain, have caused a significant increase in the prices of raw materials and materials for the constructions.

As far as Korantina Homes is concerned, George Ioannou refers to the projects he plans to implement in 2024, stressing that apart from its business goals, in 2024 the company's main priority is to strengthen, even more, the relationship of responsibility that it has built with the Cypriot society and especially with the society of Paphos.

How do you see the economic environment shaping up in 2024, in light of inflationary pressures, high interest rates and unpredictable ever-changing geopolitical developments?

The war conflicts in Ukraine and the Middle East, energy volatility, inflationary pressures and high interest rates, maintain, internationally, an environment of prolonged uncertainty.

In these circumstances, it is risky to make safe predictions, especially regarding Cyprus which is vulnerable to external factors. However, the Cypriot economy has consistently demonstrated strong reactions of resilience and adaptation.

The combination of a public sector that makes the necessary reforms, with a private sector that stands out for its innovation, extroversion and resourcefulness, can make a difference and bring about positive results in 2024.

Demand from new markets

What do you think will be the course of the sector in which you operate in 2024?

As has been proven in recent crises, the land development and construction sector in Cyprus is a strong and solid pillar of the country's economy.

Indicative is the fact that more than 40,000 people are directly employed in the sector’s businesses, while its contribution to the country's GDP is of the order of 15% according to the latest data.

Particularly noteworthy is the sector's ability to attract foreign investment, even in volatile or turbulent times such as today.

Based on the information at hand, our assessment is that the sector will continue its upward trajectory. The reason is simple. There is an increase in demand from new markets with a simultaneous adjustment of the offered product according to the new trends and needs of buyer-investors.

What are the most important problems that are currently plaguing your sector and the solution of which you consider to be a priority in view of the new year?

Geopolitical uncertainty, international energy instability and supply chain problems have caused a significant increase in the prices of raw materials and construction materials.

Despite the effort to absorb a large part of the increase in the cost of implementing the projects, there is nevertheless a financial pressure on the companies in the sector and, by extension, an additional burden on investors.

Another serious problem-challenge is the lack of personnel, both skilled and unskilled. In the businesses of this sector, we put a lot of staffing effort into the implementation of new projects.

Also, the issue with the delay in the issuance of permits and the related bureaucracy is a perennial one. Despite the great development of the sector in recent years, the necessary reform steps have not been taken that would speed up the issuance of the necessary permits.

If you could ask the Government to take specific measures or formulate policies to support/strengthen your sector, what would they be?

In my opinion, we need a modern framework in Cyprus that governs the real estate sector, recognises the trends and needs of the international market and provides incentives to prospective investors.

Following on from the previous answer, it is also important to simplify and speed up the project licensing process.

Korantina Homes in 2024

What are your organisation's plans and strategy for 2024? Should we expect new developments and your further consolidation in the market?

At Korantina Homes we plan our development strategy methodically, taking into account the challenges and trends of the times. We give special weight to the most important concept for every business. And this is the meaning of trust. We want to create strong bonds of trust with our customers, our staff, our partners, society.

In 2024, the construction of the innovative Royal Bay Resort residential project in the city of Paphos is scheduled to be completed and the second phase of the SOHO Tower is planned to begin immediately.

Also, within this year, we are planning the inclusion in the market of two more residential developments in the centre of Paphos.

What differentiates the specific projects is the 24-hour personalised provision of top quality services, such as club house, spa, gym, restaurants, etc. Finally, a series of smaller residential projects in the areas of Peyia and Paphos are also on the way to implementation.

But apart from our business goals, in 2024 our main priority is to strengthen, even more, the relationship of responsibility that we have built with the Cypriot society and in particular with the society of Paphos.

We believe that every business success is meaningful only when it has an impact on society. In this direction, we are developing a series of actions related to the support of: Sports, education, culture and environmental protection.

The role of technology is crucial

What roles does, such as artificial intelligence, play and what changes is it expected to bring about in your field?

We live in a digital age and, without a doubt, the role of technology is crucial for all of us. We examine every new technology and try to immediately adapt to developments concerning the field and our work.

We believe that technology is a very important tool that, with proper management, can help the modern business to grow and offer reliable services to its customers.

(Source: InBusinessNews)