Yiannis Misirlis: The real estate sector’s proven contribution to the economy and unfair targeting

One of the most significant pillars of the Cypriot economy, with a multidimensional and substantial contribution to the country's development path, is the real estate development and construction sector, with a contribution reaching 15% of the GDP and encompassing over 40,000 employees.

In an interview with InBusinessNews, the Chairman of Cyprus Property Developers Association and Founder and Director of Imperio, Yiannis Misirlis, describes the targeting of an entire sector due to some isolated incidents as unfair and leveling.

Explaining that the vast majority of companies in the industry operate responsibly, applying strict standards and working under a strict regulatory framework, he, at the same time, makes it clear that those who violate the law should suffer the consequences, without any tolerance.

The Cypriot real estate market maintains both its momentum and its positive outlook for 2025, confirming the steady upward trend it has been following in recent years.

However, according to Misirlis, the main challenges facing the real estate development sector concern the lack of a workforce, both technical and specialised, the acceleration of building permit issuance procedures, as well as the sector's transition to the "green" era.

Asked about the ongoing trade war that began with the imposition of tariffs by the US, the Chairman of Cyprus Property Developers Association points out that under no circumstances should there be complacency in Cyprus.

However, as this indicates, the Cypriot real estate market, having proven over time its resilience, strength and flexibility in times of crisis, also functions as a stable investment option.

"So, as in times of global uncertainty, investors turn to more 'stable havens', Cyprus and the real estate market precisely offer a safe environment for investments," Yiannis Misirlis emphasises.

What is the course of the real estate sector so far this year and what are the indications for the rest of the year? What are the sector's dynamics in terms of number of sales and total value of transactions?

The real estate market in Cyprus is maintaining both its momentum and its positive outlook for 2025, confirming the steady upward trend it has been following in recent years.

This fact is also reflected in the numbers before us. According to official data from the Department of Lands and Surveys, sales documents filed nationwide in the first quarter of 2025 recorded an increase of 15%.

The largest increase was recorded in Larnaca with a remarkable percentage of 26%, followed by Nicosia and Limassol with 15%, Paphos with 7% and Famagusta with 4%.

The increase recorded in each province is particularly encouraging, as it reflects the steady growth path of the market and confirms the positive momentum that has been created through the provision of modern, high-quality and energy-efficient properties throughout Cyprus.

In terms of total sales value, although 2025 presents a positive outlook, we must keep in mind that we are still at the beginning.

However, to give you an idea of ​​the scale, in 2024, the value of new apartment sales reached €1.5 billion, while the value of new homes reached €510.6 million. We therefore expect that 2025 will also move to similar - if not higher - levels.

The main challenges and the key to addressing them

What challenges does the sector face?

The real estate development industry, despite its positive trajectory, continues to face a series of significant challenges that affect its operations.

The main challenges today concern:

The lack of labour, technical and specialised, which may cause delays in the implementation of projects, increase costs and reduce the competitiveness of the Cypriot real estate market.

The formulation of a comprehensive strategy for attracting a workforce is of utmost necessity.

The acceleration of building permit issuance procedures. The recent decision of the Ministry of Interior to extend self-permitting to low and medium-risk developments, which provides for the issuance of permits within 40 days, is certainly a positive step.

The successful implementation of this process, as well as ensuring a flexible and effective licensing system for the remaining large developments, is now the big issue.

The transition of the industry to the "green" era. Sustainable development and the integration of environmentally friendly practices in real estate development are now an imperative, with multiple benefits for both the environment and the buyers themselves.

A green strategic plan, fully aligned with Fit for 55 and the European Union's legislative proposals, and which will include targeted incentives, is crucial.

Dialogue and cooperation are key to effectively managing these challenges. Through coordinated efforts with the Ministry of Interior and all relevant bodies, we can overcome obstacles and ensure the dynamic development and continuity of our industry.

The trade war and the real estate market as a solid investment option

Do you expect the recent imposition of tariffs by the US and the ongoing trade war to affect the real estate market?

The ongoing trade war that began with the imposition of tariffs by the US has undoubtedly caused turmoil in the international economic scene. The balances we have known until now in global trade have been disrupted, creating an environment of intense uncertainty.

When it comes to Cyprus and the Cypriot real estate market, however, the picture is different. Our country remains a safe and attractive investment destination, with a favorable tax framework and continued economic growth. This does not mean in any way that we should be complacent. Quite the opposite.

At the same time, the Cypriot real estate market, having proven over time its resilience, strength and flexibility in times of crisis, functions as a stable investment option.

As, in times of global uncertainty, investors turn to more "stable havens", Cyprus and the real estate market precisely offer a safe environment for investment.

In these difficult circumstances that are taking shape, Cyprus has the opportunity to further strengthen its position on the investment map, offering the two main ingredients that investors are looking for: security and perspective.

The proven contribution of the sector to the economy

What is the estimated contribution of the real estate sector to the Cypriot economy (GDP, tax revenues, jobs, etc.)?

The real estate development and construction sector has historically been one of the most important pillars of the Cypriot economy, with a multidimensional and substantial contribution to the country's development path.

With a contribution of nearly 15% of the GDP and more than 40,000 employees, our industry consistently supports the economy, creates growth and offers significant opportunities.

Its decisive contribution to the emergence of Cyprus as an international business and investment destination, with multiple benefits for the country, is an equally important example of the significant contribution of our sector to the economy.

Our industry has proven time and again that even in the most difficult times, it continues to support and strengthen the Cypriot economy. It continues to be a driver of Cyprus' growth and an integral part of its evolution.

Housing remains a significant problem for a large part of the population. Is there any correction or restraint in property and rental prices? Are further decreases expected in the near future?

Indeed, the housing problem continues to be one of the most basic challenges that many of our fellow citizens are called upon to face today.

Despite the fact that in recent months we have observed price restraint, the data varies depending on the category and type of property, the province and region, as well as being based on other factors.

Looking at the latest available House Price Index data, what we know is that in the 4th quarter of 2024, house prices recorded a 1% decrease compared to the previous quarter. This decrease is the largest since the 4th quarter of 2022. On the contrary, rents continue to have an upward trend, as in 2024 they increased by 4.6% compared to 2023.

At the given moment and with everything that is developing in the international political and economic scene, it is difficult to predict how Cyprus and the housing problem will be affected.

What we expect, however, is that as the Ministry of Interior's housing policy takes shape, the supply of real estate, as well as the supply of affordable housing, will increase, contributing to the reduction of prices.

The role that industry professionals are called upon to play in this effort is particularly important, as they have the know-how, experience, and human resources to contribute to the implementation of projects.

For our Association, the right to housing is a key pillar of social cohesion, economic and social development, as well as quality of life. It is a fundamental human right that we all – public and private sectors – must work to safeguard.

We therefore continue to support every effort by the Ministry of Interior and the Cyprus Land Development Corporation to resolve the housing issue.

Through the submission of suggestions and proposals that can contribute to the widespread utilisation of the measures, our Association continues to work towards achieving the desired goal: That every citizen has access to affordable housing, according to their own needs.

Unfair targeting due to isolated incidents

The land development sector has often been the target of criticism and negative commentary. Do you think the sector is being unfairly targeted?

The real estate development sector, as one of the most active and large sectors of the economy, is naturally often at the centre of public debate and under the microscope of society.

In many cases, however, the criticisms that are heard do not reflect the reality of the sector. This is an industry that contributes significantly to the country's GDP, employs thousands of workers, attracts investments and plays a catalytic role in the overall development of Cyprus.

The vast majority of companies operating in the industry operate responsibly, applying strict standards and under a strict regulatory framework.

Therefore, it is unfair and devastating to target an entire industry because of a few isolated incidents. And this does not only concern our industry, it concerns every professional sector.

At the same time, I want to be clear: Those who break the law must suffer the consequences of the law, without any tolerance.

Beyond that, dialogue and constructive criticism of the sector, with documented positions and suggestions, is always useful and necessary. Because it is through this process that the sector can continuously evolve and improve for the benefit of society and the economy of our country.

(Source: InBusinessNews)