Pantelis and George Leptos on Cyprus' real estate market and the vital role of government incentives

Pantelis M. Leptos and George M. Leptos, Co-Presidents of the Leptos Group, analyse the issues facing the local real estate market and identify the vital role of local government reforms and national government incentives in shaping the latest industry trends.

What is your outlook for the real estate market over the next 12-18 months? Which segments do you expect to experience significant growth?

Pantelis M. Leptos: The outlook is highly encouraging, and we see Cyprus continuing to perform exceptionally well, especially in the residential and commercial segments. At the Leptos Group, we are witnessing growing demand for integrated communities that offer more than just housing – they offer a way of life. Projects like Venus Gardens in Paphos and Limassol Blu Marine in Limassol’s upcoming seafront area are attracting international buyers who value not only a great location but also superb quality and 5-star amenities. Residential tourism, health & wellness real estate and branded resorts will drive the next wave of growth, and we are well-positioned at the forefront of this trend.

The local real estate market has demonstrated considerable resilience but it is not without its problems. What are the biggest challenges the industry will face this year and beyond?

George M. Leptos: Cyprus is a safe harbour and usually benefits from geopolitical uncertainty, especially in our region. Challenges exist but they’re manageable and the Leptos Group has consistently adapted with foresight. The top three issues are: keeping pace with the rising cost of materials, ensuring the availability of skilled labour and modernising administrative processes. That said, our in-house construction capabilities, long-standing supplier relationships and proactive planning help us maintain efficiency and delivery schedules. We also believe that Cyprus’ strong investor appeal and government collaboration will help sustainably resolve these challenges.

Compared to other Mediterranean destinations, how competitive is Cyprus in attracting international clients and institutional investors? What are the country’s key advantages and where do you see vulnerabilities?

Pantelis M. Leptos: Cyprus stands out for its safety, legal transparency, EU membership, democracy and high quality of life – all key factors that attract international investors. For decades, Leptos Estates has welcomed buyers from all over the world, many of whom choose Cyprus for its lifestyle, climate and stable business environment. Our developments are designed with these global expectations in mind. While bureaucracy remains an area to improve, the island’s value proposition is extremely strong and continues to attract high-calibre interest from both individuals and institutions.

The island’s high-end property market is increasingly attracting the attention of institutional investors, private equity funds and family offices. To what extent is the influx of institutional capital reshaping the real estate landscape?

Pantelis M. Leptos: Cyprus has established itself as a regional business centre. Its EU and Eurozone status, together with the latest generous headquartering incentives and low taxes, makes Cyprus a favourable investment destination. We have recently seen major foreign investments from all over the world in many industry sectors, including real estate, healthcare, hospitality, services and especially the IT sector. Institutional capital is entering the market and we welcome it. At the Leptos Group, we are developing sophisticated, sustainable projects, including the Neapolis Smart EcoCity in Paphos, a mixed-use project ideal for international institutional investors.

It’s now a year since local government reforms were implemented. What has their impact been on the real estate industry and is there room for further improvement?

George M. Leptos: The reforms are a step in the right direction and we’ve already seen improved coordination at the local level. At the Leptos Group, we’ve worked closely with municipalities for decades and more streamlined cooperation only helps accelerate responsible development. For further progress, we recommend expanding digital permit issuance, empowering local authorities with greater planning autonomy and continuing investment in professional training. With these improvements, the reforms can significantly enhance Cyprus’ investment appeal.

To what extent are government policies shaping development trends in the real estate sector?

Pantelis M. Leptos: Government incentives are playing a vital role. Fast-track permits and tax-friendly policies have helped many of our projects move ahead efficiently, thus boosting growth. Our focus on green development – from energy-efficient buildings to environmentally responsible infrastructure – has aligned perfectly with state subsidies and EU-backed sustainability goals. These policies reinforce Cyprus as a modern, forward-looking real estate destination and we at the Leptos Group are proud to help lead that evolution.

• This article was first published in the May issue of GOLD magazine. Click here to view it