Evangelia Eliadou: There is a shift toward curated environments where residents can truly live, work and thrive

Evangelia Eliadou, Executive Director of Pafilia, sees increasing demand for developments that offer a holistic living experience and anticipates growth in branded residences, mixed-use spaces and hospitality-backed real estate.

She also calls for greater consistency, transparency and long-term vision in government policies.

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

The outlook for 2025-2026 is highly promising, particularly within the premium residential and lifestyle-oriented sectors, where Cyprus continues to attract strong international interest. At Pafilia, we see growing demand for integrated, community-style developments that offer more than just a home; they deliver a holistic living experience.

Projects like Minthis, which blend wellness, nature, leisure and architecture, reflect this shift toward curated environments where residents can truly live, work and thrive. These types of developments resonate strongly with modern buyers seeking connection, quality of life and long-term value.

We also anticipate steady growth in hospitality-driven real estate and branded residences, as well as a renewed focus on mixed-use spaces that enhance both investment appeal and local vibrancy. The real estate sector in Cyprus is evolving and we are proud to be at the forefront of that transformation.

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?

Cyprus has shown remarkable resilience and adaptability in the face of global and regional challenges and this gives us confidence in the market’s long-term trajectory. That said, every evolving industry must navigate complexities. Looking ahead, one area we continue to monitor is geopolitical uncertainty, which can influence investor sentiment across the broader region, not just in Cyprus.

Secondly, rising material and construction costs – a global trend – present opportunities to innovate in procurement, project management and design efficiency.

Finally, as demand grows, ensuring the availability of skilled labour and streamlined regulatory processes will be key to maintaining the pace and quality of development.

These are not insurmountable issues; rather, they are catalysts pushing the industry to evolve, modernise and strengthen its foundations for sustainable growth. At Pafilia, we view each challenge as an opportunity to lead with foresight, creativity and collaboration.

Compared to other Mediterranean destinations, how competitive is Cyprus in attracting international clients and institutional investors?

Cyprus holds a strong and increasingly competitive position among Mediterranean destinations, thanks to its strategic location, high quality of life, EU membership, favourable tax regime and well-established legal and financial systems. These advantages continue to attract international clients and institutional investors who value stability, lifestyle and long-term potential.

Moreover, the island’s growing focus on sustainable development and high-end real estate further enhances its appeal. Like any maturing market, there is always room for improvement. Continued progress in areas such as urban infrastructure, digital transformation and regulatory efficiency will help ensure that Cyprus remains not only attractive but also future-ready.

Importantly, the public and private sectors are increasingly aligned in recognising these priorities, which gives us great optimism about the country’s trajectory. At Pafilia, we remain committed to helping elevate Cyprus as a premier destination for global investment.

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?

Institutional capital is elevating standards and expectations across the board. It brings a more structured, data-driven approach to real estate investment and development, focusing on scalability, long-term value creation and ESG compliance. This is encouraging local developers, including Pafilia, to further professionalise operations, enhance governance and deliver more integrated, lifestyle-oriented developments. It’s also driving innovation in areas such as branded residences, mixed-use urban regeneration and hospitality-backed real estate. Ultimately, this evolution is positive, aligning Cyprus with global benchmarks and unlocking more resilient, diversified growth.

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?

The implementation of local government reform represents a significant and welcome step toward improving public administration and urban planning in Cyprus. While it is still early to assess the full impact of the changes, we view the reform positively and believe it lays a strong foundation for future improvements. At present, there are certainly growing pains, as is natural with any major structural change, and we acknowledge that the system is still in transition.

However, the shift toward more digitalised, centralised processes – especially for permit- and development-related applications – holds great promise. We are optimistic that, once fully operational, the new framework will lead to faster, more transparent procedures that benefit both investors and local stakeholders.

At Pafilia, we support this evolution and believe that Cyprus must continue to modernise its governance systems. With continued investment in digital infrastructure and sustained collaboration between the public and private sectors, the reform has the potential to significantly enhance the ease of doing business and elevate Cyprus’ reputation as a reliable and competitive investment destination.

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

Government policies continue to play an influential role in shaping the direction of the real estate sector in Cyprus and their positive impact is increasingly visible. Incentives such as tax benefits for foreign buyers and the fast-track granting of permits for strategic projects have helped attract high-quality investment and elevate the island’s global profile.

Emerging frameworks like green subsidies and build-to-rent initiatives are encouraging more sustainable and diversified development models – trends that align with evolving investor priorities and lifestyle demands. To maximise their potential, these programmes must be implemented with consistency, transparency and long-term vision.

At Pafilia, we welcome these policy directions and believe that ongoing collaboration between the public and private sectors will be key to ensuring that Cyprus remains competitive, innovative and resilient in a rapidly evolving global market.

This interview first appeared in the May edition of GOLD magazine. Click here to view it.