2020 Cyprus Country Report

Construction & Real Estate
Sector Profile
TOURISM REAL ESTATE
With tourism one of the key economic drivers of
Cyprus, there is no doubt that hotels and tourism
infrastructure continue to be a very promising
market and play a vital role in the sector –
albeit the current challenges tourism is facing
due to Covid-19. In this segment, the additions
of new Radisson hotels and a Sofitel, as well as
the soon-to-be-completed Ayia Napa Marina will
strengthen market. The €220 million Ayia Napa
project features twin skyscrapers and a yacht
marina for 600 vessels. Backed by Egyptian business
magnate Naguib Sawiris, the project is set to
transform the status and interest in the Ayia Napa
region. Following the success of Limassol Marina,
marina projects are redefining luxury and the
scope of real estate in Cyprus and plans for
new marinas in Larnaca, Paralimni and Paphos
are also in the pipeline. The tender for Larnaca
Marina received approval in August 2020 and is
expected to attract €1.2 billion in construction
and real estate development.
Investors are now keeping a keen eye on
Larnaca, as it is a city expected to flourish on
par with Limassol in the near future. The coastal
city, home to one of Cyprus’ two international
Melco Resort
airports, is already seeing its share of new highrises
and hotels springing up. The city is revealing
plenty of investment opportunities with its
marina set to be completed in the next few years
and the increasing demand for real estate is supporting
the industry to diversify and develop
more apartments, houses and office space.
A serious game changer in Cyprus’ tourism
product will be the island’s first-ever and Europe’s
largest integrated luxury casino resort. The
almost €600 million casino – which is being run
by the consortium of Integrated Casino Resorts
Cyprus (ICRC) which includes global gaming
giant Melco Resorts & Entertainment Ltd – will
have 500 rooms, extensive facilities and exceed
five-star status. The resort project is Hong Kongbased
Melco’s first expansion outside of Asia and
will be the biggest casino of its kind in Europe.
We believe
that we will
see a shift in
the foreign
investments
of properties
into assets that provide yields,
compared to sun and beach
destinations. We anticipate
the high demand from locals
to continue, as the banks
are willing to keep lending
money for mortgages. In
the contracting business,
the next few years will be
extremely busy given the
government’s policy to release
more infrastructure projects
to increase fiscal spending
and expand the economy.
George Chrysochos
Executive Director
Cyfield Group
Petra Villas, Minthis, Pafilia
In 2019 annual
property sales
were the highest
on record since
2008 with
sales rising in
all districts.
70 Country Report CYPRUS 2020