CYPRUS Trends and Developments Contributed by: Marios Konstantinou and Stalo Konstantinou, George K. Konstantinou Law Firm
George K. Konstantinou Law Firm 55 Gladstonos Roussos Centre Point 5th Floor, Office 5E Limassol 3040 Cyprus Tel: +35725 368 683 Email: info@gk-lawfirm.com Web: gk-lawfirm.com Real Estate in Cyprus: An Introduction The real estate sector was worth EUR3.1 bil - lion in construction contracts in late 2024. In a speech at the Annual General Assembly of the Cyprus Property Developers Association on 12 December 2024, the President of the Republic called construction the “engine” of the Cyprus economy, confirming its contribution to busi - ness growth. The University of Cyprus Economic Research Centre reported in January 2025 that “[r]eal GDP growth in Cyprus is estimated to have accelerated from 2.6% in 2023 to 3.7% in 2025 and 3.0% in 2026” . The report notes increased construction investment and stronger business confidence in services and construction. Infla - tion has shown significant deceleration, with a downward trend in interest rates. Nevertheless, the Royal Institute for Chartered Surveyors (RICS) indicates that most asset cat - egories changed little during the third quarter of 2024 compared with the previous quarter. The notable exception was apartments, which showed a substantial increase year over year. Therefore, only “cautiously optimistic mood” is recommended. This guide outlines the trends and developments in Cyprus real estate for 2025, relating them to current comprehensive reforms and the legal, financial and sociopolitical contexts that have defined the year.
Current issues Trends
Currently, the market is investing in short-term rentals (short-term holiday accommodation and homestays): hotels or self-service apartments, the so-called “Airbnbs” . Self-service apartment rentals happen mainly through Airbnb, Booking.com and private com - panies that own self-service apartments. In ear - lier years, private individuals rented property for such purposes. This does not happen so much now because of legislation interference. The Regulation of Establishment and Opera - tion of Hotels and Tourist Accommodation Law 34(I)/2019 covers self-service apartments and requires licensing, registration for tax and moni - toring purposes and compliance with minimum quality standards. An Airbnb should have at least a living room and a bedroom (these can be joined, studio-like), a ventilated kitchen area and a bathroom. For three bedrooms and above, the unit must have two bathrooms. Moreover, foreign companies arrange their employees’ accommodation by renting flats exclusively. The construction sector has attract - ed foreign investment, with foreign developers and construction companies coming to Cyprus
308 CHAMBERS.COM
Powered by FlippingBook