'Luxury retail prosperity in Cyprus: the city of dreams and not the only reason'

The Mediterranean city promises a retail offer where "Avenue Montagne meets Via Monte Napoleone meets Ginza". The Cypriot real estate market has long been thriving, but the focus has been on the residential sector rather than retail. However, the first casino in Europe from Hong Kong-based Melco Resorts could open the door to luxury shopping opportunities.

The Mediterranean Dream City was built for about $650 million and joins Melco's other resort locations in Macau, Greater China and Manila in the Philippines. They helped generate revenue of $949 million in the three-month period ending June 2023 (up 220%) for the Nasdaq-listed company,''Chairman and CEO of which is Hong Kong billionaire Lawrence Ho.

The latest casino officially opened in the Zakaki district of Cyprus' second largest city, Limassol, on July 10, claiming to be Europe's first integrated resort with a significant 18,300 square feet of luxury retail space. In addition to the retail space, key features include a 14-story luxury hotel with 500 rooms and suites, an adventure park for families, an outdoor amphitheater and more than 740,000 square feet of meeting and exhibition space.

According to marketing blurb, the retail offering is a combination of "Avenue Montagne, Via Monte Napoleone and Ginza"; streets in Paris, Milan and Tokyo known for their branded''boutiques. Melco did not respond to emails about whether the Cypriot market is ready for such a luxury presence. According to the resort's website, "Our experts have handpicked the best fashion items the world has to offer.

The pros and cons of

There are differing views on the effect Dream City will have on the island. One prominent retailer with long-term experience in Cyprus is First Boutique. Ilya Loshak, CEO of Millya Group, which owns the chain of stores, told me, "While the opening of City of Dreams may attract more tourists, it is not known if they will be wealthy travelers. The location of the new casino is not a premium market, and I believe a high-status customer will be looking for a better place to stay''are still 27% higher than in the first quarter of 2022. Leading the way is Limassol with over €1.8 billion worth of house and apartment sales, while the capital Nicosia recorded the highest volume (40%) of land transactions in 2022.

BBF confirmed the hot climate in the real estate market and said that commercial and non-residential approvals increased in 2022 "and this trend will continue due to the influx of IT companies." The developer notes: "There has been an impressive 40% increase in non-residential approvals in 2022. This upward trend is expected to continue in the coming years, fueled by the influx of immigrants and the government's enticing incentives under the IP Box program to attract IT companies. This steady trend is poised''stimulate significant growth in real estate'.

Entertainment on a larger scale

The infusion of a burgeoning class of IT professionals and new projects, as well as the island's tourist trade, could stimulate demand for retail sales.