Cyprus' economic growth depends on the construction sector.
President of the Cyprus Landowners and Builders Association (LBDA) Michalis Hadjipanayiotou on Thursday highlighted the resilience of the local real estate sector, reflected in its ability to overcome many challenges and continue to contribute to the country's economic growth. Hadjipanayiotou's comments were made during his address at the association's annual general assembly held on Nov. 16.
"Over these 40 years, our industry has experienced significant growth, evolution and modernization," he said, noting, however, that "it has also faced small and very large challenges and difficulties." "With each new challenge, our association has been there for us, drawing on the knowledge and experience of its members, as well as external issues, it''assisted with relevant bodies in formulating positions and proposals,' he added.
He said the association has always sought to 'strengthen efforts to modernize the industry while remaining a pillar of economic development'.
The assembly, which celebrated the 40th anniversary of the Cyprus Landowners and Builders Association (LBDA), was attended by several prominent figures. Among them were President Nicos Christodoulides, President of the Cyprus Chamber of Science and Technology (ETEK) Constantine Constanti and President of the Federation of Employers and Industrialists (OEV) Antonis Antoniou.
Addressing the assembly, Hadjipanayiotou emphasized the importance of the role of the real estate and construction industry in the country's economic development and progress. He''praised the resilience of the sector in the face of challenges, pointing to its significant contribution through attracting investment, employing thousands of people and helping in the evolution of Cyprus.
'We are particularly proud that our members of the association have collectively contributed to over 80% of the real estate market, creating modern Cyprus. They have shaped the modern image of our country. An image that has made Cyprus a regional business and investment center," Hadjipanayiotou said. "Marinas, golf courses, office spaces, modern and eco-friendly residential and commercial properties, as well as small and large-scale development sites are just a few examples of the many developments that make up the new Cyprus," he added.
Hadjipanayiotou explained that over the last four''s year, the construction industry has faced a number of major challenges, including economic crises, health crises and geopolitical events with global impact. "Each time, we have had to adapt to new circumstances and create new perspectives to mitigate both the industry and the Cypriot economy," he said. "Despite the challenges and obstacles, the industry has shown flexibility and resilience in staying afloat," he added.
He explained that the construction sector had contributed significantly to the country's development, noting that its share of GDP averaged between 15 and 17 percent. "This confirms the significant role it plays in the Cypriot economy," he said, noting that "even in the conditions of the aforementioned''changes and challenges its contribution to GDP remained at the same high level, indicating its strong foundations'.
He also touched on the contribution of the construction sector to employment in Cyprus. Referring to State Social Insurance Service data for 2023, he said that the construction industry employs almost 43,000 people, most of whom are Cypriot nationals.
He continued, highlighting the fact that "our industry plays a catalyzing role in attracting foreign investment. "By offering attractive prospects for real estate investment that meets the needs and desires of every buyer, we have achieved growth and evolution of the market," he added. He noted that one telling aspect of this foreign investment dynamic is that 46 percent of real estate transactions in the first eight months of 2023 originate from foreign buyers.
He acknowledged that the incentives provided by the government to attract foreign companies to''Cyprus, known as head offices, have played a crucial role in this positive development. "Cyprus is now evolving into one of the most important destinations for head offices and a significant center for services and technology companies," Hadjipanayiotou said. "With these facts in front of us, we can confidently say that Cyprus can and should become a destination that attracts capable people from a wide region, bringing together quality of life, work and entertainment," he added.
In addition, Hadjipanayiotou explained that in order to achieve this goal, all stakeholders must work together to modernize the entire industry and create a friendlier environment for investors, companies and their employees, both local and foreign''buyers. Hadjipanayiotu also highlighted several challenges that hinder the smooth functioning of the real estate sector, including modernizing the licensing system, finding solutions to labor shortages and promoting sustainable construction in line with the goals of the Fit for 55 package. He emphasized that addressing these difficulties and challenges requires coordination and dialogue among all stakeholders and the Ministry of Interior. He pledged that the association will use the experience of its members to support the executive and legislature in the coming years.
Concluding his remarks, the outgoing President thanked the members of the association for their support, expressing confidence in passing on a sustainable''industry as a result of collective efforts. He pledged to remain active in working for the further improvement of the sector. The Assembly concluded with a commitment to work together to guide the real estate and construction sector in Cyprus to continue to grow and modernize.
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