Alarm bells ringing: real estate construction on edgeTo translate the speech, click on the microphone.

Market experts warn of a possible overheating of the economy as Cyprus turns into one huge construction site, driven by a plethora of projects backed by investment from Israeli companies, despite the war with Hamas. They emphasize that Cyprus is a safe environment for Israelis and expect a further increase in their activity after the end of the conflict. However, they draw attention to the potential overheating of the real estate market due to the large number of private projects and the unprecedented influx of government work, which are affecting the supply situation while demand is rising.

Recent data from the Real Estate Registry regarding sales documents for the first''The ten months of 2023 not only confirm the resilience of the Cypriot real estate market, but also highlight fears of overheating. According to the latest figures, the ten month period marked the best performance of the industry since 2008, with 1,825 sales made. These figures represent a substantial 36.2% year-on-year increase, with all districts except Nicosia (8% increase) showing double-digit growth. In particular, Larnaca stands out with an impressive 32% increase compared to last year.

Michalis Zavos, board member of the Cyprus Land and Building Developments Association and executive director of Group D. Zavos

concludes that the real estate market continues its upward trend and expects about 20% annual growth. He''highlights the favorable conditions in Cyprus as a safe investment center, especially for foreigners in the Mediterranean region. "That's why we are Plan B for our neighbors who are looking for a second home," says Zavos.

President of the Federation of Building Contractors Stelios Gavriel

confirms the upward trend in the construction sector and attributes its growth to the absorption of increased construction costs by developers and the steady pace of market development. Gavriel recognizes the significant''s contribution of government projects, funded by a €1.2bn recovery and resilience fund, to the sector's expansion and anticipates that the government will release many projects to the market in the new year. "The construction industry is under pressure due to increased demand and construction companies' machinery and equipment being fully utilized; contractors are running multiple projects," he says. He says large government projects involve joint ventures between two or three companies and rejects claims that the government favors certain contracting firms.

Georgy Chrysochos, CEO of Cyfield Group

notes that despite a temporary drop in activity during the outbreak of the war in'The situation is now back to the level of purchases and sales before the war. Chrysochos argues that high real estate prices in Israel make investors prefer Cyprus, where prices are more attractive. He emphasizes fears of a possible overheating of the market due to the large amount of government work in all areas. He notes the strong demand for residential and office space, leading to a surge of private projects in the private sector and revealing difficulties such as labor and equipment shortages in the construction industry. Chrysochos suggests that the government limit the number of projects placed on the market to prevent possible overheating of the industry.