Cypriot construction sector recovery contingent on regional factors, developer says

Andreas Michael, the owner and managing director of CyView Developers, recently shared insights into the economic outlook and prospects for the construction sector in Cyprus for 2024, including how the country is affected by regional conflicts.

Speaking to local outlet InBusinessNews, Michael emphasised the critical role of external factors, stating that “the recovery of construction activity in Cyprus for the year hinges largely on the stabilisation of external factors affecting the country’s economy and the reduction of inflation”.

“If these conditions are met, a significant recovery in construction activity is expected, with a focus on both the private and public sectors,” he added.

Moreover, he noted the importance of the rising number of foreign companies settling on the island, saying that “this phenomenon increases demand in construction and real estate, creating business opportunities and new jobs”.

Despite acknowledging the resilience of the construction industry and the real estate sector in uncertain economic times, Michael highlighted several challenges faced by the construction industry.

“Changes in legislation, such as environmental regulations and safety requirements, may have necessitated adjustments and investments by businesses,” he stated.

“The difficulty in completing projects on time and with quality due to a lack of skilled labour,” he added.

Addressing these challenges, Michael stressed the need for strategic approaches, such as “the careful search for new sources of materials, constant investment in training and modernisation of the workforce, the application of new technologies, and close cooperation with competent authorities to streamline procedures following legislative requirements”.

He also noted the ongoing transformation of the construction sector, stating that “technology and artificial intelligence fundamentally shape processes and enhance performance, safety, and sustainability”.

The interview further highlighted the geopolitical context of Cyprus, noting its strategic position in the Eastern Mediterranean, close to areas with strong geopolitical tensions.

Michael also referenced estimates from the Finance Ministry for 2024. According to the ministry, Cyprus’ GDP is projected to increase by approximately 3 per cent, while unemployment and inflation are expected to continue decreasing.