Real Estate

Cyprus must move away from property-led growth model, Cyprus Forum hears - Philenews

Google News Cyprus Real Estate · 2026-09-29

AI SUMMARY

• What happened: Experts at the Cyprus Forum emphasized the urgent need for Cyprus to transition away from its traditional property-led growth model towards a more diversified economic framework. • Why it matters: The reliance on the real estate sector has created vulnerabilities in the Cypriot economy, highlighting the necessity for diversification into sectors like technology, renewable energy, and tourism to ensure long-term stability and resilience. • What to watch next: Future policy decisions and strategic initiatives stemming from the forum's discussions will focus on promoting investment in various industries and implementing regulatory reforms to enhance the ease of doing business in Cyprus.

**Cyprus Must Transition from Property-Led Growth Model, Experts Advise at Cyprus Forum**

Nicosia, Cyprus – A recent discussion at the Cyprus Forum highlighted the urgent need for the island nation to shift away from its traditional property-led growth model. Experts and stakeholders gathered to address the sustainability of the current economic framework and propose alternative strategies to foster long-term growth.

The forum, which brought together policymakers, economists, and industry leaders, emphasized that reliance on the real estate sector has led to vulnerabilities in the Cypriot economy. The property market, while historically a significant contributor to economic growth, has shown signs of instability and over-dependence, particularly in light of global economic fluctuations and changing market dynamics.

Participants at the forum pointed out that the property sector's dominance has created an imbalance in the economy, with insufficient diversification into other sectors. This has raised concerns about the long-term viability of the current growth model, especially as external factors such as international interest rates and geopolitical tensions can adversely affect the real estate market.

The discussions underscored the importance of diversifying the economy to include sectors such as technology, renewable energy, and tourism, which could provide more stable and sustainable growth. Experts argued that investing in innovation and infrastructure in these areas could lead to job creation and enhance Cyprus's competitiveness on a global scale.

One of the key takeaways from the forum was the need for a comprehensive strategy that encourages investment in various industries while also supporting the existing real estate sector in a more balanced manner. This approach would not only mitigate risks associated with market fluctuations but also promote a more resilient economic environment.

In addition to diversification, the forum addressed the importance of regulatory reforms to support new business ventures and attract foreign investment. Streamlining bureaucratic processes and improving the ease of doing business in Cyprus were highlighted as critical steps toward fostering a more dynamic economic landscape.

The call for change comes at a time when many economies are reevaluating their growth strategies in response to the challenges posed by the COVID-19 pandemic and the ongoing shifts in global economic conditions. Cyprus, like many countries, is at a crossroads where it must decide how to best position itself for future growth.

As the discussions concluded, participants expressed a shared commitment to exploring new avenues for economic development. The consensus was clear: Cyprus must embrace a more diversified and sustainable growth model to ensure its economic resilience and prosperity in the years to come.

The Cyprus Forum serves as a platform for dialogue and collaboration among various stakeholders, aiming to address pressing economic issues and promote innovative solutions for the future. The insights gained from this gathering are expected to inform policy decisions and strategic initiatives moving forward.

In summary, the Cyprus Forum's discussions have brought to light the critical need for the island to move away from its property-led growth model. By focusing on diversification and regulatory reform, Cyprus can pave the way for a more sustainable and resilient economy that is better equipped to navigate the challenges of the future.

Source: Google News Cyprus Real Estate
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