The construction sector in Cyprus is a crucial part of the country’s economy, contributing around 15-17% to the GDP and providing employment for approximately 43,000 individuals. It plays a vital role in transforming Cyprus into a regional business and investment hub, attracting foreign buyers and supporting economic growth.
What is the role of the construction sector in Cyprus’s economy?
The construction sector is a vital component of Cyprus’s economy, contributing about 15-17% to the country’s GDP. It supports economic growth, enhances employment with around 43,000 jobs, and attracts foreign investment, with 46% of property transactions involving foreign buyers in early 2023. The industry also plays a key role in transforming Cyprus into a regional business and investment hub.
The Backbone of Cyprus Economy – Real Estate and Construction
The President of the Cyprus Land and Building Developers Association (LBDA), Michalis Hadjipanayiotou, recently shed light on the crucial role the construction sector plays in Cyprus’s economy. His remarks came during the LBDA’s annual general assembly on November 16, which coincided with the organization’s 40th anniversary.
Hadjipanayiotou emphasized the construction industry’s resilience, having weathered numerous challenges over the past four decades while undergoing substantial growth, evolution, and modernization. He proudly stated that the association, with its abundant expertise, has consistently collaborated with relevant authorities, contributing effectively to policy-making and advocating for the industry’s modernization.
Highlighting the sector’s significance, Hadjipanayiotou mentioned its consistent contribution of around 15 to 17 percent to the country’s Gross Domestic Product (GDP). The real estate and construction industry not only propels economic growth but also bolsters employment, with nearly 43,000 individuals, predominantly Cypriots, working in the field according to 2023 data from the Department of Social Insurance.
Cyprus: A Developing Hub for Business and Investment
The LBDA president also discussed the role of the construction sector in shaping modern Cyprus. He outlined the industry’s achievements, such as developing marinas, golf courses, and modern residential and commercial properties, which have played a part in transforming Cyprus into a business and investment hub in the region.
Despite facing significant economic, health, and geopolitical challenges in recent years, the construction sector has displayed notable adaptability and resilience. This was evident in its sustained contribution to the GDP and its ability to maintain a stable employment rate within the industry during tumultuous times.
Hadjipanayiotou also highlighted the industry’s dynamic role in attracting foreign investment. He cited that 46 percent of property transactions in the first eight months of 2023 involved foreign buyers. The state’s incentives for attracting foreign companies, including headquartering strategies, have been instrumental in this positive trend.
Facing Challenges and Looking to the Future
While celebrating the industry’s successes, Hadjipanayiotou did not shy away from addressing the challenges. He brought attention to issues such as the need for licensing system upgrades, tackling labor shortages, and promoting sustainable construction to align with the ‘Fit for 55’ environmental objectives.
The construction sector’s growth and its significant impact on employment enhancement through the creation of new, quality jobs were also discussed. Hadjipanayiotou advocated for a joint effort among all stakeholders and the Ministry of Interior to modernize the sector, creating a conducive environment for investors and enhancing living conditions in Cyprus.
As the assembly came to an end, the outgoing President expressed gratitude to the members for their unwavering support and remained optimistic about the industry’s future, pledging ongoing support for its improvement.
Navigating the Digital World
In a separate yet related note, the discussion surrounding the digital presence of businesses took center stage. With the world increasingly moving online, businesses have had to adapt to maintain their visibility and reach their customers effectively.
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To summarize, the Cyprus construction sector stands as a testament to the island’s economic fortitude and potential for future growth. Through collaboration, innovation, and strategic planning, the industry continues to pave the way for Cyprus’s development, even amidst a rapidly evolving global landscape.
Quick Recap
- The construction sector in Cyprus contributes around 15-17% to the country’s GDP and provides employment for approximately 43,000 individuals.
- The industry attracts foreign buyers, with 46% of property transactions involving foreign investors.
- The construction sector plays a vital role in transforming Cyprus into a regional business and investment hub.
- The President of the Cyprus Land and Building Developers Association emphasized the industry’s resilience and its consistent contribution to the GDP.
- The industry faces challenges such as upgrading licensing systems, tackling labor shortages, and promoting sustainable construction.
