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Cyprus Bets On Construction As A Pillar Of Sustainable Growth And Housing Reform

President Nikos Christodoulides has positioned Cyprus’ construction sector at the heart of the country’s transition to a more sustainable economy, describing it as a key driver of housing supply, investment and long-term growth.

Construction At The Centre Of Economic Strategy

Speaking at a dinner hosted by the Cyprus Association of Building Contractors (OSEOK) in Nicosia, Christodoulides said the transition to a greener development model requires close cooperation between the government and the private sector.

Construction, he said, contributes far beyond its share of economic output by supporting employment, regional development and the infrastructure on which communities and businesses depend.

At the same time, Cyprus is undergoing a period of economic and technological transformation that demands a more flexible and efficient public sector. According to the president, the government is pursuing reforms to modernise public services, reduce bureaucracy and accelerate investment while supporting broader social objectives.

Faster Permits To Boost Housing

A central part of that effort is the reform of the development licensing system led by the Interior Ministry. The initiative aims to simplify procedures, expand digital services and introduce clear processing deadlines without compromising transparency or safety standards.

Christodoulides said the changes are already producing results, with permits issued for nearly 3,000 residential units within 40 working days and around 1,000 apartment buildings within 80 working days.

“The significant acceleration in the issuance of permits for new residential developments proves that when the state wishes, it can operate more effectively,” he said. “That strengthens competitiveness and helps address social challenges.”

Housing Remains A Priority

The president described access to affordable, quality housing as one of Cyprus’ biggest challenges, particularly for young people and young families.

He said the government’s housing strategy combines financial incentives, targeted support schemes and institutional reforms designed to increase housing supply. As part of that effort, the Cyprus Land Development Organisation has resumed operations with new financial support and initiatives after becoming largely inactive following 2022.

Christodoulides stressed that those policies depend on a strong construction industry, describing OSEOK as a strategic partner in expanding housing supply, containing construction costs and supporting sustainable residential development.

Building For The Future

Looking ahead, the president said the sector’s long-term competitiveness will increasingly depend on digitalisation, energy-efficient construction, innovative building materials and modern technologies.

He added that sustainable development should be measured not only by economic growth, but also by the quality of infrastructure, environmental protection and improvements to citizens’ quality of life.

Concluding his remarks, Christodoulides called for continued cooperation between the state and the construction industry, saying trust, transparency and regular dialogue would remain essential to delivering modern infrastructure, expanding housing opportunities and supporting Cyprus’ long-term development.

Eurobank Wins Two Euromoney Awards Following Cyprus Merger

Eurobank has been named Cyprus’ Best Bank for 2026 by Euromoney, while also receiving the award for Best Bank for Large Corporates at the publication’s latest Awards for Excellence.

Merger Marks A Milestone

The awards recognise the bank’s performance during 2025, a year marked by the completion of the legal merger between Hellenic Bank and Eurobank Cyprus. The transaction created Eurobank Limited, which the group says is now Cyprus’ largest banking and insurance organisation, with assets exceeding €28 billion.

Euromoney’s Awards for Excellence evaluate banks’ performance over the previous calendar year, with this edition covering January 1 to December 31, 2025.

Lending, Customers And Digital Growth

Eurobank said its business lending portfolio expanded by around 17 per cent during 2025, while its customer base grew to more than 710,000 retail clients and 11,500 business customers.

The bank also continued its digital expansion, saying more than 96 per cent of transactions are now completed through digital channels, and most financing applications are submitted via its mobile app.

Expanding International Presence

Eurobank also highlighted the opening of its first representative office in India, describing the move as a step toward strengthening business links between Cyprus and India while supporting Cyprus’ role as a gateway to the European Union for Indian businesses and investors.

According to the bank, Euromoney recognised not only the successful completion of the merger but also its lending growth, digital transformation and contribution to Cyprus’ position as an international business and investment hub.

CEO On The Awards

“The Euromoney awards confirm Eurobank’s strong momentum and the successful implementation of our group’s strategy in Cyprus,” Chief Executive Michalis Louis said.

He said the merger strengthened the bank’s ability to support households, businesses and the wider economy, while highlighting continued investment in digital services and the opening of the representative office in India as key milestones during the year.

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