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Cyprus Developers Intensify Hunt for Land Amid Rising Demand for Apartments

As demand for residential apartments in Cyprus continues to surge, developers are ramping up efforts to secure land for new projects, particularly in prime urban areas. The real estate sector has seen a significant increase in interest from both local and international buyers, driving developers to actively seek available plots to accommodate the growing demand.

This trend is most evident in cities like Limassol and Nicosia, where land for new apartment developments is becoming increasingly scarce. The scarcity has led to a highly competitive market, with developers scrambling to secure strategic plots that will allow them to meet the high demand for residential units.

Urbanisation and Shifts in Market Dynamics

The intensification of the search for land is driven by several factors. Urbanisation is one of the primary forces behind the rising demand for apartments, as more people move to city centres in search of better employment opportunities and lifestyle conveniences. This demographic shift has created a surge in the need for modern, well-located housing.

Moreover, the demand for apartments has been further fuelled by changes in investment patterns, particularly from international buyers. Cyprus has long attracted foreign investors due to its favourable tax policies and residency-by-investment schemes, which have led to an influx of capital into the property market. Developers are now racing to keep up with this demand by increasing the supply of apartment units.

The Challenge of Limited Land Availability

However, the rapid urbanisation and influx of foreign investment have contributed to a pressing issue: the availability of land suitable for large-scale apartment projects is becoming increasingly limited, particularly in high-demand areas like Limassol. This scarcity is pushing developers to consider alternative solutions, such as redeveloping older properties or purchasing smaller plots in less central locations.

This land shortage has also resulted in a rise in property prices, both for undeveloped land and for finished apartments. Developers face growing pressure to find cost-effective ways to deliver new projects without sacrificing quality, especially as construction costs remain high due to inflation and supply chain disruptions.

Adapting to Market Challenges

In response to these challenges, many developers are exploring new strategies. Some are focusing on mixed-use developments that combine residential, commercial, and recreational spaces, offering added value to potential buyers. Others are shifting their focus to smaller cities or suburban areas, where land is more affordable and available.

Despite the obstacles, the outlook for Cyprus’ property market remains positive. The steady demand for apartments, particularly from foreign investors, continues to fuel growth in the sector. As developers adapt to the challenges of limited land availability and rising construction costs, they are likely to innovate further, creating new opportunities in both the residential and commercial real estate markets.

Revaia Closes €250M Growth Fund To Fuel European And Israeli Startups

Revaia, Europe’s largest all-women-led venture capital firm, has successfully closed its second growth fund at €250 million, over a year after securing the first €150 million tranche. Founded in 2019 by Elina Berrebi and Alice Albizzati, the Paris-based VC firm focuses on scaling European and Israeli startups in their Series B stages and beyond.

The firm, which has already backed prominent companies like Algolia, now valued at $2.3 billion, and cloud call center Aircall, follows a sector-agnostic approach but gravitates toward B2B companies that prioritize sustainability. Revaia ensures its investments meet Environmental, Social, and Governance (ESG) criteria, from energy usage to workplace relations and governance practices.

The new €250M fund, designed to back 12 companies, will allocate investments between €10 million and €30 million, with a third of the capital reserved for follow-on investments and M&A opportunities. Six investments have already been made, signaling the fund’s active deployment.

Overcoming A Tough Market

Despite a challenging fundraising environment, Revaia’s track record convinced investors to commit to the new fund. Albizzati points out that their portfolio companies have grown on average 4x since their initial investments. “Fundraising is in slow motion,” she admits, but she adds that platforms like Revaia, with proven performance, continue to stand out in a market dominated by a few big players.

The last year saw large global VC firms like Balderton and Index raising funds in the billions. Nevertheless, Revaia’s backing from key investors such as the French public bank Bpifrance, as well as new LPs like JP Morgan, the European Investment Fund (EIF), and BNP Paribas Cardif, illustrates strong institutional confidence. Revaia’s international LP base has also grown, now comprising 30% of the fund, with notable European and US backers.

Political Shifts And European Growth

Despite global challenges, Albizzati believes that recent political shifts, particularly the US’s ‘America First’ rhetoric under former President Donald Trump, have reinforced the need for more European capital. “Our thesis has always been that Europe needs more late-stage and growth funds to support companies, especially as they scale,” she says. “The current political context validates this need even more.”

With its growing presence and commitment to backing sustainable growth, Revaia is positioning itself as a key player in Europe’s venture capital landscape, navigating an increasingly polarized market with a clear focus on building local champions.

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