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Cyprus Developers Intensify Hunt for Land Amid Rising Demand for Apartments

by THEFUTURE.TEAM

September 16, 2024

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.

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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.

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Only 1% Of Cyprus Farms Use Precision Farming Technologies

Cyprus remains one of the European Union’s least digitised agricultural economies, with just 1% of farms using precision farming technologies in 2023, according to Eurostat.

The findings come as the EU continues to encourage the adoption of digital tools aimed at improving agricultural productivity, efficiency and sustainability.

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Internet Access Expands, But Digital Uptake Lags

Internet access has improved across the bloc, although adoption remains uneven. Eurostat found that 43% of EU farms had internet access in 2023, with northern and central European countries leading the way.

Denmark, Germany, Slovakia, Latvia, the Czech Republic and Austria all reported internet access rates above 90%.

Greater connectivity, however, has not translated into widespread digital adoption. Farm management information systems, which help farmers manage day-to-day operations, were used by only about 11% of EU farms. France was a notable exception, with around 60% of farms using the technology.

Precision Farming Concentrated In Larger Operations

Robotics adoption also remained relatively limited, with only about 7% of EU farms using robotic technologies. Overall, around 18% of farms with utilised agricultural area employed at least one precision farming technology or practice in 2023.

These included robotics for plant protection, band spraying, variable-rate application, precision crop monitoring and soil analysis. Despite representing fewer than one in five farms, these holdings accounted for around 44% of the EU’s utilised agricultural area.

The figures suggest that precision farming remains concentrated among larger agricultural businesses, where investment in digital technologies is typically easier to support.

Cyprus Lags Behind EU Leaders

Luxembourg, Finland and Estonia recorded the highest shares of utilised agricultural area managed by farms using precision farming technologies, each exceeding 75%.

At the other end of the ranking, Cyprus recorded just 1%, while Greece and Romania reported between 10% and 15%. The results indicate that Cyprus remains at an early stage of digital adoption in agriculture, even as precision farming becomes more widespread across parts of the European Union.