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Cyprus On Track For Robust Economic Growth: New Projections Reveal Positive Trends

In a significant update, credit rating agency Morningstar DBRS has revised its economic projections for Cyprus, showcasing a notably positive outlook for the nation’s economy.As per the latest forecasts, Cyprus is poised for a stronger economic trajectory, with the agency enhancing its 2025 GDP growth expectations by 0.3 percentage points, now anticipating a total expansion of 3.1%.

The unemployment figures also indicate good news, with predictions of a reduction to 4.9% in 2025—a 0.2 percentage point improvement from December’s forecast. This trend is expected to carry into 2026, maintaining a 4.9% rate.

Compared to other European countries, Cyprus is projected to outpace the average growth rate, joining the ranks of nations like Denmark, Spain, and Malta in swift economic progression. The surge is attributed to robust net export growth, favorable domestic investment conditions, and increasing consumer demand. These are encouraging signs for anyone considering investing in Cyprus, especially with its reopened digital nomad visa applications.

Recent upgrades in Cyprus’ credit rating—from BBB (high) to A (low) with a positive outlook—underscore the resilience and potential of its economy. Key factors include significant debt reduction, with public debt expected to decline from 96.5% of GDP in 2021 to 56.7% by 2026, supported by strong economic growth and fiscal surpluses.

However, future improvements depend on sustained debt reduction and resilience against geopolitical and fiscal challenges. A potential downgrade might occur if public debt or banking liabilities rise sharply.

These forecasts highlight the optimistic economic atmosphere in Cyprus, making it an attractive spot for potential investments and financial activities.

€50 Million Luxury Resort Planned For Ayia Napa

Ayia Napa could strengthen its position in the premium tourism market with a proposed €50 million mixed-use resort combining a hotel, serviced apartments, luxury bungalows and a beach club.

Aesara Investments Ltd has submitted an information form to the Department of Environment for a development to operate under the name Atlantica Wavemaster Hospitality. The project is planned for the Limnara area of Ayia Napa, along the coast south of Kryou Nerou Avenue, between the town centre and Cape Greco.

Hotel, Apartments And Luxury Bungalows

The proposed resort will include a 324-room hotel with capacity for 648 guests, alongside a condo-hotel building containing 20 one- and two-bedroom apartments. Facilities are planned to include restaurants, bars, cafés, a spa with an indoor pool, a gym, shops, a multipurpose hall, a children’s club and a cinema.

A further 33 three-level luxury bungalows, each designed for two guests and featuring a private swimming pool, are planned for the southern part of the site. A beach club with a restaurant and an outdoor pool complex covering more than 6,300 square metres will also form part of the development.

The project includes 321 parking spaces, including 12 for people with disabilities, and 14,196 square metres of landscaped green space featuring local plant species.

Seasonal Hotel Operations And Year-Round Residences

The hotel is expected to operate from March to November, with peak occupancy during the summer season. The condo-hotel apartments, meanwhile, will be available for sale or long-term rental and intended for year-round residence. Owners and tenants will also have access to the resort’s facilities, including its pools, restaurants and fitness areas.

Construction is expected to take 24 months once the required permits are secured. At the busiest stage, the project could employ around 100 workers per day.

Environmental Restrictions Near Cape Greco

The site’s proximity to protected Natura 2000 areas has prompted strict environmental requirements. The Cape Greco Special Protection Area borders the site to the south, while a Special Area of Conservation lies approximately 50 metres away.

Conditions imposed by the Department of Environment include a maximum building height of five floors, or 18.5 metres, and restrictions on permanent structures near the coastline. The project must also use spider-web type glazing and low-intensity lighting to minimise disturbance to local birdlife.

According to the project’s consultants, the design has been prepared to comply with the environmental conditions and the final report on cumulative impacts for the Cape Greco Special Protection Area. The hotel and apartment building are positioned in the central and northern parts of the plot, away from the shoreline.

Within the designated no-build zone, located 40 metres from the boundary of the beach protection zone, only swimming pools are planned. The consultants state that these are not expected to affect protected species in the area.

Aretilaw firm
The Future Forbes Realty Global Properties
eCredo
Uol

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