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Revitalizing The Capital: Strategic Initiatives To Transform Nicosia’s Urban Core

Participatory Dialogue For Urban Transformation

A total of 103 proposals were submitted during the Structured Democratic Dialogue Workshop, jointly organized by ETEK and the Nicosia Municipality, focusing on upgrading the center of the capital. Participants identified critical, transformative interventions such as taxing underutilized properties, expediting licensing procedures, enhancing urban planning incentives, and promoting the city center’s brand as pivotal to revitalizing Nicosia.

Defining Strategic Priorities Through Collaboration

According to ETEK, the primary objective of the workshop was to formulate realistic actions aimed at boosting foot traffic, commercial viability, and the long-term sustainability of the urban core. Among the prioritized proposals was the idea of providing state-funded financial incentives to restore inactive shops—an initiative deemed essential for the regeneration of Nicosia.

Enhancing Connectivity And Urban Mobility

The discussions also highlighted the potential creation of an integrated park stretching from Paphos Gate to Ammochostos Gate, leveraging both a green belt and a continuous urban arc. In addition, improved express transit routes in collaboration with major private organizations and public authorities were considered a positive development.

Rethinking Public Transport And Traffic Management

Participants were in favor of establishing new urban and intercity bus stations to replace the existing station at the Solomos Monument. This intervention is expected to alleviate congestion along Makariou Avenue, alleviating concerns raised by local business owners about the impact of dedicating lanes to buses. Further enhancements in public transportation services are projected to refine the overall urban mobility framework.

Integrative Urban Planning And Tactical Interventions

Notably, workshop conclusions pointed out that proposals designed solely to open Makariou Avenue to private vehicles did not sufficiently integrate with the overarching strategy to enhance connectivity, visitor engagement, and commercial development. With only 12 votes backing such ideas, there is a clear call for prioritizing complementary, interim measures. In the words of ETEK President, ‘Until a comprehensive urban management plan is finalized, targeted, low-cost, high-impact interventions should be deployed — from increased shading and greenery to coordinated public transport timetabling, subsidized short-term parking, reconfigured bus routes, repositioning central endpoints, and scheduled cultural and business events.’

Specific Policy Recommendations

ETEK President Konstantinos Konstantis, echoing diverse stakeholder perspectives, outlined several strategic policy recommendations which include:

  • Revising and updating the Sustainable Urban Mobility Plan to reflect current realities, integrating new proposals within a broader regulatory framework for the city center.
  • Imposing a tax on dormant properties in the urban core with revenues reinvested in rejuvenation projects.
  • Implementing a fast-track licensing process for adaptive reuse and minor urban interventions, ensuring compliance with standards for heritage conservation.
  • Simplifying and reinforcing urban planning incentives to ensure clear, actionable guidelines.
  • Developing a cohesive branding and marketing strategy to promote a unified city image, supported by targeted campaigns for small and medium-scale investments.
  • Adopting the comprehensive measures highlighted during the workshop, including integrated connectivity projects, sustainable green corridors, transparent and participatory planning processes, and a robust monitoring mechanism for urban progress.

Vision For A Sustainable Urban Center

Additional workshop calls emphasized creating a vibrant urban core that is active daily, characterized by consistent public spaces, mixed-use development, and an atmosphere of cultural innovation and environmental quality. Participants envisioned a continuous green corridor—enhancing both microclimatic conditions and urban livability—and definitive links connecting neighborhoods and major hubs to sustain visitor flow and pedestrian activity.

Conclusion

The workshop, which saw 25 participants contributing 103 proposals—ranging from business owners to residents not directly impacted—illustrated a remarkable collaborative momentum. Despite initial controversy over decisions like opening Makariou Avenue to private vehicles, the discussion laid out a strategic blueprint to avoid fragmented initiatives. As one expert noted, the risk of isolated projects undermining the city’s potential reinforces the need for coordinated, networked investments. Nicosia’s path forward demands consistent, interlinked projects where every initiative anchors and is reinforced by others, ultimately creating a resilient and thriving urban center.

Bank of Cyprus Upgrade Signals Fresh Optimism For Greek And Cypriot Banks

Regional Banks Enter A More Favorable Cycle

Bank of Cyprus and Eurobank are well positioned to benefit from a renewed re-rating of Greek and Cypriot bank stocks, according to Cyprus-based investment firm Roemer Capital, which upgraded Bank of Cyprus to a buy rating and reaffirmed its positive view on Eurobank.

The firm cited easing geopolitical tensions, resilient economic growth in Greece and Cyprus, lower funding costs and Greece’s expected transition to developed-market status as the main factors supporting the sector.

Roemer Capital also lowered its cost of equity assumptions, updated its forecasts following first-quarter 2026 results and extended its valuation horizon to the end of 2027, raising target prices across its banking coverage.

Bank Of Cyprus Gets The Largest Upgrade

Bank of Cyprus received the biggest revision, with Roemer Capital upgrading the stock from hold to buy and setting a target price of €11.10, implying potential total upside of 27%.

The firm highlighted the bank’s strong capital generation, profitability and projected 100% dividend payout, describing it as the strongest capital-return story among the banks under coverage. Roemer Capital maintained its buy rating on Eurobank, assigning a target price of €4.90 and forecasting potential upside of 28%. The report said the bank is well placed to benefit from loan growth, improving operating performance and merger-and-acquisition synergies.

National Bank of Greece and Piraeus Bank also retained buy ratings, with expected returns ranging from 25% to 36%. Optima Bank was upgraded to buy, while Alpha Bank remained at hold on valuation grounds.

Why Growth Still Sets The Region Apart

According to Roemer Capital, Greek and Cypriot banks continue to benefit from stronger economic fundamentals than many western European peers. The report pointed to faster economic growth, healthier balance sheets, low levels of non-performing exposures, capital ratios approaching 20% and strong customer deposit bases.

Analysts expect performing loans across the sector to grow at a compound annual rate of 6% to 8% through 2028, supported by private investment, digitalisation, green manufacturing, supply-chain expansion and a gradual recovery in household lending.

The report also said the conclusion of lending under the EU Recovery and Resilience Facility is unlikely to materially affect credit growth, as banks have already shifted back towards traditional commercial lending. Roemer Capital expects Euribor to remain between 2.2% and 2.5%, a level it believes should support both lending activity and net interest margins.

Geopolitics, Valuation And Market Structure Support The Case

The report said improving geopolitical conditions have strengthened the investment outlook, noting that Brent crude prices have largely returned to pre-war levels while Greek government bond yields have stabilised at around 3.5%. Although geopolitical risks remain, Roemer Capital believes the likelihood of a major inflationary shock or significant pressure on bank profitability has eased.

Another important catalyst identified by the firm is Greece’s expected promotion to developed-market status by FTSE Russell, STOXX and MSCI over the coming months.

According to the report, the reclassification should improve liquidity and attract a broader base of international investors. Roemer Capital also said Euronext’s acquisition of the Athens Exchange is expected to strengthen market infrastructure and increase international visibility, particularly for Bank of Cyprus and Optima Bank.

The firm noted that Bank of Cyprus has already benefited from its Athens listing, with average daily trading value increasing from less than €400,000 before its September 2024 move to nearly €6 million afterwards.

Economic Momentum Remains A Core Tailwind

Roemer Capital said both Greece and Cyprus have moved beyond post-crisis recovery and are now supported by private-sector-led growth. For Cyprus, the report highlighted recent tax reform and efforts to simplify the legal and regulatory framework, while also noting that limited foreign banking competition continues to support domestic lenders.

Overall, Roemer Capital expects Greek and Cypriot banks to remain well-positioned for profitable loan growth over the coming years.

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