Cyprus’s burgeoning technology sector is grappling with soaring office costs, particularly in Limassol, where prices reportedly surpass those in London and Amsterdam, industry leaders warned.
The issue emerged as a key obstacle to further growth in the Information and Communication Technology (ICT) sector during a panel discussion at the Cyprus Forum titled “Establishing Tech Island: Developing a Competitive Digital Economy for Cyprus”.
Deputy Minister of Research, Innovation, and Digital Policy, Nicodemos Damianou, highlighted the sector’s rapid growth, citing an average rate of around 10% over the past decade. “The goal of transforming Cyprus into a technology hub is not a distant and unattainable goal,” Damianos said.
A study presented by Christophoros Anagiotos, head of KPMG’s DEAL advisory services, estimated the sector’s direct contribution to the economy at €3.3 billion, or approximately 12% of the country’s gross value added. Including indirect effects, this figure rises to €5.6 billion.
However, Une Buracine, CEO of Payabl, raised concerns about expansion difficulties, stating, “The cost of offices is precisely higher than what we pay in London and the Netherlands, in some cases.”
Industry leaders also pointed to challenges in education, public transportation, and affordable housing. Elena Protsaskova, Director of Jetbrains, emphasised the need for stronger university-industry collaborations to prepare graduates for the competitive job market.
AKEL MP Aristos Damianou acknowledged the sector’s progress but called for reduced bureaucracy and described Limassol’s rental prices as “absurd” for both office and residential purposes.
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