Representatives of technology companies based in Limassol said recently that the cost of renting offices in the coastal city has risen sharply over the past year.
In some cases, rents are much higher than in London or Amsterdam. If this trend continues, he said, many companies will be forced to leave the Cypriot market.
The rising cost of renting office space in Limassol is the main obstacle to the further development of the IT and fintech sectors in Cyprus," technology company representatives stressed.
They also pointed to problems with education and public transport, and stressed the need for greater cooperation between universities and businesses in order to produce qualified professionals who can compete in the market.
For his part, the Head of the Sub-Ministry of Research, Innovation and Digital Policy, Nicodemos Damianou, said that the annual growth of the technology sector in Cyprus over the last 10 years has been around %. He stressed that the transformation of Cyprus into a technology hub is an achievable goal.
Christoforos Anaiotos, head of consulting firm DEAL, part of KPMG, said that according to the latest data, the direct economic benefit of IT and fintech companies in Cyprus is around €3.3 billion (12% of GDP) and €5.6 billion if indirect effects are taken into account. He therefore urged the Cypriot government to support this sector of the Cypriot economy. He also mentioned that % of employees in the IT sector are Cypriots, which contradicts the belief that only foreigners work in this sector.
AKEL MP Aristos Damianou also acknowledged the achievements of the sector. He said there was a need to cut red tape and reduce the absurd rent prices in Limassol. This applies to both office and residential premises.
It is shocking to me that businessmen have to go through various government agencies to build schools because the state cannot provide the necessary infrastructure for education on its own," said Damianou.
Finally, speaking about the attractiveness of Cyprus for technology companies, Elena Grigoryan, CEO of MY.GAMES, highlighted various factors that have made the island an attractive destination for foreign companies, including tax incentives and double taxation agreements. However, she noted that an updated intellectual property structure is essential to attract global tech giants. Grigoryan also highlighted the lack of office space to accommodate expanding companies.