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Cyprus has entered the gas era. Both recent and past developments testify that the oil and gas sector can bolster the Cypriot economy.
The next decade will be different from the cycles of the last three decades and the Danos company predicts an even a bigger demand growth.
The energy revolution is similar in opportunity and employment impact to the industrial revolution, but the major difference is that we now have a global economy instead of a national economy, and the magnitude of economic growth may be substantially greater than in the past.
The energy revolution has actually created more employment opportunities and the need for more space of many types.
Energy employment has created major demand for office space, more efficient inventory control has caused demand for large warehouse space, land-based retail continues to grow as people have more money to spend and apartments are in large demand from younger people, foreign investors and immigrants.
The Cyprus real estate market is performing well at present and is definitely a good place to invest for the future. There is a positive momentum and trend.
Cyprus – during the gas energy era that is coming, growth and production activity, will boost the real estate sector.
Intense demand for both commercial and residential real estate will drive the construction industry to a significant expansion.
Rapid economic growth is a welcome opportunity for any country, but one that can also come with growing pains.
Cyprus, though, will face many challenges resulting from booming development activities.
One obvious challenge is infrastructure, including a significant lack of buildings to provide housing and structures appropriate for conducting highly technical operations and business.
However, real estate solutions to these challenges are emerging as investors learn more about the long-term potential of these operations.
This evolving interest will help address the progress of residential and commercial real estate.
Egypt and Cyprus signed a deal that will eventually allow natural gas found in the Aphrodite field to be sold to mainland Europe, boosting plans to turn the Eastern Mediterranean into an energy hub.
Cyprus and Egypt are committed to establishing and maintaining good conditions for building a gas pipeline between the two countries, including the timely issuance of permits.
Socio-economic dimension
Development of the oil & gas sector in Cyprus continues unabated.
The recent discoveries of hydrocarbons within Cyprus’ EEZ and the massive discovery of the Zohr gas field in the Egyptian waters, which is very close to the Cypriot blocks, has attracted a lot of attention internationally and has created locally a lot of optimism about the future.
In addition to the stream of revenues from the future export of the island’s gas reserves, the emergence of this new industry and the possible direct foreign investment in significant infrastructure projects such as a liquefaction plant and the pipeline facilities will create the need for a great number of other support services.
All these are expected to lead to the creation of thousands of jobs, to boost the construction industry and property market as well as to have a favourable indirect effect on many other sectors of the economy such as financial and professional services.
Furthermore, it will alleviate the over-reliance of the economy on financial services and tourism and will diversify the risk of the economy in the eyes of foreign investors.
