Nicosia generates about 40 per cent of Cyprus’ GDP, mayor says

Nicosia, Cyprus. Nicosia accounts for roughly 40 per cent of Cyprus’ GDP, Mayor Charalambos Prountzos said while outlining the capital’s economic importance and municipal planning priorities.

Economic role and investment priorities

Addressing a Rotary Club presentation at Monte Parnasse restaurant, Prountzos put Nicosia’s population at around 300,000. He described it as Cyprus’ largest city when measured by infrastructure and financial assets.

He argued that property development in other parts of Cyprus did not necessarily make those areas business centres. Tourism, which other districts rely on more heavily, faced greater exposure to climate change and developments in the region, he said.

Prountzos described Nicosia as an undervalued capital, while recognising the constraints imposed by its geography and division. He said municipal responsibilities were more complicated than those in places primarily geared towards the summer season.

Discussing foreign investment, he said the municipality had tried to prevent Nicosia from becoming an opportunity for property investors. Instead, it had developed a local startup ecosystem aimed at Cypriot students. He acknowledged Cyprus’ current ranking of 45th for startup opportunity.

Migration, employment and crime

Prountzos said approximately 80,000 immigrants lived in Nicosia, with 85 per cent employed and 15 per cent earning high incomes. He said that profile differed sharply from Limassol’s.

Crime in the old town had dropped by 81 per cent, a decline he described as unprecedented. He also said Cyprus needed to reconcile economic opportunity with social cohesion.

Security responsibilities and the divided capital

The mayor described the municipality’s involvement in security preparations for the EU Council presidency as a major undertaking.

He also said he maintained regular contact with Turkish Cypriot mayor Mehmet Harmanci as part of efforts to overcome Nicosia’s division.