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Nicosia's old market reborn as tech hub fighting brain drain

Nicosia's old market reborn as tech hub fighting brain drain
Technology · 2026
Photo · Kai Lindgren for European Pulse
By Kai Lindgren Technology Editor Oct 30, 2026 3 min read

In the heart of Nicosia's old city, a former food market has been transformed into a gleaming hub for cutting-edge technology. The building, once abandoned and decaying, now hosts CYENS, a Centre of Excellence specialising in interactive media, smart systems, and emerging technologies. The urban regeneration project has been shortlisted among the EU's top social cohesion initiatives, a testament to its impact on the local community and beyond.

From market stalls to virtual reality

Partially funded by the European Union, CYENS employs around 110 people, mostly researchers, developers, and technicians. They work across multidisciplinary research groups, affiliated start-ups, and spin-offs, tackling more than 50 projects funded by European, national, and industry sources. The centre's mission is to become a regional hub for technology and knowledge transfer, and it is already making strides.

Computer scientist Panayiotis Charalambous leads a team using AI-driven tools and augmented and virtual reality to create visual content. Their projects include interactive urban maps that display real-time data on traffic, noise, and pollution, as well as digital reproductions of historical monuments that are otherwise inaccessible. "Virtual reality enables different modes of interaction with visual elements," Charalambous explains. "It allows you to be immersed in an environment that might be difficult to reach, whether due to remote location or mobility issues. Being immersed makes you feel like you're really there."

Another project lets children create their own theatrical scenes with actor avatars. Game engineer Ismail Hadjri describes the experience: "You can give the actors different emotional temperaments and actions, effectively creating your own play. There's also a stage designer table where you place objects, direct actors, and set spotlights."

The centre also develops hardware for motion sensing. Christos Ioannou, co-founder of spin-off Senssos, says their sensors are cheaper and easier to install than commercial systems, making them accessible for home rehabilitation or athletic training. "We measure real-time cadence, ground contact, heart rate, and other parameters to enhance performance and aid recovery," he adds.

Computer engineer Panayiotis Kyriakou, CTO of biomechanics company Darefore, highlights the practical benefits for athletes: "They can get real-time feedback while running, indoors or outdoors, without a coach, or analyse the data later with a coach or clinician."

CYENS was established to counter brain drain in Cyprus, a small EU member state with highly skilled engineers and researchers. CEO Yiorgos Chrysanthou believes technology is the key to diversifying the economy beyond tourism. "Cyprus is small and can't compete with heavy industry," he says. "The only way to move forward is to keep this critical mass of talent, build it, and expand it to create economic activity based on technology."

Software engineer Haris Psallidopoulos is applying AI-driven virtual reality to help farmers improve their techniques, showing the centre's reach extends beyond urban innovation. The transformation of the old market into a futuristic centre of excellence is a vivid example of how European funding can revitalise communities and foster innovation. As Cyprus continues to develop its energy sector, initiatives like CYENS are crucial for building a sustainable, knowledge-based economy.

The centre's success also resonates across the continent, where similar regeneration projects are being watched closely. With the EU's focus on social cohesion, CYENS stands out as a model for turning derelict spaces into engines of growth. As cyber threats rise and markets react to AI investments, Europe needs such centres to remain competitive. CYENS is not just a local success story; it's a blueprint for the continent's future.

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