Cyprus property market strong but faces growing challenges

The Cyprus property market remains strong but faces structural weaknesses and rising costs that could affect its future development, according to speakers at this year’s Cyprus Property Show, where the government also outlined plans to revise key planning frameworks. The conference, held under the title “The present and future of property in Cyprus”, brought together government officials and representatives of the property, construction, engineering and investment sectors to discuss the market’s performance and challenges. The event heard that 21,387 property transfers were recorded across Cyprus in 2025, broadly unchanged from 2024, while the total value of transactions increased by about 10 per cent to €4.73 billion. Interior Minister Konstantinos Ioannou said the property sector extended well beyond construction and sales, linking it directly with the economy, investment, urban and rural development and quality of life. “The Cyprus property market remains strong,” Ioannou said in a speech read by Interior Ministry director-general Elikkos Elia. Ioannou said the government regarded housing as a major priority and was pursuing a comprehensive strategy aimed both at increasing the housing stock and strengthening citizens’ purchasing power. “The future of the property market is directly linked to housing policy,” he said. “We must view the housing issue in conjunction with development policy and urban planning,” Ioannou added. He said the government was therefore proceeding with the revision of local plans for the major urban areas and the Policy Statement, with the aim of creating a more modern, functional and flexible development framework that would address current needs and future challenges. Speaking on behalf of the director of the Department of Town Planning and Housing, first town planning officer Heraklis Achniotis said Cyprus was at an important point in the development of its planning framework. “We have before us a unique opportunity, the preparation and revision of the Policy Statement, the Local Plans for the four major urban centres and the plan for the island,” Achniotis said. He said the revisions should not be treated as a formal obligation, but as strategic tools for addressing shortcomings inherited from the past. “What are the prospects and, above all, what are the new challenges that will determine whether our choices will be sustainable for the next 20 to 30 years?” Achniotis asked. “Urban resilience is of decisive importance for the future,” he said, adding that Cyprus’s cities needed to be capable of withstanding shocks. The housing issue was also a major focus of the conference, with Cyprus Land Development Corporation (KOAG) director-general Eleni Symeonidou outlining the organisation’s role and the projects it is promoting to address housing needs. Engineers warn over dangerous buildings The president of the Scientific and Technical Chamber (Etek), Konstantinos Konstantis, also focused on housing policy and said the chamber had submitted a comprehensive memorandum on the issue in 2023. Some of Etek’s proposals had since been adopted, Konstantis said, but he added that Cyprus remained short of its wider housing objectives. He called for a unified strategy and a common objective centred on a property sector capable of continuing to develop while also producing better cities and a better quality of life. Particular attention was drawn to the condition of older and dangerous buildings, with Konstantis warning that the number of buildings considered dangerous could increase dramatically without intervention. “If measures are not taken, the 5,000 dangerous buildings that exist today will become 15,000 or more within five years,” Konstantis said. He called for regular building inspections through the introduction of an MOT-style inspection system for buildings, arguing that such checks were urgently needed. Developers call for faster approvals The Cyprus Association of Large Investment Projects also called for a broader strategy to support major investments and improve the conditions for development. The association’s president Andreas Demetriades outlined the organisation’s position in a speech read by board member Christos Christou. “We need a comprehensive strategy for the next day,” the association said, calling for a substantial acceleration in the licensing of strategic investments. It also called for a stable and predictable planning, tax and investment framework, modern infrastructure and competitive energy costs. The association said Cyprus also needed access to the specialised workforce required by the economy, while the green transition and technology should be incorporated into the design of new projects. It further called for a more active international policy aimed at attracting serious, long-term investors. Estate agents highlight changing market The Cyprus Real Estate Agents Association (Skek) said the property market had operated in an increasingly complex and rapidly changing environment in recent years. Skek vice-president Vasilis Artemiou said geopolitical turbulence in the wider region, international uncertainty, higher construction costs and changes in economic conditions had created significant challenges for the sector. “The geopolitical turbulence in the wider region, international uncertainty, increased construction costs and changes in the economic environment have created and continue to create significant challenges,” Artemiou said. He also highlighted the role of professional estate agents, arguing that their work extended beyond simply bringing buyers and sellers together. “The professional estate agent is something more than an intermediary between a buyer and a seller,” Artemiou said. “The professional is called upon to guide citizens through one of the most important financial decisions of their lives,” he added. Construction costs weigh on new supply The Cyprus Association of Building Contractors (Oseok) identified several factors affecting the introduction of new properties to the market, with its secretary-general Stefanos Pieridis pointing to labour shortages, rising construction costs, wider international and geopolitical uncertainty and energy costs. Pieridis said the impact of these pressures extended beyond the construction industry itself. “These increases do not affect only the construction industry,” Pieridis said. He said higher costs were placing pressure across the entire development chain, affecting the viability of projects and adding further pressure to final property prices. Bank outlines housing solutions The Bank of Cyprus also addressed the housing market, with its director of retail banking Theodosis Theodosiou outlining the bank’s housing initiatives. He said the bank had created an integrated ecosystem of mortgage solutions and digital tools designed to assist customers throughout the process of purchasing a home. “With the new online mortgage service, the process is simpler and faster than ever,” Theodosiou said. The conference therefore brought together a broad range of views on a property market that continues to record strong transaction activity, while facing pressures from housing affordability, construction costs, labour shortages, planning rules and geopolitical uncertainty.