Lengthy licensing procedures are creating obstacles for investors and developers, while limited housing supply continues to fuel pressure in the Cyprus housing market, according to the President of the Cyprus Real Estate Agents Council, Marinos Kynaigirou.
He noted that delays in planning and building permits remain one of the most significant barriers to real estate development, affecting both foreign investors and local businesses.
According to him, these delays slow down projects worth millions and reduce the flow of new properties into the housing market.
Supply shortage drives prices
Kynaigirou stressed that insufficient new housing stock remains a key factor sustaining high prices in the housing market.
He said that without faster development and increased supply, price pressures will persist, limiting affordability for buyers.
He added that accelerating licensing procedures is essential to support both local and international development projects and to strengthen competition in the sector.
“Without new developments, prices will not fall,” he said, calling for urgent state intervention to speed up approvals and unlock investment.
Hope pinned on 10,000-home plan
Referring to government plans to develop more than 10,000 housing units, Kynaigirou said this could significantly ease pressure on the housing market if implemented without delays.
He added that boosting supply is currently the most effective measure to address housing challenges, noting that prices appear to be stabilising and no major increases are expected in 2026 under current conditions.
However, he warned that planning incentives and fast-track licensing measures must be implemented effectively to deliver real results.
Strong demand sustains market pressure
Despite global geopolitical uncertainty, demand for property in Cyprus remains strong, continuing to support activity in the housing market.
Kynaigirou said that strong demand has been a major driver of price increases in recent years, a trend also observed across several European countries.
He urged buyers to exercise caution and work only with licensed real estate agents, warning that cases of fraud and exploitation still occur in the market.
He also cautioned that buyers risk significant financial losses if they do not verify transactions properly or engage unlicensed intermediaries.
Also read: VAT audit Cyprus report raises concerns over tax controls
For more videos and updates, check out our YouTube channel
