Cyprus real estate market remains active despite rising costs — Cyprus Mail
Cyprus’s real estate market remains highly active but faces rising costs, worker shortages and housing affordability issues. In 2025, 21,387 property transfers were registered in the country — approximately the same number as a year earlier — while the total value of transactions rose by about 10% to €4.73 billion, Cyprus Mail reports.
Update of urban planning rules
Cyprus Interior Minister Constantinos Ioannou said the government considers housing policy one of its priorities. According to him, the authorities are working on a strategy intended to both increase the housing stock and strengthen citizens’ purchasing power.
The government plans to revise local plans for major urban areas and the Policy Statement document in order to create a more modern, functional and flexible development system. Heraclis Achnotis, a representative of the Department of Town Planning and Housing, noted that plans for the four largest urban centres and an overall plan for the island are also being prepared and reviewed. He stressed the importance of cities’ resilience to shocks.
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Housing, dangerous buildings and costs
Constantinos Constantis, president of the Cyprus Scientific and Technical Chamber Etek, warned about the condition of old and dangerous buildings. In his assessment, if no action is taken, the number of such structures could rise from the current 5,000 to 15,000 or more within five years. He called for regular technical inspections of buildings modelled on vehicle inspections.
The Cyprus Association of Large Investment Projects called for speeding up the licensing of strategic investments, ensuring predictable urban planning, tax and investment rules, as well as competitive energy prices. Representatives of the construction sector cited labour shortages, rising construction costs, energy expenses, and international and geopolitical uncertainty among the factors holding back the creation of new real estate.
Stefanos Pierides, secretary general of the Cyprus Association of Building Contractors, said rising costs are putting pressure on the entire chain of development project implementation, affecting their viability and increasing pressure on final property prices.
