The Cyprus property market remains strong, with sales holding steady and the value of transactions rising. But significant weaknesses and distortions continue to affect the sector.
That was one of the key messages from the Cyprus Property Show 2026, organised by FMW Financial Media Way on Wednesday, 16 September at the Cleopatra Hotel in Nicosia. The conference, titled “The present and future of property in Cyprus“, examined the latest market trends and the challenges facing housing, construction and planning.
Building safety was also high on the agenda, alongside the need to modernise the country’s planning framework.
Property sales remain steady
In remarks delivered by the Interior Ministry’s Director General, Elikkos Elia, Interior Minister Constantinos Ioannou said Cyprus’ property market remained strong.
A total of 21,387 property transfers were recorded across Cyprus in 2025. This was broadly in line with the figure recorded in 2024.
At the same time, the total value of transactions rose by around 10%, according to figures presented at the conference. The total value reached €4.73 billion in 2025.
The Interior Minister stressed that property is closely linked to the wider economy. It also affects investment, urban and rural development and the quality of life of residents.
Planning reform linked to housing
Housing was a major theme during the conference, with the government linking housing policy to development and planning.
Ioannou said housing was among the government’s top priorities. Measures are being promoted to increase the housing supply while also strengthening citizens’ purchasing power.
He said housing policy should be considered alongside wider development policy and town planning.
The government is therefore moving ahead with a review of the Local Plans covering the major urban areas. The Policy Statement is also being reviewed.
According to Ioannou, the aim is to create a more modern, practical and flexible development framework. It should respond to current housing needs while preparing for future challenges.
Planning changes aim to tackle old distortions
Heraklis Achniotis, First Town Planning Officer, also outlined the changes under way. He was speaking on behalf of the Director of the Department of Town Planning and Housing.
He said Cyprus was at an important point in the planning process. Work includes the preparation and review of the Policy Statement, the Local Plans for the four major urban centres and the island-wide plan.
Achniotis said these reviews should not be treated as a routine exercise. Instead, he described them as strategic tools that could help address existing distortions.
Urban resilience was another key issue. He said cities must be able to withstand shocks and that decisions taken today will shape the sustainability of planning over the next 20 to 30 years.
Housing remains a major challenge
The role of the Cyprus Land Development Corporation (KOAG) was also discussed at the event.
KOAG Director General Eleni Symeonidou outlined the organisation’s plans and projects aimed at addressing the country’s housing pressures.
ETEK President Constantinos Constanti also returned to the issue of housing. He noted that the Cyprus Scientific and Technical Chamber had submitted a comprehensive housing policy memorandum in 2023.
According to Constanti, some ETEK proposals have since been adopted. However, he said the overall objective had not yet been achieved.
He called for a single strategy and shared objective for the property sector. In his view, the sector should be able to grow while also contributing to better cities and improved quality of life.
Building safety warning
Building safety emerged as another pressing issue at the Cyprus Property Show.
Constanti warned that the number of dangerous buildings could rise sharply without further action. He said there are currently around 5,000 dangerous buildings and argued that the figure could reach 15,000 or more within five years.
He called for regular building inspections. His proposal was for a system similar to an MOT for buildings.
The comments highlight a wider challenge for Cyprus’ property market: supporting new development while also dealing with the condition and safety of existing buildings.
Developers call for faster approvals
Andreas Demetriades, president of the Cyprus Association of Large Investment Projects, also called for a more comprehensive strategy for the next phase of development.
His speech was delivered by board member Christos Christou.
Among the priorities raised was a substantial acceleration in the approval process for strategic investments. Demetriades also called for a stable and predictable planning, tax and investment framework.
Modern infrastructure was another priority, alongside competitive energy costs and access to the skilled workers needed by the economy.
He also highlighted the need to include the green transition and technology in the design of new projects.
A more active international policy to attract serious, long-term investors was another proposal put forward.
Property market faces several pressures
The market is operating in a complex and changing environment, according to the Cyprus Real Estate Agents Association’s vice-president Vasilis Artemiou.
He said geopolitical disruption in the wider region, international uncertainty, higher construction costs and changes in the economic environment had created significant challenges.
These pressures continue to affect the property sector, he said.
Artemiou also highlighted the changing role of estate agents. He said their work goes beyond bringing buyers and sellers together and includes guiding clients through one of the biggest financial decisions of their lives.
Four pressures on construction
Construction costs and capacity were also discussed by the Stefanos Pierides, the general secretary of the Federation of Building Contractors Associations of Cyprus.
He identified four factors directly affecting the delivery of new property: labour shortages, rising construction costs, wider international and geopolitical uncertainty, and energy costs.
According to Pierides, the impact extends beyond construction itself.
Higher costs affect the wider development chain, put pressure on the viability of projects and can add to the final price of property.
Banks expand digital mortgage services
The role of mortgage finance was highlighted by Theodosis Theodosiou, director of retail banking at Bank of Cyprus.
He said the bank had created an ecosystem of mortgage solutions and digital tools designed to support different stages of the journey towards home ownership.
Theodosiou also highlighted the bank’s new online mortgage service.
Cyprus property market enters a new phase
The Cyprus Property Show 2026 presented a market with continued activity but also a range of structural challenges.
Stable transfer numbers and higher transaction values point to continued demand. At the same time, housing affordability, planning reform, construction costs, labour shortages and building safety remain key issues.
The discussions suggest that the next phase of Cyprus’ property market will depend not only on sales and investment, but also on how effectively the country addresses the wider conditions shaping development and home ownership.
(Based on an article in Stockwatch)
