Cyprus has no reliable record of how many homes for sale in Cyprus are actually available to buy, according to the Cyprus Property Developers Association (CPDA).
The group says building permit figures give a misleading picture because they do not show whether homes covered by permits have already been sold.
The uncertainty comes as the housing market faces pressure from limited supply, strong demand, high construction costs and a shortage of workers. Without a clear count of available homes, it is harder for officials to judge the scale of the shortage or plan how to address it.
Building permits do not show available homes
Building permits are often used as an indicator of future housing supply. But the CPDA says the figures do not distinguish between homes still on the market and those already sold.
For example, if permits have been issued for 10,000 homes but 5,000 have already been sold, only half may remain available. Counting all 10,000 as unsold supply gives policymakers the wrong impression, the CPDA said.
The group analysed information on sales contracts and building permits. It argued that permit numbers alone do not provide a complete view of the homes available to buyers. A national record of the housing stock, compared with demand, could help identify how many homes the country is short of and guide a strategy to increase supply.
Foreign buyers account for two in ten sales
The CPDA also said non-EU buyers account for around two in every ten homes sold. It argued that their purchases do not explain the increase in house prices to the extent sometimes suggested.
Proposed legislation on foreign buyers did not appear to be based on sufficient evidence, the group added; there was no study showing that the same foreign buyer typically purchases more than two homes. On that basis, it questioned whether a possible cap would make a substantial difference to prices or availability.
Worker shortages hold back construction
A shortage of workers has pushed the construction sector close to its limits, according to the CPDA. A project receiving a permit will not necessarily be built straight away, as developers also need the workers and capacity to complete it.
The shortage of homes for sale is linked to more than just the number of permits issued. Construction costs remain high, while labour constraints can slow the delivery of new housing.
The CPDA says better information about homes for sale would help the state understand supply against demand. A reliable picture could then support policies aimed at increasing the housing available to buyers.
