There are 541 apartment buildings under construction in Cyprus

Due to increased demand, property prices in Cyprus have skyrocketed in recent years.

At the same time, there is an acute shortage of available rental and purchase options on the market. Fortunately, in the near future this problem will be solved.

Recently it became known that in 2023 local developers began to build 541 apartment buildings. This means that by the end of 2024 - beginning of 2025 several thousand new apartments will appear on the Cypriot market.

Recall that the situation in the real estate market of Cyprus is becoming critical.

Housing is becoming less and less affordable, especially for young families. Numerous indicators paint a bleak picture that requires immediate intervention of the authorities. Although Cyprus is not the first country to face this problem, this does not negate its significance. In many developed nations, it is becoming increasingly difficult for the younger generation, the Millennials, to purchase real estate. Several factors are contributing to this: the global economic environment, demographic changes, and increased life expectancy, which is delaying the return of existing real estate to the market for sale or rent.

The increased demand for real estate as companies and their employees relocate to the island has resulted in higher prices due to the limited existing housing stock. Apartment purchase prices have increased by about 12% in just one year, while rental prices have increased by about 20%. Observing this high demand, many property owners in Cyprus began to charge high prices. In turn, the arrival of a relatively large number of Israelis in Cyprus, which occurred at the end of 2023, further spurred the market.

Due to ever-rising prices and high mortgage rates, young Cypriot couples have become less likely to buy houses and apartments. Foreigners moving to the island to work for international companies faced the problem of finding decent quality housing at adequate prices.

One of the main reasons for the rise in residential real estate prices is the increased demand against the backdrop of limited supply. In addition, the inability of many people to buy a house or apartment forces them to rent, which leads to overheated demand in this segment of the market as well. Therefore, the question we care a lot about is whether and when there will be an increase in the supply of residential real estate," said Pavlos Loizou, head of Ask Wire.

As the data collected and analyzed by Ask Wire and related to the construction of new apartment buildings shows, there has been increased activity during 2023. In particular, construction work started on 541 apartment buildings in all regions of Cyprus. At the same time, the highest peak of residential projects was in March, when developers began construction of 50 apartment buildings.

If we look in more detail by city, in 2023:

1. Limassol started construction of a total of 198 apartment buildings,
2. in Nicosia - 165,
3. Larnaca 127,
4. in Paphos - 37,
5. in the free neighborhoods of Famagusta - 14.

Looking in more detail by month, however:

1. 42 objects started construction in January,
2. in February - 38,
3. in March - 60,
4. in April - 54,
5. 53 in May,
6. 50 in June,
7. in July, 56,
8. August, 35,
9. September 50,
10. October, 39,
11. November, 37,
12. 27 in December.