Sharp rise in building permits: Georges Chehwane’s outlook for Cyprus’ Real Estate Market

By Georges Chehwane | CEO of Plus Properties

Cyprus real estate remains strong. But strong markets also require caution.

Between January and April 2026, building permits increased by 35.1%, while the number of planned homes jumped by 65%, reaching 7,131 units. Apartments planned in residential buildings increased by an even more striking 85.9%.

During the same period, registered property sales across Cyprus increased by approximately 14%. The two statistics are not directly comparable—permits concern future supply, while sales include different property categories—but the gap raises an important question:

Will demand grow fast enough to absorb all this new supply?

I am not convinced it will at least not in every city, location and market segment.

Cyprus is a relatively small market. There is simply not enough room for every new developer and every new project to succeed. Developers entering the market without sufficient experience, financial capacity or long-term planning may create unhealthy competition, delay projects and eventually harm buyers and the wider sector.

I am also concerned about the shortage of skilled labour. As more projects move into construction, competition for experienced workers and reliable contractors is likely to intensify. Without sufficient workforce capacity, construction costs can rise and completion dates can slip.

These delays can increase financing costs and put further strain on developers’ cash flow, while buyers may have to wait longer for their homes. Developers could therefore face rising construction costs even in areas where selling prices are under pressure. Access to skilled teams and realistic construction schedules must be part of the planning from the outset.

I expect price corrections in certain oversupplied areas. I also believe some financially weak developers may struggle and some could eventually exit the market or fail.

My message to newcomers is simple: study the market carefully and do not underestimate its challenges. Make sure your budgets and delivery timelines reflect the availability and cost of skilled labour.

And to buyers: do not choose a property based only on price or attractive marketing. Choose a financially strong developer with experience, a proven delivery record and the capacity to stand behind the project long after the sale.

A growing market creates opportunities but growth without discipline creates risk.

At Plus Properties, our portfolio now spans 139 buildings across Cyprus. Our dedicated team and professionalism have helped us earn a leading position in the market. This is why buyers trust us.