Sharp rise in building permits: Georges Chehwane’s outlook for Cyprus’ Real Estate Market
“Will demand follow supply?” – Georges Chehwane analyses Cyprus’ real estate market for LarnakaOnline
The CEO of Plus Properties cautions buyers and new developers about oversupply risks and calls for stronger capacity across the relevant authorities
The sharp increase in building permits and planned housing units across Cyprus is creating new opportunities for the construction sector. At the same time, however, it raises concerns over whether demand will be strong enough to absorb the substantial volume of new supply expected to enter the market in the coming years.
Against this backdrop, LarnakaOnline asked Georges Chehwane, CEO of Plus Properties, to share his assessment of the Cyprus real estate market, the challenges that may arise and the factors that buyers and new developers should consider.
“Cyprus’ real estate market remains strong. However, strong markets also require caution, discipline and long-term planning,” Mr Chehwane said.
A sharp increase in new developments
Between January and April 2026, 2,915 building permits were issued, representing an increase of 35.1% compared with the corresponding period last year. Their total value reached €1.67 billion, while the number of planned homes rose by 65% to 7,131 units.
The increase in apartment developments was even more significant. A total of 5,184 units are planned in residential apartment blocks—85.9% more than in the corresponding period of 2025.
During the same four-month period, registered property sales across Cyprus increased by approximately 14%, reaching 6,320 contracts.
The CEO of Plus Properties clarified that these figures are not directly comparable. Building permits represent future supply, while registered sales cover different property categories and reflect current market activity.
Nevertheless, the significant difference in their respective growth rates raises a critical question:
Will demand grow fast enough to absorb all this new supply?
“I am not convinced that it will—at least not in every city, location and segment of the market,” Georges Chehwane said.
“There is not enough room for everyone to succeed”
According to Mr Chehwane, Cyprus is a relatively small market with limited capacity to accommodate every new developer and every new project.
“Developers entering the market without sufficient experience, financial capacity or long-term planning may create unhealthy competition, place pressure on prices, delay projects and ultimately harm both buyers and the wider sector,” he explained.
Mr Chehwane expects price corrections in certain areas where supply is growing faster than genuine demand. He also believes that some financially weak developers may face serious difficulties, with some potentially being forced to leave the market.
His message to new developers and buyers
Addressing those considering entering the property-development sector, the CEO of Plus Properties stressed the importance of conducting careful market research.
“A building permit does not guarantee the commercial success of a project. Attractive sales projections cannot replace experience, financial strength and proper planning,” he emphasised.
His message to prospective buyers is equally clear:
“Do not choose a property based only on a low price or attractive marketing.”
Buyers, he explained, should select financially strong and experienced developers with a proven delivery record, sufficient construction capacity and the ability to support both the development and its owners long after the sale has been completed.
Infrastructure is not keeping pace with development
Georges Chehwane also raised another important concern: the country’s infrastructure and relevant authorities are not expanding at the same pace as private development.
Issuing a building permit is only one stage of the process. The completion of a development also depends on electricity connections, water and sewerage services, inspections, approvals and other essential infrastructure.
Based on his experience in the market, the Electricity Authority of Cyprus currently has extremely limited contractor capacity for new connections. At the same time, organisations such as the Larnaca District Local Government Organisation (AOAL) are being asked to manage a rapidly increasing workload with limited staffing.
The shortage of personnel, technical specialists and contractors is already causing delays. These bottlenecks may become even more serious as thousands of additional housing units move from the permit stage into construction.
“Cyprus needs long-term planning, targeted recruitment, more technical personnel and sufficient contractor capacity across all relevant organisations. If the state encourages and approves new development, it must also ensure that the services supporting that development can deliver efficiently and on time,” Mr Chehwane said.
Concluding, the CEO of Plus Properties underlined that a growing property market creates important opportunities for Cyprus, but growth must be accompanied by balance, responsibility and proper planning.
“Growth without discipline creates risk, while growth without the necessary infrastructure creates delays, uncertainty and additional costs for everyone. The objective should not simply be to build more. It should be to build responsibly, sustainably and in line with genuine demand.”
