15.01.2024
The construction sector in Cyprus is currently undergoing major changes, thanks to the growing demand for apartments from both local and foreign buyers. Property developers in Cyprus are actively adapting to the new situation, increasing the number of residential projects in response to the growing interest in apartments.
According to Stelios Gavriel , Secretary of the Federation of Building Contractors Associations of Cyprus (OSEOK), is currently seeing a change in housing preferences. In the past, many Cypriots preferred houses with their own plot, but now more and more people are turning their attention to apartments.
This trend, according to Gavriel , is due to a number of factors, including increasing construction costs and rising interest rates. Despite a 6.9% decline in the number of building permits issued in the first ten months of 2023, the total cost and area of these projects increase by 17% and 3.6%, respectively. The number of residential real estate projects planned for construction is also growing. The number of residential properties overall increased by 10.3%, but the volume of building permits for detached and semi-detached houses decreased by 9.6% and 4% respectively.
According to a report from the statistical service ( Cystat ), the number of construction permits for non-residential buildings and civil engineering projects has decreased, but the demand for new apartments is increasing. The upward trend in real estate prices also continues.
OSEOK Secretary stressed that it is expected that interest in apartments will continue to grow in the coming years, which is also confirmed by research carried out by Cystat . These changes in the real estate market are associated with changes in the economic situation and the influence of the monetary policy of the European Central Bank.
The Government of Cyprus has also introduced incentives for new construction of affordable housing, with the aim of ensuring that housing is affordable to buy and rent. These measures include an additional construction factor for landowners, which will help increase the construction of affordable housing on the island.
