Cyprus President Nikos Christodoulides said that rental and purchase prices of apartments are expected to decrease in the coming years. The main reason for this is a significant increase in housing construction, which will lead to a balance between supply and demand in the real estate market.
At a dinner hosted by the Cyprus Developers Association in Limassol, the president stressed that construction and residential real estate are a key part of the country’s economy. The sector accounts for 15% of GDP and employs more than 40,000 people.
The President expressed gratitude to developers for their contribution to the development of economic strategies and noted the successes in implementing a number of housing reforms. The main emphasis is on increasing the availability of residential real estate, especially for young people, thanks to new programs and incentives.
New programs
The central element of the reforms was the national plan Stegazo to Mellon mou. Under the program, developers are given bonuses on the development coefficient (25-45%) if some of the new apartments are offered at affordable prices.
Interest in these programs has been high among both developers and the public. More than 1,900 new homes are expected to be built, a significant portion of which will be affordable housing.
Already in the third quarter of 2024, the Central Bank of Cyprus’s residential property price index recorded a slowdown in price growth, which continued in the fourth quarter. The President is confident that the increase in supply on the market will lead to a decrease in rental and purchase prices for apartments.
Speeding up the permitting process
To simplify construction procedures, the government has reduced the permitting period to 40 working days for low-risk projects and 80 days for medium-risk projects.
A new law on the regulation of joint ownership of real estate is also planned. It is aimed at improving the management of residential properties and resolving disputes between owners.
In addition to the real estate reforms, Cyprus plans to complete preparations for joining the Schengen area by the end of 2025. In addition, a Business Support Centre has been launched, creating favourable conditions for investors.
These changes strengthen Cyprus’ position as a country with a promising residential property market, offering new opportunities for both residents and investors.
