The surge in building permits, which is expected to significantly boost the housing supply in the near future, is fueling hopes for a decline in prices.

According to data from the Statistical Service, a total of 639 building permits were issued in April 2026, which are projected to result in the construction of 1,728 housing units. This represents an increase of 10.7% compared to the same month last year.

Noteworthy is the growth in residential apartment buildings, which from January through April increased by 85.9% compared to the same period in 2025, while for mixed-use apartment buildings, the increase reached 79.6%.

These figures indicate a gradual shift in the real estate market, where supply is set to increase. According to experts, this could benefit buyers and renters, though not immediately. 

“At least for the next two to three years, property prices are not expected to decline. Now, if this increase in building permits continues in the coming years and demand—primarily external demand, since domestic demand is expected to remain steady—does not rise, we may see a slight decline in apartment prices in the coming years.”
<sup>Polys Kourousidis, President of the Association of Real Estate

Appraisers</sup> However, rising costs also come into play. “Unfortunately

, construction costs have risen and are not expected to fall. Labor costs have risen significantly, and this increase, along with the rise in building permits, will create even greater demand for labor—which, unfortunately, we do not have in Cyprus to meet this increased supply we want to see.”
^{Polys Kourousides, President of the Association of Real}

^{Estate Appraisers} As for the reasons behind the increase in building permits, Polys Kourousides attributes it to the market’s positive response to increased demand and the expedited issuance of permits by the District Local Government Organizations.

Watch the report by Rafaella Stavrinou