Property development and construction remain one of the most vital pillars of the Cypriot economy, contributing close to 15% of GDP and employing over 40,000 people. This sector plays a substantial role in the country’s development journey.
In an interview with InBusinessNews, Yiannis Misirlis, President of the Cyprus Land and Building Developers Association, describes the criticism often directed at the industry as both unfair and oversimplified – particularly when driven by isolated incidents.
He makes it clear that the vast majority of companies operating in the sector do so with responsibility, adhering to strict standards and working under a robust regulatory framework. At the same time, he stresses that those who break the law must face the consequences without exception.
Property sector has enduring strength and resilience
Despite global uncertainties, Cyprus’ property market continues on a steady upward trajectory. All indicators for 2025 suggest that this momentum will not only continue but could even accelerate.
Official data from the Department of Lands and Surveys shows a 15% year-on-year increase in the number of sales documents filed across Cyprus in the first quarter of 2025. Larnaca leads with a 26% surge, followed by Nicosia and Limassol at 15%, Paphos at 7%, and Famagusta at 4%.
This growth across all districts highlights the sector’s healthy state and its appeal, driven by a consistent supply of modern, high-quality, and energy-efficient properties.
In terms of sales value, 2024 saw €1.5 billion in new flat sales and €510.6 million in new house sales. Projections for 2025 suggest that similar or even higher figures may be achieved.
Key challenges: labour, licensing, and going green
Despite its strong performance, the real estate sector still faces significant challenges. Chief among them are:
- Shortage of skilled labour: A pressing issue that can delay project delivery, inflate costs, and reduce the sector’s competitiveness. There is a critical need for a comprehensive strategy to attract and retain skilled workers.
- Delays in building permit processes: Recent government moves to expedite licensing for low- to medium-risk developments—allowing permits within 40 days—are promising. However, ensuring this system works efficiently for larger projects is now a top priority.
- Green transition: As sustainability becomes a necessity rather than a choice, incorporating eco-friendly practices and aligning with the EU’s Fit for 55 package is essential. A well-structured green strategy with targeted incentives will be crucial for the sector’s future.
Misirlis emphasises that dialogue and collaboration – with the Ministry of Interior and all relevant bodies – are key to overcoming these hurdles and ensuring the sector’s ongoing evolution.
Stability amid global uncertainty
The recent trade tensions sparked by US tariffs have disrupted the global economic landscape. While this has created widespread uncertainty, Cyprus’ property market remains a resilient and attractive investment option.
Cyprus offers a stable environment, favourable tax policies, and consistent growth—all of which appeal to investors seeking safer havens in turbulent times. Misirlis notes that this reputation for resilience and adaptability in crisis periods only strengthens the country’s position on the international investment map.
Property sector’s contribution to the economy
The real estate and construction industry is not just a driver of GDP – it’s also a major source of employment and tax revenue. Its role in shaping Cyprus into a global business and investment destination is clear and ongoing.
The industry has proven its worth even in the most challenging of times, continuing to support the economy and act as a growth engine.
Affordable housing remains a concern
Access to affordable housing remains a significant issue. While there has been some stabilisation in property prices, trends vary depending on property type, region, and other factors.
Recent data shows that in Q4 of 2024, house prices fell by 1%—the largest quarterly drop since 2022. However, rental prices increased by 4.6% in 2024 compared to the previous year.
Looking ahead, there’s hope that government housing policies will boost supply, especially in the affordable segment, helping to ease price pressures. The industry is well-placed to support these efforts with its expertise, resources, and workforce.
Misirlis stresses that housing is a fundamental human right and a cornerstone of social cohesion. The private sector must work hand-in-hand with public bodies to ensure all citizens have access to appropriate and affordable accommodation.
Unfair targeting: a call for balanced dialogue
The real estate sector, being highly visible and economically significant, is naturally subject to public scrutiny. However, Misirlis argues that the criticism it faces often misrepresents the reality.
The majority of developers operate ethically and within the law. It is unjust to tarnish the entire sector over the actions of a few. Misirlis is firm that legal violations must be punished – but stresses the need for balanced, informed debate.
Constructive criticism, grounded in facts and driven by meaningful engagement, is not only welcome but essential. Through such dialogue, the industry can continue to improve and evolve for the benefit of both society and the national economy.
(Translated and summarised from the Greek article in INBusinessnews)
