Growth with risks: Cyprus real estate market demands urgent reforms

The Cyprus real estate market continues to grow but faces serious structural problems. This was stated by the President of the Land and Building Developers Association, Giannis Misirlis, in an interview with Forbes, emphasizing that without reforms, the industry will not be able to meet demand.

According to him, the key issue is a chronic housing shortage. Despite the activation of state policies, construction rates remain insufficient. The main obstacle is lengthy licensing procedures: sometimes it takes longer to obtain permits than to construct the building itself.

"Transparency is not a bonus, but a condition for acceleration," Misirlis noted, calling for the introduction of mandatory application processing deadlines and the creation of a digital registry to track their status.

Additional pressure on the market is exerted by rising energy prices, which affect construction costs at all stages — from materials to operation. Amid instability in the Middle East, this factor is becoming a long-term risk.

Another serious problem is the shortage of skilled labor. Without attracting specialists from abroad and increasing the attractiveness of construction professions, the deficit will only intensify.

Following a recent building collapse in Limassol, the issue of safety has come to the forefront. According to Misirlis, the current control system is insufficient and requires a transition from "passive" to active supervision with regular inspections and rapid response measures.

The situation is further complicated by a combination of factors: rising material costs, high interest rates, and limited purchasing power of the population. This is already hindering the launch of new projects.

Despite this, the market remains resilient: sales rose by 18% in March. Cyprus remains attractive to investors as a stable EU jurisdiction. However, supply chain disruptions and rising transportation costs require greater flexibility in planning from developers.

The expert also emphasized the need to institutionalize the developer profession — introducing clear work rules and control mechanisms to increase buyer confidence.

According to Misirlis's forecast, housing demand will remain high in the coming years. But the future of the market depends on the speed of reforms: if decisions are made promptly, Cyprus can become one of the key centers for real estate investment in the region.