Filenews 7 February 2026 - by Angelos Angelodimou
The housing problem has now become a key and dominant issue for Cypriot society. Not unfairly, since it affects a large part of the population, mainly young people and young couples, who are struggling to start a new life, but also people who live on rent and are no longer able to find a decent property at a reasonable price.
The middle and low income strata are the ones who suffer the most, since the country's housing stock no longer meets the needs of this category of people.
As much as we may not realize it, the composition of Cypriot society has changed drastically in recent years. The descent of thousands of workers has resulted on the one hand in strengthening the demand for real estate to a multiple extent than the supply could cover, while at the same time, the real estate market has not kept pace with the diversification of the needs of the new order of things.
All these developments, combined with the existing pathologies of the system, such as delays in the issuance of permits, bureaucracy, lack of incentives to renew the existing stock, but also the surge in tourism, which created additional housing needs, brought the market to its current state.
What if they can no longer live here?
TechIsland, the largest non-profit association of technology companies in Cyprus, based in Limassol, recently organized the first Town Hall. An event, which aims to create a platform, through which all stakeholders will be at the same table, in order to create the conditions for a meaningful and documented dialogue around the critical issues affecting Cypriot society and economy.
Tanya Romanyukha, General Manager of TechIsland, emphasized that the choice of mortgage as the first topic was conscious. As he pointed out, housing is a common experience and a common concern for all those living in Cyprus.
It affects the daily life of families, the choices of families, social cohesion and the long-term prosperity of the country. It is a complex, multifactorial issue and requires exactly what this first Town Hall aspires to offer: Dialogue, transparency, data and cooperation.
A simple and at the same time crucial question, which dominated the first TechIsland Town Hall, was whether Cyprus, and especially the real estate industry, can continue to grow, in the event that people can no longer afford to live here. As it emerged from the discussion held at the first Town Hall organized by TechIsland, the developments regarding the demographic situation on the island have overtaken the real estate market, which has not been able to keep up with the new data.
Foreign workers
Pavlos Loizou, CEO of Ask Wire and member of the TechIsland PropTech Working Group, proceeded to a detailed record of the current picture of the real estate market, analyzing the developments of recent years, the pathologies that exist and the possible solutions that will correct the distortions.
Among other things, Pavlos Loizou noted that from 2021 until today, i.e. within a period of five years, Cyprus has added about 70-80 thousand foreign workers to its workforce. Of these, about 20 thousand are low-income workers while about 55 thousand are highly qualified professionals, who are mainly employed by foreign companies operating in Cyprus. At the same time, the country's housing stock increased by only 43,000, with several units still under construction. According to Mr. Loizou, most of them units are characterized as high end (luxury) and in the wrong places.
Existing stock
As far as the existing housing stock is concerned, the situation is as follows. 47% of the houses were built before 2000. Buildings account for about ~30% of national energy consumption. After 2021, the new projects that have been erected mainly concern high quality and tourist character, while the upgrade rate is ~1% per year, with the required percentage being 2–3%. Another interesting fact is that the houses that were built in the past are larger than people really need (~70% compared to 33% in the EU).
Therefore, based on the above data, it is noted that Cyprus is at a turning point. On the one hand there is the old stock of real estate, on the other there are the new energy limits of the EU and in the middle the low rate of renovations. This is a mismatch that the market cannot correct on its own, but specific policies are needed.
In fact, it follows that Cyprus has changed its population base, but has not changed the type of housing it builds. Specifically, as Pavlos Loizou pointed out, demand has shifted to: More small units, while the largest supply concerns homes of 100–150+ sq.m. More rental homes are needed, as well as more units near employment centers and not in suburban areas (detached houses).
The tourism factor
Another factor that affected the real estate market was tourism. How did this happen? Tourist arrivals have doubled since 2011.
Specifically, from 2.4 million tourist arrivals have reached 4 million today. This created demand for about 37,000 additional tourist beds. However, Cyprus added only 3–4,000 hotel beds, leaving a deficit of about 33,000 beds. This gap was almost entirely filled by STR (Short-Term Rental), absorbing about 16,000 apartments or 32–48,000 beds which apartments were essentially taken off the market, so there was an even greater reduction in supply.
Conclusions
Through the discussion that took place at the first Town Hall organized by Techisland, some conclusions emerged. Among them were that:
(a) Prices are rising faster than wages,
(b) supply does not align with demand;
(c) a large part of the housing stock is aged,
(d) Urban planning systems designed decades ago find it difficult to keep up with the needs of the time.
In conclusion, it was pointed out that Cyprus must match the real estate market with the reality of the population, the housing capacity and the readiness of the institutions. Without a national direction, housing pressures will continue to escalate. One of the possible solutions that could be given was the extensive use of the Build-to-Rent (BtR) method.
What is Build-to-Rent (BtR)
What does this mean? Build to Rent (BtR), which is often referred to as "build to rent," describes a real estate model where large residential or apartment complexes are built solely for the purpose of renting rather than for sale. Unlike the traditional market, where an investor buys a property to rent (buy-to-let), in BtR the entire building is owned by one or more institutional investors and managed professionally.
Such properties are designed from the outset for tenants, with a focus on quality, durability, and ease of maintenance. The entire complex is owned by one entity, which undertakes the management (professional management), often offering concierge services, security and maintenance.
As advantages, the high quality of construction and professional maintenance, the sense of community and access to luxury amenities, the greater security of accommodation (rent/contract stability) are recorded. For investors, it translates into stable, long-term incomes, economies of scale in management and maintenance, and lower rates of vacant apartments.
