The reduced supply of real estate combined with the increased demand are the main factor in the rise in prices, as market professionals have repeatedly reported. Both the arrival of a large number of foreigners to work and study, as well as the strengthening of domestic demand, have created a new situation, which requires radical changes.
The increase and upgrading of the housing stock are central pillars in the effort to normalize the situation and reduce prices. The data issued a few days ago by the Statistical Service on building permits give a specific picture, in relation to the course that the market will follow in the coming period. As well as the guidelines given by ETEK at the beginning of the year in relation to the formulation of the new local plans, which will determine the development of cities.
More specifically, according to the Statistical Service, the number of building permits issued in April 2026 amounted to 639, recording an increase of 10.7% compared to the corresponding month of the previous year. The total value of these permits reached €413.0 million and the total area 335.3 thousand square meters. With these permits, 1,728 residential units are planned to be built.
During the period January – April 2026, 2.915 building permits were issued compared to 2.157 in the corresponding period of the previous year, recording an increase of 35,1%. The total value of these permits increased by 46.1% and the total area by 45.5%. The number of residential units increased by 65.0%.
Boom in apartments
Here, however, a deeper analysis is needed in terms of the above points. Specifically, as reported by Statistics in the part concerning residential buildings, in the period January - April 2026, the number of residential units related to residential apartment buildings amounts to 5,184, compared to 2,789 in the corresponding period of 2025, a number that translates into an increase of 85.9%.
As it turns out, the number of apartments that will enter the market in the next period will be huge and this is a key point in the effort to strengthen the housing stock, in order to meet demand and reduce prices.
After all, the government's effort is similar with the creation of units that will be included in the affordable housing plan, which the KOAG undertook to develop.
In addition, the increase in the number of units related to mixed apartment buildings is also noticeable, which for the first four months of the year amounted to 291 compared to 162 in the corresponding period last year. An increase which translates into a percentage of 79.6%.
As for the number of residential units related to detached houses and duplexes, an increase is recorded, but not in the amount of increases in apartment buildings. Specifically, the number of units related to detached houses in the first four months of the year amounts to 1,237 compared to 1,003 in the corresponding period of 2025 with the increase reaching 23.3%. The corresponding numbers for duplexes are 419 for the four months of 2026 compared to 367 in 2025 with an increase of 14.2%.
Division of plots
Another important point, which is recorded in the data of the Statistics, is the number of permits related to the construction of roads and the division of plots. It is obvious that the above points constitute the first stage of the construction of new residential units.
In particular, according to Statistics, the number of permits issued in the period January – April 2026 for the division of plots amounted to 270 compared to 157 in the corresponding period last year, recording an increase of 72%. In terms of road construction, permits amounted to 66 compared to 20 in the four months of 2025, recording an increase of 230%.
ETEK's proposals
In addition to the above, we should point out that the process of revising the local plans is underway. As it is known, through local plans, the development policy of cities for the coming years is formed and therefore, with their preparation, the development course of the construction sector will emerge.
In January 2026, ETEK completed and published the report of the Strategic Planning of Local Plans for the cities of Nicosia, Limassol, Larnaca and Paphos.
Among other things, in the policy directions proposed by the Scientific and Technical Chamber of Cyprus, i.e. the institutionalized Technical Advisor of the State, it is proposed:
(a) The transition to a compact and polycentric organization of cities, with a clear prioritization of centers, sub-centers and neighbourhood centers, as well as the definition of axes of development and areas of revitalization.
(b) A clearer separation between morphological identity and land uses, strengthening mixed uses and concentration of increased densities in areas with adequate infrastructure and accessibility or vice versa, avoiding horizontal extensions to new land.
(c) Residential development and urban revitalization were set as central axes. The emphasis shifts from expansion to the activation and upgrading of the existing building stock, with particular reference to affordable housing. The need to combine urban planning incentives with financial and administrative tools, as well as the acceleration of procedures for reuse and upgrading projects, was highlighted.
(d) The implementation of speed limits in neighbourhoods, school roads, full roads and the redistribution of road space is important. These regulations are directly related to road safety, public health and the daily functionality of the city.
The challenges, ETEK adds, differ between cities: From fragmentation and heat pollution in Nicosia, to anarchic and linear development in Limassol, incompatibilities of uses and environmentally sensitive zones in Larnaca and the need for tourism-everyday city balance in Paphos. Therefore, it was proposed to adopt five-year intervention packages per city, with clear implementation tools and measurable indicators.
OEB and CCCI
The importance of the construction sector in the economy was commented on in statements to KYPE by both the General Director of OEB, Michalis Antoniou, the Secretary General of the CCCI, Filokypros Roussounidis.
Mr. Antoniou said that "the construction sector has always been one of the engines of the economy" and one of the pillars on which the return to growth rates is based whenever conditions of crisis or recession arise. As he said, the data on building permits document that the real estate sector remains attractive for investment, both for Cypriot and foreign investors.
He added that the high growth rates of the sector also contribute to the increase in the supply of housing units, so that there is "even a partial easing of the housing problem". As a key issue for the sector, he highlighted the provision of the necessary workforce, noting that "the workforce that exists in Cyprus is not sufficient" to meet the needs.
On behalf of the CCCI, Mr. Roussounidis described the increase in building permits as a positive element for the economy, noting that the Cypriot economy "proves once again its resilience" through crises and geopolitical tensions.
As he mentioned, the increase in permits shows that the construction industry "continues to operate and remains on a path of recovery and growth", while at the same time there are growth prospects for the country and positive indications for the wider course of the economy. As an important challenge for the construction sector, but also for other sectors of the economy, he highlighted the fight against bureaucracy and the strengthening of the digital transition of both private businesses and the state machine. He also made special reference to licensing procedures.
