Cyprus real estate sector faces challenges due to licensing delays

Marinos Kynaigirou, President of the Cyprus Real Estate Agents Council, stated that lengthy bureaucratic procedures for planning and building permits are significantly obstructing property development. These delays impact both foreign and local investors, stalling projects worth millions of euros. Limited housing stock is identified as the primary factor maintaining high property prices, as new supply cannot meet current demand. Kynaigirou emphasized that urgent state intervention is necessary to streamline licensing processes to improve market competitiveness. He noted that the government’s plan to develop over 10,000 housing units could effectively ease market pressures if implemented promptly. Additionally, he mentioned that financial transactions for foreign investors remain challenging due to banking procedures. Current market projections indicate that housing prices are expected to stabilize without significant increases through 2026, provided that supply is adequately boosted. Stakeholders are calling for consistent application of planning incentives to unlock stalled investments.