Opinion
By Andreas Christoforidis*
The 8.5% rise in house prices in the second quarter of 2026 is a figure that rightly draws attention. For buyers, however, the question is simpler: Can I still afford a home in the area where I want to live? For investors and developers, the question is just as important: Am I building what the market will need five years from now?
Whenever prices rise, the discussion turns to foreign buyers. International demand certainly influences the Cypriot market. But its impact varies by district, neighborhood, and type of home. A holiday-home buyer, a family moving to Cyprus for work, and an investor seeking rental income have different needs. We cannot plan housing supply by treating them as a single group.
Strong demand alone does not explain why a young couple struggles to find a suitable home. Land prices, construction costs, the time it takes to complete a project, and the types of homes we choose to build also shape the outcome.
My view is that Cyprus needs a more precise picture of the gap between housing demand and supply. Knowing how many transactions took place or how many new homes received permits is not enough. We need to know where those homes are, how large they are, what their eventual selling price will be, and which households they are intended for.
This analysis needs to be broken down by area and price range. A new luxury development and an apartment a working person can afford serve different parts of the market. Both have a place in a healthy economy. But when the available options do not match the incomes of people who live and work here, an overall increase in construction does not automatically solve the housing problem.
For developers, this is also a business opportunity. The right decision starts with the question, “Which buyer or tenant will this property serve, and at what price can they realistically afford it?” rather than, “How many square meters can I build?” For investors, it means looking beyond district averages to the specific local market and its actual capacity to sell or rent the properties being offered.
Cyprus has every reason to remain attractive to international buyers and businesses. It has an equally strong reason to ensure that development creates homes and long-term rental options for the people who keep its economy running every day.
That will be the real measure of the housing market’s success in the years ahead: not just how much prices have risen, but whether the new homes being built meet the actual needs of each city.
*Andreas Christoforidis MRICS, CEO, Landbank Group
