Is Cyprus Heading for a Housing Oversupply in 2027–2028?
Cyprus has sharply increased the number of homes covered by building permits. Analysts warn that part of this pipeline could reach the market in 2027–2028.
By RealDeal team · 2 min read · Published 12 Oct 2026 · Updated 17 Oct 2026
Update (17 October 2026): permits issued in January–June 2026 cover 11,100 homes (+67.8%), including 7,832 flats (+85.3%) — read more.
Residential construction in Cyprus has accelerated sharply: according to the Statistical Service of Cyprus, building permits issued in January–May 2026 covered 8,978 residential units, compared with 5,484 a year earlier.
What the official data shows
Apartment blocks are the main driver: the number of flats covered by permits has nearly doubled.
Where the risk comes from
On 12 October 2026, Ask Wire founder and CEO Pavlos Loizou warned in comments published by Cyprus Mail that a meaningful part of today's pipeline could begin to put pressure on the market in 2027–2028. In his view, the biggest risk is in coastal projects aimed primarily at foreign buyers.
Two scenarios
International demand holds
- The additional supply is absorbed by the market
International demand weakens
- Competition between new developments intensifies