A significant stock of several thousand apartments is expected to bolster the housing supply in Cyprus over the coming months, as construction works are set to be completed on more than 500 apartment buildings.
Housing is among the foremost issues occupying the daily lives of citizens due to the increases witnessed in recent years for a variety of reasons in market prices and rents.
The rise in the cost of crucial construction materials and raw materials, inflation, supply chain issues, and interest rate hikes are just some of the factors making the decision to purchase a house or apartment difficult for young couples.
“One of the primary reasons for the increase in residential property prices is the law of the market itself, which dictates that values rise when demand exceeds supply. Additionally, the inability of many to buy a house or apartment leads to renting, resulting in overheating of demand and rental market. Therefore, the burning question is how much the supply of residential properties will increase and when,” explained Paul Loizou, CEO of Ask Wire, to Phileleftheros.
As evidenced by data compiled and analyzed by Ask Wire regarding the construction of new apartment complexes, mobility in terms of supply was observed throughout Cyprus in 2023 as construction commenced on the erection of 541 apartment buildings across all provinces of free Cyprus. Construction activity increased sharply from March onwards, with more than 50 apartment buildings being initiated per month.
The findings are of particular interest as they provide a clear picture of construction developments in the country through data collection and analysis of satellite imagery, which meticulously captures ongoing projects and even facilities for renewable energy sources.
In Limassol, the city with the highest selling and rental prices for apartments and residential properties in general, construction of a total of 198 apartment buildings began in 2023. During the March-May 2023 quarter, construction industry in Limassol intensified as construction projects for 76 apartment buildings commenced.
The sluggish periods for Limassol are the first and last months of 2023.
In Nicosia, there is no notable concentration of construction projects during any specific period of 2023, as the commencement of construction of 165 new residential apartment buildings is spread across all months.
Indicative is the fact that the two most productive months for Nicosia (June and September) each saw 18 developments, while the fewer developments (8) started in December 2023.
According to Ask Wire’s analysis, in the Larnaca province, a total of 127 apartment buildings were put forward in 2023 to meet demand from foreign and local buyers.
The month with the most project commencements (16) is July. The provinces of Paphos and Famagusta showed double-digit numbers of projects, underscoring the local disparities that characterize the Cypriot market.
(Picture by George Christophorou)
