Ask Wire CEO warns of Cyprus housing imbalance as developers target foreign buyers

Nicosia, Cyprus. Ask Wire founder and CEO Pavlos Loizou has warned that an increase in building permits could create pressure on Cyprus’ property market in 2027 and 2028. He said a widening mismatch between new developments and local purchasing power was making ownership harder for many Cypriots.

Construction and affordability diverge

During the latest instalment of Property Talk by Bazaraki, Loizou said ongoing residential construction, especially in coastal cities, did not necessarily provide the housing needed by residents of Cyprus.

He attributed the affordability difficulties to rising construction expenses and comparatively limited wage increases, while developers increasingly focus on foreign purchasers who have more money to spend.

“Both can be true at the same time,” he said of the simultaneous increase in housing developments and the difficulty local buyers face in paying for them.

Loizou explained that the key issues were the intended purchasers of these properties and whether their demand would last.

Concerns centre on foreign-buyer developments

Loizou said he saw little indication of excess supply in homes intended for local purchasers. His greater concern was the expanding development pipeline serving foreign buyers and the possibility of oversupply in that segment if those buyers stopped coming.

He said Cyprus’ tax conditions, international companies moving to the country and geopolitical developments, notably in the eastern Mediterranean, had helped sustain foreign demand. However, he cautioned that these drivers could not be expected to persist indefinitely.