Cyprus housing prices rise 7.9 per cent amid 39,000-home shortage

Cyprus is facing a significant housing crisis, with a shortage of approximately 39,000 homes and rapidly accelerating property prices. According to preliminary data from the statistical service, Cystat, house prices in Cyprus rose by 7.9 per cent in the second quarter of 2026 compared to the previous year, an acceleration from previous quarterly growth rates.

Experts have proposed differing strategies to address the crisis. Economist Dr Stelios Platis suggests treating housing as a social issue rather than a purely market-driven concern. He proposes implementing caps on the number of homes in large developments that can be sold or rented to third-country nationals, particularly in scarce land areas like coastal zones. Platis also advocates for providing cheaper financing options specifically for permanent residents.

In contrast, Polys Kourousides, president of the Cyprus Property Valuers Association, argues that the primary solution is increasing the supply of housing. While acknowledging the need for affordable finance for young people, Kourousides warns that subsidizing demand without increasing the number of available homes could inadvertently drive prices even higher.