Ask Wire CEO warns Cyprus housing pipeline may outpace demand by 2027
Pavlos Loizou says a surge in building permits, much of it aimed at foreign buyers, could create oversupply in that segment within a few years while locals still struggle to afford homes.
Cyprus risks a mismatch between the homes being built and the homes its residents can actually buy, according to Ask Wire founder and CEO Pavlos Loizou. Speaking on Property Talk by Bazaraki, he pointed to a wave of building permits issued in recent years that will start reaching the market in 2027 and 2028.
Permits for 8,978 residential units were issued between January and May 2026, up 63.7 per cent from 5,484 in the same period of 2025, according to a September analysis by Ask Wire cited in the discussion. Larnaca saw permitted units jump from 953 to 2,342, with Limassol and Nicosia also recording strong growth.
Loizou's main worry is not the overall volume of construction but who it is aimed at: much of the new pipeline targets foreign purchasers attracted by Cyprus' tax regime and relocations, while higher build costs and slow wage growth keep pushing ownership out of reach for many local households.
"If the question is whether too many homes are being built exclusively for foreigners, and whether there will be oversupply in that segment if they stop coming, then yes," he said.
What it means for residents
The warning matters less for what is happening now than for what the market will look like in two to three years, when today's permits turn into completed apartments. If foreign demand holds, prices in coastal areas stay firm; if it cools, the adjustment will be felt first in the segments locals were never really buying.
- Buyers: a wave of new supply in 2027–2028 could soften prices in some coastal developments, but mainly in smaller investment-type units rather than family homes.
- Owners: resale flats are already losing ground to new-builds, so older properties may take longer to sell or need a price cut.
- Renters: nothing changes immediately, but a glut of rental-oriented units could eventually ease pressure in the segments where that stock is concentrated.
This text is written from the source article and is not a translation of it.
