Multi-Family Living Drives Construction

Developers in Cyprus are witnessing a surge in demand for apartments, both from local and international buyers, propelling growth in the construction sector. Stelios Gavriel, the Secretary of the Federation of Cyprus Building Contractors Associations (OSEOK), highlighted the evolving landscape, noting that developers are increasingly engaging in residential building construction projects to meet the escalating demand for apartments.

According to Financial Mirror, however, buyers, even those in areas were traditionally people opted for a house, are now turning to apartments.

“This is directly linked to recent developments which have pushed up construction costs, and the hike of interest rates. We have seen a turn to apartments across the island,” noted OSEOK’s secretary.

Gavriel said that developers expect the trend in favour of apartments to pick up pace in 2024 and the following years, noting that this is also inferred from recent surveys released by the Statistical Service Cystat.

Cyprus has seen a 6.9% reduction in the number of building permits issued during the first ten months of 2023, compared to the same period the previous year, according to a report by the statistical service.

“However, this unexpected trend, emerges amidst concurrent growth in the total value and area covered by these permits, as well as the number of residential units planned for construction,” he pointed out.

During the period January to October 2023, a total of 5,906 building permits were issued compared to 6,347 in the corresponding period of the previous year, a decrease of 6.9%. The total value of these permits increased by 17% and the total area by 3.6%.

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