The surging property prices in Cyprus in recent years, fueled by increased demand and escalating construction material costs, have raised concerns among experts and industry insiders.
Marinos Kineyirou, President of the Council for Registration of Real Estate Agents, expressed his apprehension about the current state of the property market, where many property owners, developers, and individuals are seeking what he referred to as "unnaturally high" selling and rental prices.
Kineyirou, drawing upon his extensive experience in the Cypriot real estate market, pointed out that these prices are deviating from the traditional and logical parameters of the market. Recent data from the Central Bank of Cyprus supports these observations, with the House Price Index indicating a 7.7% increase compared to the same period the previous year.
Notably, housing prices have risen by 6.6% annually, while apartment prices have surged by 8.4%. For instance, an apartment valued at €150,000 in the first quarter of 2022 is now selling for approximately €163,000, and similarly, a house valued at €250,000 is now approximately €265,000.
In regions like Limassol, where prices have seen the most significant increases, real estate sales reached nearly €500 million in value during the second quarter of 2023. The majority of buyers showed interest in apartments valued between €100,000 and €500,000.
Nicosia, the capital, also experienced robust real estate activity, with apartments priced between €100,000 and €200,000 being particularly popular among buyers. However, this trend has raised concerns, especially as households face financial constraints in a property market marked by rising interest rates.
Kineyirou emphasized the crucial role of real estate agents in mediating transactions but clarified that they do not set property prices. He noted that real estate agents have faced criticism from potential buyers and renters due to the soaring prices.
In conclusion, Kineyirou stressed the need to address excessive price hikes, as they could have adverse effects on the entire real estate sector and the broader economy. The Council for Registration of Real Estate Agents is committed to raising awareness about market dynamics and roles within the property market to navigate these challenges.
By fLEXI tEAM