Momentum in Cyprus’ real estate market after two years of Covid lockdowns and restrictions is surviving the cost-of-living crisis and raw material hikes powered by the Ukraine war, say stakeholders.
In comments to news site Stockwatch, Marinos Kineyirou, chair of the Real Estate Agents Council, argued that high demand for buying and renting, combined with limited supply, is pushing up property prices.
A big chunk of demand comes from the domestic market, with local buyers eyeing older properties that are not affected by the increased cost of raw materials.
“Additionally, we have a lot of interest from Ukrainians and Russians, while buyers from Israel and Lebanon are also increasing”, said Kineyirou.
He added the next few months maybe be difficult for the economy and the market should the international financial and energy crises bite deeper, but nevertheless, real estate prices are not expected to drop.
According to the bulletin of the Real Estate Registration Board, in the second quarter of 2022, a total of 5,442 sales worth €1.2 bln were recorded in Cyprus.
A significant increase was also recorded in transactions for land plots to be developed.
Specifically, 120 transactions with a total value of €127 mln were registered, demonstrating that land development entrepreneurs are planning and developing new projects to meet rising demand.
The president of the Cypriot Association of Real Estate Agents, Andreas Kaouris, said: “We are slowly entering an economic recession, following the rest of the European countries”.
“Although it will be difficult to stop the momentum building up amongst local and foreign property buyers in Cyprus”.
“Unfortunately, the war in Ukraine created opportunities due to 25,000 Ukrainians seeking refuge in Cyprus.
“But a number of Russians have also arrived via other countries, pushing demand even higher, driving up both sale and rental prices.
“Property prices have increased by approximately 25% in Nicosia and 40% in Limassol.”