03.01.2023
President of the Board of Registration of Real Estate Agents Marinos Kineirou said the organization has taken important steps to address critical issues affecting both real estate agents and the general public in 2022, a year marked by uncertainty and global instability, ahead of a challenging 2023.
“After two years of fighting the pandemic, the war that broke out in Ukraine in early 2022 has once again changed the situation. Despite this, the real estate sector has proven resilient, continuing to grow and strengthen, as reflected in the comparative sales data the council now receives quarterly from the Land Registry before being processed for publication,” he added.
Kineiro said a total of 5,566 transactions worth €1.65 billion were recorded in the third quarter of 2022, compared to €1.2 billion in the second quarter and €1.3 billion in the first quarter of 2022.
At the same time, he explained that demand during 2022 was affected by several factors, including the war in Ukraine, the government’s scheme to stimulate the attraction of international companies to Cyprus, as well as interest rate subsidies that were in effect until the end of 2021.
“All these factors have contributed to an increase in demand for real estate, both from local residents and from foreigners. We expect the coming months of the new year to be full of challenges that could ultimately affect demand and therefore the growth rate of the real estate sector, which could lead to a slowdown in the sector,” he added.
The President of the Council noted that the purchasing power of households will continue to be under pressure due to high inflation, while Cypriot businesses may delay investment decisions until uncertainty and high costs disappear.
In addition, the rise in loan rates is another factor that could affect the plans of those who are thinking about buying a house or apartment for home ownership purposes, he explained, while noting that the low VAT rate of 5% could also add to the challenges, facing the industry
“In addition to these factors, there is also the issue of rising raw material prices, which also drives up the final selling prices of both houses and apartments as construction costs rise. It should be noted that increased construction costs are also a problem for those who renovate or upgrade properties,” he added.
However, Kineiro said the council took important steps in 2022 to address critical issues that have plagued both real estate agents and the general public for years.
One example is that title deeds will now include a clarifying statement that the overall appraisal is only useful for tax purposes and does not reflect the market value of the property.
At the same time, Kineiro said that the council continues to publish information about all legal entities and individuals convicted of illegal real estate brokerage.
“It is gratifying to see that our actions to combat illegal activities are paying off, as, on the one hand, we are seeing an increase in the number of cases brought to court, and on the other hand, higher fines imposed on convicts,” he said.
Meanwhile, the council president also recalled that the council launched its own online platform in the summer of 2022, providing a benchmark for secure deals and opportunities for the general public, as they can search and find properties exclusively from licensed real estate agents. He mentioned that the website already has thousands of properties and the platform is receiving traffic that is considered very satisfactory.
“We also attach particular importance to the training of real estate agents . Therefore, as part of our close cooperation with the Department of Lands and Surveys, we have held various seminars that contribute to the transfer of valuable knowledge regarding the management and use of useful tools for real estate professionals,” he concluded.
