25.08.2022
After two years of lockdowns and Covid restrictions, the momentum in the Cyprus property market is going through a cost-of-living crisis and rising commodity prices caused by the war in Ukraine, stakeholders say.
Marinos Kineirou, chairman of the Board of Real Estate Agents, said strong buying and renting demand coupled with limited supply is pushing property prices up.
Much of the demand comes from the domestic market, with local buyers eyeing older properties unaffected by rising raw material costs.
“In addition, we have great interest from Ukrainians and Russians, and the number of buyers from Israel and Lebanon is also increasing,” Kineiro said.
He added that the next few months could be difficult for the economy and the market if the international financial and energy crises worsen, but that property prices are not expected to fall.
In the second quarter of 2022, there were 5,442 sales registered in Cyprus, worth €1.2 billion , according to the Bulletin of the Property Registration Board .
Significant growth was also recorded in transactions with land plots for development.
In particular, 120 transactions were registered for a total of 127 million euros, which shows that land management entrepreneurs are planning and developing new projects to meet the growing demand.
The President of the Cyprus Association of Real Estate Agents, Andreas Kauris, said: “We are slowly entering the economic downturn, following the rest of the European countries.”
“Although it will be difficult to stop the buildup of momentum among local and foreign property buyers in Cyprus.”
“Unfortunately, the war in Ukraine has created opportunities with 25,000 Ukrainians seeking asylum in Cyprus.
“But a number of Russians also arrived from other countries, which led to an even greater increase in demand, which led to an increase in prices both for sale and for rent.
“Property prices have risen by about 25% in Nicosia and 40% in Limassol.”
