29.03.2023
According to Giannis Misirlis , director of Imperio Group , the huge demand for real estate as a result of the massive arrival of international technology companies on the island has not been met by a commensurate increase in supply, which is a problem for the industry.
Speaking at a round table at the 17th Land Management, Planning and Construction Conference and Exhibition, Mr. Misirlis noted that the number of foreign companies that either relocate their headquarters or simply open an office in Cyprus has increased significantly.
“Demand has increased, and this has led to higher prices for both apartments and offices,” he said. “We are seeing an unprecedented increase in rental prices, especially in Limassol and Nicosia, where demand is higher. One would expect the supply to increase as well. But this is not happening,” he said.
According to him, market conditions in recent years have created an explosive cocktail. “We have an inflation rate that banks are struggling to contain, a huge rise in construction costs – the price of raw materials is falling overseas, not here yet – and we have high interest rates that make financing construction projects unsustainable/unprofitable.”
As a result, many builders cannot or will not start major new projects,” he said. “If we want the country to remain competitive, we must solve this problem immediately. We absolutely need a proper housing policy. Since real estate is a free market, by increasing the supply, this will certainly reduce rental prices and make them more affordable, and we will be able to keep the price of buying an apartment or office,” Misirlis stressed .
He also urged the state to provide incentives not only to foreign workers but also to local residents in order to keep the dream of Cypriots of their own home. “This is even more necessary now that interest rates have risen,” he said.
