29.03.2023
“Rising construction costs, additional costs associated with the transition to green regulation, the risks associated with climate change and rising interest rates constitute the new reality,” said Kikis . Athinodorou , director of Kikis Athinodorou & Associates LLC.
Having fixed the course of real estate prices on our island, Mr. Athinodorou proceeded to review the current situation in Cyprus and the expected trends for the future.
In his speech at the 17th Conference and Exhibition on Land Management, Design and Construction of Buildings entitled “Property Prices in Cyprus: Past, Present and Future”, the CEO introduced to the audience in particular how property prices have changed historically from 1995 to 2022 year and what factors will affect them in 2023, given, among other things, rising construction costs.
Initially, he said that even in 1992 real estate prices were relatively low compared to the median income. After the collapse in stock market prices, there was intense investment activity in the real estate sector, which led to an upward trend in prices. 2008 saw the highest demand and highest prices in the real estate sector in 40 years. The banking crisis of 2013 and the reduction in deposits led to an increase in property prices and a drop in sales.
The pandemic has triggered changes in consumer behavior and choices, he added, leading to today’s global political instability and upheaval for humanity.
Outlining the new reality, Mr. Athinodorou mentioned the rising cost of construction, the incremental costs associated with the transition to green policies, and the risks associated with climate change and rising interest rates. He also mentioned the changes that the next generation has recorded in terms of their behavior and purchasing choices.
Director of Kikis Athinodorou & Associates LLC finally emphasized that the current situation is characterized by global economic instability in the banking sector and international political instability, which constitute a new environment.
