15.02.2023
Increasing the affordability of real estate can help curb rising rental prices.
According to a report by Cypriot fintech company Ask WiRE, which again highlights the problem of vacant real estate, an additional 10,180 apartments could be created in the city of Nicosia, which could reduce the rise in rental costs and a sharp increase in property prices.
In particular, the company has carefully studied the Acropolis area to identify potential room for growth in the total number of apartments, as this part of Nicosia is one of the most central and sought-after areas of the capital.
“In an attempt to demonstrate the seriousness of the problem caused by unused properties in the city centers of Cyprus, in terms of rental and purchase prices for houses and apartments, Ask WiRE extended its investigation to the capital, this time focusing on the Acropolis area,” the company said.
“The aim of this series of investigations is to pinpoint and highlight the negative impact that land accumulation, coupled with issues regarding property building ratio, can have during a time of increased demand for real estate,” it added.
The company recently conducted a similar investigation in the Papa area of Limassol, where it identified land suitable for construction, excluding roads, parks and other such land. He also calculated the building ratio and removed any existing, under construction, or planned buildings.
In addition, all commercial areas and uses have been removed for clarity, so that the final figures are exclusively residential areas.
“The results of our analysis in the Acropolis area show that only 53% of the allowed development ratio is being used,” the company said.
“If we calculate the average area of apartments at 100 square meters, excluding terraces and storage areas, it follows that another 10,180 residential units can be built, which will increase the existing number of units by 110 percent,” he added.
According to the company, 2,369 land plots with a total area of 1,689,921 square meters have been identified in the Acropolis area. On these land plots, the company has identified 9,240 residential units with a total area of 1,131,791 sq. Based on the existing urban development zones, it is possible to build objects with a total area of 2,149,741 sq. Thus, it turns out that the available land or real estate with underutilized building ratios is 1,017,950 square meters.
“After analyzing just two districts in the center of Limassol and Nicosia, we noticed that in total more than 18,000 residential units can be available for purchase and rent by the public, with all the corresponding consequences, both for rental prices and for purchase,” said Ask WiRE CEO Pavlos Loizu.
“Now it is clear that the problem must be solved, and the solution is simple. As we have mentioned in the past, this can come at the expense of taxing unoccupied properties in high demand areas. Thus, the owners of this land will either continue to use it or provide it to third parties, who, in turn, will be able to develop it themselves,” he added.
Loizou clarified that the company’s proposal does not concern the taxation of the main place of residence of people or property belonging to small owners, but concerns the issue of an inexhaustible building coefficient.
“It is becoming clear that in the coming years the issue of high real estate prices will become even more acute in the suburbs of large cities,” said Luazou.
“In addition to the impact on prices, I dare say that the use of this buildable land would also be beneficial in terms of traffic, given the fact that many people who currently live outside urban centers are forced to commute to the city center. every day to work,” he concluded.
