16.09.2023
Prices on the Cyprus real estate market have been rising in recent years. This growth is mainly due to the increase in the cost of building materials and growing demand. As a result, both rental prices and sales of houses/apartments are rising.
Recently, it has become noticeable that many property owners, developers and individuals are demanding unusually high selling prices and significantly higher rents for their properties.
Data from the Central Bank of Cyprus for the first quarter of 2023 is indicative. Their house price index shows an increase of 7.7% compared to the same quarter last year. In particular, housing prices increased by 6.6% annually, and apartment prices by 8.4%. This increase is significant considering, for example, that an apartment that was valued at €150,000 in the first quarter of 2022 is now selling for €163,000, and a house that was priced at €250,000 is now selling for €265,000.
This situation is concerning, especially because higher interest rates make it harder for people to afford a home or apartment. In addition, rising rents are straining tenants’ finances, creating serious problems for them.
Real estate agents who regularly interact with sellers, buyers and tenants often encounter complaints about the prices offered. In recent months, many colleagues have come under criticism from potential buyers and tenants. It is important to note that real estate agents do not set sale or rental prices for apartments and houses.
The Estate Agents Registration Board is committed to clarifying these roles in the property market in the near future. However, excessive price increases should not be left to chance as they can harm the entire sector and the economy.
