16.01.2023
Since foreign demand is primarily directed to Limassol (approximately 70%), it is clear that it has benefited the most (market activity and rising values), but note the already prevalent negative impact on local residents.
No matter how the government tries to solve the rent problem, it is not enough. In contrast, an announcement from the new archbishop that the Church will develop student residences in Nicosia (following its 250-apartment project in Limassol ) has been providing some assistance.
So, 2023 will continue to support its hectic activity, mainly in urban areas.
In conclusion, we expect Limassol to continue to grow by about 5%, Nicosia to grow by about 3%, Larnaca by about 1-2%, Paphos by about 5% and Famagusta (tourism region) by about 5%.
While the Housing Index of the Central Bank of Cyprus records a negative impact on property due to increased construction costs and inflation/higher interest rates, it mentions that this is not necessarily reflected in lower demand or a negative impact on prices.
It seems that numerous ongoing infrastructure projects and foreign demand have insured against negative factors.
Anthony Loizou & Associates EPE – real estate appraisers and development project managers
