Rising Cyprus Property Prices: A Cause for Concern
Rising Cyprus Property Prices
In recent times, property prices in Cyprus have been going up more than what is usually expected. This trend has caught the attention of experts like Marinos Kineyirou, the president of the Council for Registration of Real Estate Agents. He shared his thoughts on the matter, drawing upon his extensive experience in the Cypriot real estate market.
Current Data
Kineyirou noted that many property owners, land developers, and individuals are now asking for very high prices when selling or renting their properties. He stressed that these prices don’t fit the usual patterns seen in the Cypriot Property Market. Recent data from the Central Bank of Cyprus supports Kineyirou observations. The House Price Index shows a significant 7.7% increase compared to the same period the previous year. Housing prices have gone up by 6.6% annually, and apartment prices have risen by 8.4%.
To give you an idea of these increases, imagine an apartment that was valued at €150,000 in the first quarter of 2022. That same apartment is now being sold for around €163,000. Similarly, a house valued at €250,000 is now priced at approximately €265,000.
In places like Limassol, where property prices have surged the most, real estate sales reached almost €500 million in the second quarter of 2023. Most buyers were interested in apartments priced between €100,000 and €500,000. In the capital, Nicosia, there were various property sales, with a considerable portion falling within the €100,000 to €200,000 range.
Kineyirou expressed concerns about these trends, especially as households face financial challenges due to rising interest rates and general inflation. He emphasized the importance of understanding that real estate agents do not set property prices; however, the significant price increases are worrying and need attention to prevent negative impacts on the property market and the economy.
Verdict
The Council for Registration of Real Estate Agents is determined to raise awareness about roles and responsibilities within the property market while addressing these concerning market dynamics.
