Real Estate in the Republic of Cyprus
In 2023, 541 apartment buildings began construction in the Republic of Cyprus. They will soon be completed, adding several thousand new apartments to the housing market.
A lack of decent housing is one of the problems Cyprus has faced in recent years. The shortage of supply has led to rising rents and property prices. High prices for building materials, inflation, supply chain problems and rising bank interest rates have also contributed to the rise in property prices.
Due to the ever-increasing prices and high mortgage rates, young Cypriot couples are less likely to buy houses and apartments. Foreigners moving to the island to work for international companies have faced the problem of finding decent housing at reasonable prices.
One of the main reasons for the rise in prices of residential недвижимость is the laws of the market, which wants the cost to rise when demand exceeds supply. In addition, many cannot afford to buy a house or apartment and are forced to rent housing, which leads to an overheating of demand in the rental market as well.
According to the collected and analyzed data on the construction of new apartment buildings, there was increased activity in the housing construction market in 2023. Over the past year, developers have started construction of 541 apartment buildings.
Data on the start of construction of apartment buildings in 2023
By month
January – 42 February – 38 March – 60 April – 54 May – 53 June – 50 July – 56 August – 35 September – 50 October – 39 November – 37 December – 27
By city
Limassol – 198 Nicosia – 165 Larnaca – 127 Paphos – 37 Famagusta Famagusta – 14
The increase in supply is expected to have a positive impact on the housing market.
Experts believe that the commissioning of new facilities will help to stabilize prices and reduce the growth rate. However, it is too early to talk about a significant decrease in the cost of housing.
The following factors will affect the further development of the situation:
- The pace of economic growth in Cyprus
- The volume of foreign investment in the housing market
- The level of inflation
- The cost of building materials
- The interest rate policy of banks
The government is taking a number of measures to address the housing problem.
These include:
- Providing subsidies for the construction of affordable housing
- Issuing льготные loans for the purchase of housing
- Simplifying the process of obtaining a building permit
The implementation of these measures is expected to improve the situation in the housing market in the medium term.
