What is the current status of Cyprus real estate?
In recent years, Cyprus has emerged as an attractive beacon for homebuyers and investors alike. This sumptuous Mediterranean island offers not only stunning natural beauty, but also a thriving economy and plenty of investment opportunities.
However, as a result of a more crowded housing market, finding a dream property at an affordable price has become a bit more complicated.
In a study conducted by Residential Property Price Index, it was revealed that house prices rose annually by 6.6% in the final months of 2022.
The price increases were especially noticeable in Nicosia (2.9%), Limassol (7.1%), Larnaca (3.3%), Paphos (10.4%) and Famagusta (4.2%), which all saw a notable increase on the previous year.
Wondering what caused the rise of housing prices over time? While a rise in demand for homes played a huge role, so too did the increased price of construction materials and higher interest rates.
And while demand is at an all-time high, supply for high-quality homes has diminished, as thousands of people compete to buy a home on this special island.
In turn, this has made it more difficult for the younger generation to find a home at a price they can afford. Instead, many aspiring homeowners have turned to renting as the more viable option, which has also contributed to a rise in rental prices.
The outlook for real estate in Cyprus might sound tough right now, but it’s not time to hit panic stations just yet. For starters, it’s worth noting that the price of real estate in Cyprus continues to be more affordable than in other parts of Europe.
There was also a huge amount of property sales in the month of May 2023, which saw property sales rise by 34% Year on Year. With the promise of even more new developments being built in areas like Limassol, there are also plenty of investment opportunities in the not-too-distant future.
According to Pavlos Loizou, CEO of Ask Wire, there could be a further light at the end of the tunnel. As competing foreign investors increasingly head to Cyprus, he believes the price of buying a property will stabilize in the second half of 2023, as high prices will lead to slower demand.
The price of buying a home in Cyprus might be higher, but there are still affordable options for people looking to live or invest in this popular area. With Chris Michael Property, you can enjoy a high-quality lifestyle by picking from our sleek selection of apartments to rent in Cyprus.