The Cyprus property market appears poised for a challenging year, marked by organic, market-driven price reductions, which may be offset by supply chain disruption, stemming from geopolitical conflicts, according to the president of the Cyprus Council for Registration of Real Estate Agents Marinos Kyneyirou.
In a recently published piece of analysis, Kyneyirou said that 2023 was expected to be difficult due to the many issues that persisted from 2022.
“We can still see that the lingering effects of the 2020-2021 pandemic and the eruption of the conflict in Ukraine in February 2022 continue to cast a shadow on the market,” he said.
Moreover, the persistently high inflation triggered significant interest rate hikes by the European Central Bank (ECB) throughout 2023.
This resulted in a continuous rise in borrowing costs until October when interest rate increases halted.
At the same, he added, construction material costs remained elevated compared to pre-pandemic levels.
“Despite these challenging conditions, the real estate sector demonstrated resilience, showcasing its ability to thrive in adversity,” Kineyirou said, citing data from the Department of Lands and Surveys, which is regularly processed and presented quarterly by the Council for Registration of Real Estate Agents.
According to the data, the first nine months of 2023 witnessed a total of 8,681 property transfers, amounting to €1.4 billion, and 9,374 sale agreements with a total value of €3.3 billion.