CYPRUS Trends and Developments Contributed by: Marios Konstantinou and Stalo Konstantinou, George K. Konstantinou Law Firm
to build and sell. Their clientele mainly compris - es non-Cypriot buyers. Indeed, a present concern is the inability of Cyp - riots/locals to buy real estate due to rising pric - es; they cannot afford their own homes, whether houses or apartments. Some have dealt with this problem by remaining in rented property or mov - ing to the countryside, even in remote areas. Limassol shows a downward trend in real estate investments, and the real estate market in Fama- gusta is also weakening. Large companies have turned towards Larnaca for real estate, especial - ly those in the services sector, because of Lar - naca’s location and qualities and the relatively low real property prices. Larnaca contains the Republic’s largest airport, is the second major port after Limassol, and is just a 25-minute drive from the capital, Nicosia. However, real estate prices are below those of Limassol and Nicosia, making Larnaca an excellent alternative choice for investors. Complications Cyprus’s real estate sector is mainly character - ised by complications. In a speech in Athens on 31 January 2025, the current Minister of the Inte - rior said that such complications are caused by the rise of foreign investment in real property and the use of Airbnb. He underlined that Cyprus is trying to promote a housing policy and increase the number of available housing units through building incentives. The Ministry is even consid - ering requesting the EU Commission to create a special housing unit at the EU level. Foreign buyers trust the Cyprus real estate market Meanwhile, foreign buyers show unremitting interest in the Cyprus real estate market, with nearly 50% of real estate purchases being made
by foreigners in 2023 and 2024. The press takes this as evidence of the trustworthiness of the Cyprus real estate market. Reports from press, regulatory bodies and entrepreneurs Reports in the press suggest that demand is stable for apartments, which show an annual increase of 1.5% for both sales and rental prices. House prices show a slight increase while house rentals are decreasing. Similar falls are reported concerning warehouses and commercial proper - ties. Construction costs remain high. The Cyprus Scientific and Technical Chamber (ETEK) is responsible for the licensing and mon - itoring of architect, civil engineers, evaluators and others in the construction and real estate fields, and summarised the current concerns in the January 2025 issue of its official periodical. The main problem is affordable housing. Others are the untested efficiency of the newly formed District Local Government Organisations (see below), the need to increase inventory, building misregulation, buildings in environmentally sen - sitive areas, dangerous buildings, cultural herit - age and complex bureaucracy. Real estate entrepreneurs argue that a feasi - ble plan to reform the real estate market must include an estimate of the amount of land need - ed to meet needs, but such an estimate is not currently available. They also mention two fac - tors that upset the market: banks confiscate real estate and later sell it at low prices, while con - struction costs remain high. Legislation and government policies Reform, policy formation and the aim for trans - parency in and simplification of procedures are the primary elements of the government approach to real estate in 2025. Moreover, relief
309 CHAMBERS.COM
Powered by FlippingBook