Real estate sales decelerate due to rates, inflation and construction cost

07:58 - 12 July 2023

Real Estate Reporter

The value of transactions in the real estate sector amounted to €1.52 billion in the second half of the year, with the market bearing the impact of interest hikes, inflation, and increased construction costs.

According to data compiled by the Real Estate Agents Registration Council of Cyprus, transactions in real estate amounted to €1.7 billion in the two previous quarters.

Marinos Kineyirou, the Council’s President said the real estate market has shown resilience, but “challenges are increasing and should not be underestimated by anyone.”

“The real estate sector has a large contribution to the economy and the government should find to strengthen the sector with a view to maintaining its momentum,” he added.

According to the data, a total of 5,974 transactions were made with a total value of €1.52 billion, which were lower compared with the first quarter of the same year, both in terms of value and in terms of transactions.

Compared with the second quarter of 2022, the number of transactions was broadly the same but the value rosed significantly, driven by the increased prices. The value of real estate sold in the second quarter of last year was 1.2 billion.

(Source: CNA)

Real estate sales decelerate due to rates, inflation and construction cost

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