Landlords urged to be reasonable when pricing rentals, KNEWS

Marinos Keynegirou, the president of the Real Estate Registration Council, warns of escalating prices and dwindling demand in the real estate market’s fourth quarter. He points out that these high prices are discouraging foreign investors, specifically Israelis and Lebanese, who are opting for more affordable locations, including occupied territories. Keynegirou emphasizes the significant risk of potential property vacancies, creating what he describes as a “perfect storm” in the real estate sector.

– You mentioned in a recent article that the real estate market has slowed down, and there are signs of stagnation. What is your basis for this statement?

– As you rightly pointed out, we have documented that the real estate market in Q4 2023, or if you prefer, in the last quarter of the year, has slowed down significantly compared to the performance recorded up to Q3. As the Land Registry Council, we expected the market to pick up speed, and it was something we highlighted as part of the Department of Land Registry and Surveying’s comparative sales analysis published each quarter. Demand, both from the domestic market and overseas buyers, is affected by high prices. As you are well aware, prices had increased, especially after the war that broke out in Ukraine at the beginning of 2022, for reasons such as the cost of raw materials and construction materials, energy costs, and general inflation. At the same time, we had low supply despite increased demand. But the prices we see today have, in our view, gone beyond the bounds of reason. I know it may sound a bit harsh, but excessively high prices are pushing foreign investors to the occupied territories and other destinations where prices are lower. Many say we were affected because of the war in Gaza. We do not agree with this view because we simply see Israelis and Lebanese investing more and more in the occupied territories of our country.

– What do the figures on property sales show?

– During the period January-September 2023, the real estate sector maintained its momentum despite the accumulated challenges it faced. As demonstrated by the comparative sales data of the Department of Cadastre and Land Surveying, processed and presented quarterly by the Board of Registration of Real Estate Agents, in the first nine months of 2023, there were 8,681 property transfers with a total value of €1.4 billion and 9,374 sale documents with a total value of €3.3 billion. Looking at the values, Limassol is the strongest province, recording €462 million in transfers and €1.85 billion in sales documents in the nine months. Nicosia province recorded the most property transfers worth €409 million but is fourth in sales documents, both in terms of transaction volume and value. Paphos province maintained its momentum, recording a total of 1,063 transfers worth €165.3 million and 2,027 sales documents worth €632 million in the first nine months of 2023. Larnaca province recorded a strong…