Marinos Kineyirou, President of the Cyprus Real Estate Agents Registration Council, has sounded the alarm about the dire housing situation in Cyprus, calling for urgent intervention. Kineyirou emphasized that the data paints an alarming picture that demands immediate attention, stating, “Numbers tell the truth.”
This housing crisis is not unique to Cyprus but is a pressing issue faced by many developed countries. Even in countries like the United States and the United Kingdom, home ownership, especially for young people like millennials, is becoming increasingly challenging.
Kineyirou highlighted various contributing factors, including ongoing global economic developments, demographic shifts, and increased life expectancy, which delays the release of existing properties onto the market for sale or rent. Additionally, the European Central Bank’s monetary policies, designed to combat inflation, have led to a significant increase in housing loan interest rates.
The rise in property prices is driven by increased demand from international arrivals due to the relocation of companies and personnel to Cyprus in recent years, which has further strained the housing market. Kineyirou pointed out that apartment purchase prices have risen by about 12% in just a year, and rental prices have surged by approximately 20%. Property owners are taking advantage of high demand by demanding prices that often exceed reasonable levels.
Furthermore, recent turmoil in Israel is expected to bring more Israeli residents to Cyprus, making it crucial for the government to take immediate action and create a comprehensive strategy to address the issue. Kineyirou stressed that the government must focus on both long-term solutions and immediate remedies to ensure access to housing for the country’s residents.