Real estate market thriving despite high interest rates

Rising interest rates have not hit the real estate market as sales are up by 36 per cent compared to the same period last year, according to Elikkos Elia, director of the Department of Lands and Surveys (DLS).

He detailed that sales are also up by 26 per cent when compared to 2019, explaining that rising interest rates have been offset by major demand from foreign investors.

Investment from abroad is up by 100 per cent for the first three months of 2022 compared to last year, he said, pointing specifically to IT companies headquartering in Cyprus – mainly Limassol – driving up demand for office and residential space.

“There is also increased demand for residential plots or land suitable for development in prime locations,” he added.

StockWatch reported that 12,074 sales documents were filed to the department up until November 2022, a 33 per cent increase from last year’s 9,063. That would make the 2022 period the most active since 2008 with its 14,043 sales.

Speaking at the annual conference of the Cyprus Association of Real Estate Agents (SKEK), Elia explained that major changes are underway at the department as part of the EU’s recovery and resilience plan.

The department’s central aim is to modernise the process for buying and selling real estate so that “the public, buyer and investor are properly informed”.

Elias stated that the department is working to simplify and speed up the process of issuing property titles.

Earlier this week, he said the department will modernise and update its records so that each property is assigned to its owner with their ID number.

He also praised parliament’s move late last month as it passed a law extending to the end of 2022 the protection afforded to ‘trapped’ property buyers.