Today: March 26 2019
russian English greek latvian French German Chinese (Simplified) Arabic hebrew

All that you will be interested in knowing about Cyprus on our website
the most informative resource about Cyprus in runet
Mad rental of residential property rental prices in Cyprus

Mad rental of residential property rental prices in Cyprus

12 2018 June LJ cover – Безумный рост цен за аренду жилой недвижимости на Кипре
Tags: Cyprus, Real Estate, Economy, Statistics, Limassol, Protests

A sharp increase in demand for rental property, together with a small number of new apartment buildings, triggered a price spike. According to Politis, rental prices in Cyprus have increased over three years by 40%. The initiative group of tenants intends to go to protest June 23 June against high prices in Limassol. Will it help to reduce prices?

Why do prices grow? Seven Reasons

  • Difficulties in obtaining loans to buy housing in banks after the financial crisis 2013 year.
  • Instability in the real estate sector.
  • The influx of foreign citizens who rent housing.
  • The growth in the number of students.
  • Lack of activity in the sector of housing construction for the middle class.
  • A significant part of the apartments and houses are offered for rent on a short-term basis (for example, on the AirBnB website), which is more profitable than renting a house on a long-term basis.
  • Lack of a clear legislative framework that would guarantee the rights of homeowners. If tenants stop paying, evicting them is extremely difficult. Owners of real estate pawn in the rent risk to lose income for several months or even years - while the courts are going.

Compare prices by city

Before the crisis, it was decided after the wedding to buy housing, reminds Politis. Young Cypriot family took out loans in the bank, adding the remaining amount to the money that gave the relatives and friends to the wedding. Now, due to the difficulties in obtaining loans, young families are forced to rent housing. Agency specializing in the delivery of housing for rent, have concluded an acute shortage of apartments and houses, which the owners are willing to take the long term.

Comparison table

Mad rental of residential property rental prices in Cyprus

Limassol ranks first in Cyprus on the level of prices for rental of residential property. Followed by Nicosia.

According to Politis and interlocutors, many Cypriots forced to leave the city centers to the suburbs, or nearby villages, because they can not afford to pay expensive rent.

There are those who rent their own property in the city center or by the sea, rent money from modest housing on the periphery, and spends the difference on food, gasoline and entertainment.

Realtors unanimously assert that the rise in rental prices is not a soap bubble, which is about to burst. Prices in 2018 year have not reached their ceiling and therefore the growth of rates for rent will continue.

Typical rental rates in 2018

Housing in Nicosia and Limassol

  • With 1 bedroom - 500-600 euro
  • With 2 bedrooms - 750-800 Euro
  • With 3 bedrooms - 900-1000 Euro

Accommodation in Paphos, Larnaca and the Free Territories of Famagusta

  • With 1 bedroom - 300-350 euro
  • With 2 bedrooms - 400-500 Euro
  • With 3 bedrooms - 500-600 Euro

Students living near universities

The real estate consultant of G & P Lazarou, Tasula Vasiliadu, considers the main reasons for the increase in the demand for rental housing "an increase in the number of students from other countries, the influx of foreign labor - especially from Greece - and the inability of young families to acquire property because of difficulties with obtaining loans. "

According to Antonis Loizu, head of the company Antonis Loizou & Associates Ltd, rental prices in Cyprus over the past two years increased by 20%, and in Limassol - by 25%. One of the main factors of price growth is a small number of new objects. During the financial crisis in Cyprus, building volumes declined significantly.

The prices depend on the area in which the accommodation is located. For example, in Engomi there are two private universities, in which 15 thousand students are trained. Many of them are foreigners, they need housing. Therefore, the rental rates in Engomi are higher by 20-25% compared to other areas of the capital, explains Mr. Loizu.

Another situation in Aglange, where the University of Cyprus is located. It mainly trains Cypriots. They can live in the homes of their parents or relatives, and therefore travel from other areas of Nicosia. Accordingly, the rental prices in Aglange are lower than in Engomi.

I change long-term lease for short-term!

The head of the Cyprus Realtors' Registration Board Marinos Kineghiro believes that over the past two years, the rise in prices for the rental of real estate was 10% a year. In his view, the main reason for growth is the withdrawal of real estate from the long-term lease market in favor of short-term leases. Mr. Kineghiro emphasizes that a significant proportion of homeowners who rent it daily violate existing laws and create unhealthy competition for hotels.

Previously, rental housing was taboo for the Cypriot. If he owned the house, it was considered an example of consistency and prestige, - explains the head of the real estate company DanosReal Estate Panagiotis Danos. - Now everything has changed. If he finds a house that meets his requirements, then he takes it without hesitation.

Protest action against high rental prices

The initiative group of tenants decided to hold 23 June Protest action on the street Aneksartisias in Limassol.

That's enough! No high prices for rental housing for our lost generation! - the initiators of the action declare.

At this stage, the main purpose of the organizers of the protest is to draw the attention of the Cypriot authorities and the press to the problem of high prices for rental housing. Specific proposals on how to reduce rental prices until they are voiced.

At the same time, the idea of ​​reducing taxes for owners of apartments and houses, which rent them at prices below 800 euros per month, is expressed on the event page. Another proposal is to force the authorities to speed up the process of issuing permits for the construction of middle-class housing, which will allow developers to erect residential complexes more quickly.

G|translate Your license is inactive or expired, please subscribe again!