Companies based in Ukraine and Russia are relocating their staff to Cyprus, resulting in increased demand for housing units, especially in Limassol, a phenomenon that is expected to continue in the coming months, the Chairman of the Real Estate Registration Council Marinos Kineyirou, told CNA.

Kinegyirou was replying to CNA questions about the consequences of the war in the real estate sector of Cyprus.

Real estate agent Antonis Loizou, said that Ukrainian buyers were the most up-and-coming real estate market in Cyprus, while it is known that Russians have a large market share. Cyprus, he noted, is expected to be greatly affected from the war in Ukraine especially in the field of tourist real estate located near the sea, where prices are expected to fall or many properties may remain unsold.

"High prices in construction materials will continue for the next period and it is expected to have an impact on the final sale price of new properties and to cause complications in relation to buildings that were sold "on paper", under other market conditions and their construction will start now," Kineyirou said.

"Due to the energy crisis and rising prices internationally, there is a huge appreciation in the entire construction industry," he said, noting that the duration of the uncertainty caused by the war in Ukraine will be a decisive factor. He added that if the increased prices last for a long time, it will lead to an increase even in the prices of properties which are not newly built, which are currently only affected if they need renovation.

Loizou noted that prices are expected to increase for older housing units, which are expected to have more demand, as they are cheaper than new ones, while they are not charged VAT.

Moreover, the President of the Real Estate Registration Council told CNA that during the first two months of 2022 there was a 65% increase in property sales on a nationwide basis, in a market that had already improved in 2021.

He added that there is a significant demand for apartments in city centres, while there is a gradual shortage of large, quality offices. There has been no significant change in rental prices in recent months, he said.