The acceleration in house price increases have as the main cause of increased construction costs, which reflected in the increase in the prices of both prices of both apartments and houses. Although in annual terms increases in apartment prices are higher than the annual increases in house prices than those of houses in all provinces, it is worth noting it is worth noting that house prices are now also showing an upward trend increases. For the first time since the outbreak of the pandemic in all provinces have seen year-on-year increases in the prices of both apartments and houses, indicative of the upward trend in prices across the entire spectrum of the housing market.

Demand in the real estate market in the second quarter of 2022 recorded an upward trend (both domestically and from the abroad), while there were indications of a downward supply. The war in Ukraine intensified the inflationary pressures, with a significant impact on the cost of construction, but this does not currently appear to be has had a negative impact on demand. In the medium term, the increase in the cost of borrowing due to rising interest rates, as well as the erosion of incomes due to inflationary pressures are expected to reduce demand, but without necessarily reducing prices, which in the at this stage are characterised by an upward trend due to construction costs.

The AirBnB market has been a bright light in the real estate industry during the last year, with holiday properties that have been listed helping to markedly increase their rental income. In fact, for the first time since the outbreak of the pandemic, all district rental markets are showing a year-on-year increase. It is likely due to travelers shifting from international options to domestic and local destinations, no doubt aided by more competitive pricing on short-term rentals. Furthermore, occupancy rates are now surpassing pre-pandemic levels, especially in areas that offer attractively located properties near tourist spots or city centers. All of this suggests an upward trend for those that own holiday properties and utilize AirBnB listings for increasing their rental income potential.

Cyprus has seen a surge in economic development over recent years largely due to the number of well-known forex and tech companies that have relocated their headquarters to the island. Companies based in Cyprus benefit from exceptionally low taxation and this, combined with the many other advantages of setting up in one of Europe's most picturesque regions, has naturally attracted some very big names. The increased presence of these corporate giants has undoubtedly had a knock-on effect on the local property market with an increase in demand for housing and office space! Property developers have responded to this rise in need by building more modern complexes as well as renovating existing properties to meet the demands of prospective tenants. Cyprus truly is a tax heaven which stands to benefit foreign businesses and residents alike.