Real estate is slowing down sales due to interest rates and inflation.

Transaction volume in the real estate sector reached €1.52 billion in the second quarter of 2023, with the market being impacted by higher interest rates, inflation and increased construction costs. According to data compiled by the Real Estate Agents Registration Board, transaction volume in the real estate sector amounted to €1.7 billion in the previous two quarters.

Council President Marinos Kineirou said the real estate market has shown resilience but "the challenges are getting worse and should not be underestimated by anyone." "The real estate sector contributes significantly to the economy and the government must strengthen it to keep the momentum going," he added.

According to the data, the total number of transactions amounted to 5,974 deals worth €1.52 billion, down from the first quarter in terms of volume and number of deals. Compared to the second quarter of 2022, the number of transactions remained roughly the same, but the value increased significantly due to price increases. Real estate sales in the second quarter of last year amounted to €1.2 billion.

Only Nicosia and Famagusta showed an increase in the value of properties sold in the second quarter compared to the previous quarter. In Nicosia, the value of properties sold (€299.8 million) increased despite a decrease in the volume of transactions (1,549).