Housing sales slow due to inflation and construction costs

The value of transactions in the real estate sector amounted to €1.52 billion in the second half of the year, with the market bearing the impact of the interest hikes, inflation and the increased construction cost.

According to data compiled by the Council for Registration of Real Estate Agents, transactions in real estate amounted to €1.7 billion in the two previous quarters.

Marinos Kineyirou, the Council’s President said the real estate market has shown resilience, but “challenges are increasing and should not be underestimated by anyone.”

“The real estate sector has a large contribution in the economy and the government should find to strengthen the sector with a view to maintaining its momentum,” he added.

According to the data, 5,974 transactions were made with a total value of €1.52 billion, which were lower than the first quarter of the same year, both in terms of value and transactions.

Compared with the second quarter of 2022, the number of transactions were broadly the same but the value rosed significantly, driven by the increased prices. The value of real estate soled in second quarter of last year was 1.2 billion.