By the beginning of 2023, the island nation's residents gradually began to get used to the fact that prices would never be the same again. And Cypriots met the holidays with a willingness to save money.
Literally everything went up in price: housing, rent, food, clothes, fuel, cars, electronics and loan rates . Having learned from the experience of recent years, consumers are forced to count and plan.
The feelings of everyday people are reinforced by statistical research.
According to the merciless data of the Cypriot research portal Cystat, the Industrial Production Price Index for November 2022 compared to the corresponding month of 2021 increased by 17.2%. Disruptions in the supply chain of raw materials and commodities continue to affect the economy and prices. The Central Bank of Cyprus forecasts that inflation could rise to 8.1% from 2.3% in 2021 and gradually decline to 1.8-3.3% by 2023-2025, as we all hope and believe.
Gasoline prices peaked in the summer of 2022, but dropped 40% in late December to around the January level of early 2022, which can be attributed to the Cypriot government's decision to reduce fuel tax levies until January 15, 2023. A liter of 95 octane gasoline in early January 2023 costs approximately €1.4 per liter.
In addition, island residents continued to buy luxury and regular cars during 2022. At the same time, the total number of car registrations decreased from 25067 in 2021 to 24902 cars in 2022.
According to online platform Numbeo, by the end of 2022, the most economical city in Cyprus, excluding rentals, is Nicosia.
And the most expensive is Limassol.
Renting a home in Cyprus in 2022
Most of all the surge in prices is now felt by tenants of real estate. The most ordinary apartment today rented at a price 2 times higher than in January 2022. Fortunately, this trend concerns mainly large settlements. For example, the city of Limassol has become the center of attraction of a wave of migrants from Russia and Ukraine, as well as large international companies attracted by the new tax program of the government. In neighboring cities - in Paphos and Larnaca - prices jumped about 1.5 times.
According to the database of real estate agency DOM, prices for 1-bedroom apartments in January 2023 are as follows:
- Renting a 1-bedroom apartment in Limassol today averages 1500 thousand euros.
- Renting a 1-bedroom apartment in Larnaca ranges from 600 to 1300 euros.
- Renting a 1-bedroom apartment in Nicosia ranges from 550 to 670 euros.
- Renting a 1-bedroom apartment in Paphos ranges from 600 to 1500 euros.
- Renting a 1-bedroom apartment in Famagusta is from 340 euros.
Buying a home in Cyprus in 2022
Against the backdrop of a fading pandemic, buying activity by locals and foreigners rose significantly last year. According to the Land Registry 13,409 homes were sold in Cyprus last year and 10,347 in 2021. Meanwhile, average prices per square meter rose the most in Limassol, Paphos and Larnaca.
According to the head of the Cyprus Association of Real Estate Agents Marinos Kinegirou, three main factors contributed to the increase in demand:
- Russian-Ukrainian conflict,
- new government programs to attract business,
- subsidizing interest rates by the government in the purchase of housing for certain categories of citizens.
On what awaits the real estate market in 2023, experts are very cautious. Rising inflation and higher interest rates on housing loans may restrain investor demand. Everyone wants clarity and certainty.
According to the database of real estate agency DOM, prices for 1-bedroom apartments in January 2023 are as follows:
- The cost of a 1-bedroom apartment in Limassol today starts from 122 thousand euros.
- The cost of a 1-bedroom apartment in Larnaca starts from 110 thousand euros.
- The cost of a 1-bedroom apartment in Nicosia from 95 thousand euros.
- The cost of a 1-bedroom apartment in Paphos from 94 thousand euros.
- The cost of a 1-bedroom apartment in Famagusta from 74 thousand euros.
How the prices of products will change in 2022
According to the Consumer Protection Service of Cyprus, last year the prices of fresh meat and dairy products increased the most. Beef or lamb rose in price by about 2 euros and now cost an average of 10 euros per 1 kg, and 1 kg of chicken costs 8 euros. A pack of eggs (6 pieces) costs 1.6-4 euros. A liter of milk costs at least 1.45 euros, and used to cost about 1 euro. Yogurt (500 g) - 2.29 euros. A pack of water (12 bottles of 1.5 liters) - 2.15 euros. Bread (500 g) - 1.45 euros.
Fresh croissant (95 g) - 89 cents. Sugar - 1.4 euros. A pack of butter (250 g) - 3.5 euros. A bottle of sunflower oil is €3.29 and olive oil is €6.79. Spaghetti (500 g) - 1.25 euros. Frozen pizza (350 g) - 4.5 euros.
Avocado (1 kg) - 2.63 euros. Broccoli (1 kg) - 4.69 euros. Tomatoes (1 kg) - 1.79 euros. Cucumbers (1 kg) - 2.09 euros. Young potatoes (1 kg) - 1.3 euros. Apples (1 kg) - 2.75 euros. Bananas (1 kg) - 2 euros. Oranges (1 kg) - 2 euros.
The average Cypriot family of four spends about 500-600 euros a month on groceries. In practice, the amount is related to the preferences and capabilities of the household. Say, vegetarians do not buy expensive seafood from the northern seas, but they probably visit specialized restaurants more often and generally choose more expensive products. It remains to be noted that the Cypriots' favorite daily activity - chatting with a friend over a cup of aromatic coffee - is quite economical, only 1.5-3.5 euros depending on the establishment.
Beauty and health expenses
Perhaps one of the main spending lines of Cypriots is beauty. Both women and men spend a lot of time in beauty salons, hairdressers and sports clubs. A haircut with styling costs from 10 to 40 euros. Manicure - from 20 to 50 euros. A subscription to a sports club for one month - from 50 euros. In order that in 2023 the costs will not rise much, we recommend going to the same place. Cypriots will appreciate it. The unspoken rule - raise prices only for newcomers - is firmly planted in the minds of many local businesses.
And about healthcare in 2023. With the advent of Cyprus' state-run GHS health care system, residents' monthly health costs have dropped significantly. If previously for a visit to the therapist, it was necessary to lay out 30-60 euros, today for those who joined the GESI it is free of charge. In the middle of 2022 expanded the list of doctors-specialists and drugs at a special price.
The cost of living on the island by the end of 2022 has certainly gone up. It is time to plan your spending more clearly and consume more consciously. At the same time, Cyprus continues to actively develop and becomes more and more attractive for living and investment.
Interested in accommodation in Cyprus? Check out DOM! The agency's website has the largest real estate database in the country - more than 30 thousand residential and commercial properties all over the island! Here you will find information about the latest development projects. Choose and contact professional brokers who will help you make the right choice!
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