Property rental prices in Cyprus continue to rise, and local officials are looking for ways to solve this problem.
For example, Marinos Kineyirou, head of Council for Registration of Real Estate Agents, said this week that the rental rates are getting worse in Cyprus as inflationary pressures rise and household disposable income shrinks.
At a time when everything is getting more expensive, we see that the whole issue is becoming a subject of discussion not only among the student community and their families, who rush to the urban centres to study, but also more widely among the rest of society, Kineyirou said.
The head of the Council for Registration of Real Estate Agents stressed that in some cities of the island, rental rates have already reached a critical level, while in others they are moving along the growth trajectory. The demand for rental property in Cyprus has grown due to the massive relocation of employees of foreign companies, mainly from Ukraine, Belarus and Russia. Moreover, most of them are now based in Limassol.
According to Kineyirou, high rental prices are a serious problem that will sooner or later affect all residents of the island.
The easiest way to lower rental rates is to increase the number of offers, which means building more properties that at some point will satisfy existing demand and allow the market to self-regulate.
However, according to Kineyirou, the increase in supply can be achieved in other ways, which can encourage landlords to put up more properties for rent.
In this context, the Council for Registration of Real Estate Agents has recommended the introduction of a new tool that will allay the fears of those who have previously rented their property and encountered unscrupulous tenants who did not want to pay rent or caused damage to their property.
The strengthening of the legislation and the creation of the register, combined with an increased property supply in the real estate market, will allow the situation to improve and gradually facilitate the normalisation of rental prices, the head of the council said.
Council for Registration of Real Estate Agents has expressed its willingness to take over the management of the register of troubled tenants and make it available to all professional and licensed real estate agents.
The idea is to include in the register tenants who have been reprimanded by the courts for non-compliance with the terms of the lease.
This will allow licensed agents to become aware of clients with bad rental histories. Having such a registry would also help investors regain confidence in the sector.
Strengthening legislation and the creation of a registry, combined with an increase in the supply of real estate in the real estate market, will improve the situation and gradually contribute to the normalization of rental prices, Kineyirou concluded.
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