The prices of raw materials and construction materials remain at their zenith, as a result of which real estate presents particularly steep costs and at the same time, interested buyers avoid their purchase like the devil and incense and proceed to some more economical solution, having as a first choice, of course, the apartments, either inside or outside the city, which are of course also cheaper.
The increase in prices in the construction sector within a few months, even led to a decrease in the construction of private houses and at the same time, an increase in the construction of apartment buildings. After all, speaking with numbers, according to the price index of construction materials, comparing the last month with the corresponding one of the previous year, the index registered an increase of 14.26%. By main product category, increases were recorded in metal products (16.74%), minerals (13.52%), mineral products (13.39%), wood, insulating, chemical and plastic products (12.91 %) and in electromechanical items (11.72%).
Due to the above increases, which also lead to an increase in real estate prices, most young people are now interested in buying an apartment, rather than buying a house. In statements he gave to REPORTER, the president of the Federation of Associations of Building Contractors of Cyprus, Stelios Gabriel, said that “the the first thought of young people today is to buy a small apartment, in or near the city and they have in their plans, that maybe sometime in the future to be able to buy a house. This happens for many reasons, the main reason being the financial part, since an apartment is cheaper and has less maintenance costs”.
This fact seems not to be found only in Cyprus, but is a trend that is presented and followed throughout Europe, with apartments being among the first choices, even of highly paid people, as they want to be within the city and most of them near their work. “There are very few people who want to build large houses outside the city today. So this trend is followed by us as well and thus everyone is destined for apartments. It is noted that the apartments have now evolved and are built with modern and green materials and are thus more friendly to the environment and to people, with various technology systems”.
In the private residence, Mr. Gabriel explained, there is the advantage of proceeding to build the residence with plans, while you will buy an apartment and adjust your needs with the money you will give. “The cost of construction depends on many sectors, depending on the needs of each. But it seems, that the next six months will be decisive, to show the course and how the situation will progress. My own assessment is that there will be a recession, as is the Treasury and the E.U. hopefully, with a more general recession in the economy, so I don't think the financial sector will be unaffected”.
At the same time, there seems to be a stagnation in property prices which are at high altitudes, although there has been a slight decrease in the prices of some construction materials. However, as Mr. Gabriel pointed out, “at the same time there has been an increase in other materials, with the result that costs remain high and stagnant, with no reductions that are obvious. The construction industry, or the land development industry, is not in a recession and has shown no signs of recovery and it is because other factors affected, such as the war in Ukraine, since many companies came to Cyprus on a permanent basis”.
One suggestion that is on the table, however, is that incentives could be given for the creation of green buildings. , so that several smaller apartments and houses can be built, so that there will be an abundance of real estate offers. “It is a proposal that can be implemented, as we see that there is already an increase in rents and there seems to be a particular problem again for many young people”.
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