How can we deal with the problem of uncontrolled increases in rents?
Things are quite clear. Rent rises have taken uncontrollable dimensions. The situation in Limassol is tragic, with Nicosia following suit, while of course the situation in other towns is also problematic.
We are now at a point where a onebedroom flat is rented out, that is of course if one is able to find one, for EUR 600 to EUR 1,000 a month.
Meanwhile, evidence points continuation of the upward trend, rents will continue to rise.
According to available data, rent prices have risen in the last year by an average of 10% to 25%. There are, of course, cases, for example in areas close to universities, where rental prices have doubled and therefore the growth rate is much higher.
The main reason behind this huge increase is the increased demand for flats and houses for rent and the limited supply in the market.
The situation is even worse when it comes to finding apartments and residences for rent, while when it comes to renting an office, things are somewhat better. Even though the increase in rental rates for offices is also significant, you will still be able to find an office to rent.
As mentioned earlier, Limassol has witnessed the highest increase in rents due to interest shown by foreigners and, of course, the operation of the university.
The most expensive areas to rent a housing unit, are those near universities, while renting an office is more expensive in and around town centres. Things are more or less as described above.
One would be right to wonder whether there are solutions or are things going to be left to take their own course?
Surely the issue will not be solved from to that a is one day to the next, but there are solutions that can correct the situation, as long as they are implemented methodically.
Here as some of the solutions proposed: Increase of the supply of real estate for rent. This will gradually be seen in the completion of apartment buildings under construction.
The promotion of student dorms to cover the needs of students, as the problem is more acute in the areas near universities.
The “Affordable Residence” scheme as announced by the Minister of Interior, Constantinos Petrides surely offers a way out. We hope the project will be put into motion as soon as possible and will not remain on paper.
Illegal rentals on a daily basis, which is taking on uncontrollable dimensions, has caused rental prices to rise and is sure to cause a problem for hotel occupancy rates. Therefore, the competent authority should take measures to control this phenomenon.
With the current situation in Cyprus and with property prices on the rise, it is certainly no longer possible for people of the lower and middle social strata of society to acquire their own roof.
Consequently, the only option left for these people is to rent. But when rent prices are so high, everyone understands that neither this solution offers a way out for the low-to-middle strata of society and young couples who are now setting off to make their home.
Before we find ourselves in deadlocks that will create further problems, we should proceed in a planned manner with concrete measures to deal with the current situation. There are solutions, as long as we act in a timely manner determined to implement them. The writer is President of the Council for Registration of Real Estate Agents - Property Auctioneer of the Cyprus Land Registry