In Cyprus, in addition to skyrocketing property prices, the cost of home repairs rose markedly. This refers to both eliminating household emergencies and maintaining the efficiency of utility systems.
Experts note that the main reason for the increase in repair prices was the rise in the cost of building materials. In addition, trades people (for example, electricians and plumbers) are charging more and more for their services.
According to statistics, over the year, plumbing work rose in price by 20.8%. In June 2022, however, prices were only 4% higher than the same period last year. In turn, in June 2021, the cost of work was the same as in 2020.
Electrician’s rates increased as well—by an average of 21.3% over the year. Note that in 2022, the cost was the same as in June 2021.
The cost of painting jobs increased by 11.6% over the year.
Rising repair prices may affect the real estate market. One of the reasons for the popularity of Northern Cyprus among overseas investors is the high rental income—it currently ranges from 6% to 8%. However, an increase in housing maintenance costs can adversely affect the returns of properties.
That said, experts note that the growth in prices for building materials reached its peak back in February 2023, and since then the rate of increase has noticeably slowed down. Moreover, another important factor for investment in real estate—a stable increase in the cost of housing—does not raise concern. The most optimistic projections even suggest that Northern Cyprus could follow in the footsteps of Dubai and Spain, becoming one of the key destinations for overseas investors.