Economic inequality

Residential property sales in Cyprus hit a 15-year record high in the second quarter of 2023, with a significant increase in prices, according to data released this week by the Central Bank of Cyprus.

The problem of many people in finding affordable housing has become a pressing issue in almost all the major cities of the West. The government has taken and continues to take measures to support young would-be property owners or tenants.

The government plans to make total funding of 1.5 billion euros available over the coming years as part of its goal to reactivate social housing.

Finding an affordable housing in Istanbul is becoming increasingly difficult for low- and medium-income groups with rent prices in the city rising fast.

A recent survey found that the average rent price of a 100 square meter house in Istanbul climbed to 16,000 Turkish Liras ($589).

Greece trails other Mediterranean EU countries in per capita wealth, according to the 14th edition of the Global Worth Report issued by Swiss Bank UBS, joined this year by Credit Suisse, which it acquired a few months ago. 

The conclusions of a survey on income inequality in Greece have shown that low-income areas with poor living conditions and residents dwelling in smaller homes were more vulnerable and had higher Covid-19 mortality rates compared to more affluent municipalities with better housing and living conditions.

The appeal of the support program for young people looking for affordable housing proves the necessity of the measure.  

However, subsidies will not have the desired effect as long as property prices remain so high. A holistic plan is needed that will both increase the housing stock and correct the excesses of the market. 

While the government was carrying out a housing move for low-income citizens with the "My First Home My First Workplace" social housing project, a model proposal came from the private sector to support their housing needs.

The property boom is coming to an end, according to a study by Swiss bank UBS, with Frankfurt and Toronto topping the list of imbalanced markets.

The bank's annual study of the world property market looked at prices in 25 major cities across the globe.

The residential property market is on the government's radar, while excessive price movements are being closely watched, Treasury and Finance Minister Nureddin Nebati has said.

A comprehensive study on the sharp increases in the real estate market has been launched, Nebati said. "We are doing and will continue to do what is necessary."