Rent: The factor driving down prices for students

The eventual reduction of students from Greece is expected to reduce demand and hold down or even push down the rent prices of student residences, according to industry professionals.

Speaking to Stockwatch, the CEO of FOX Property Services Giorgos Mouskidis, expressed the assessment that the prices of apartments aimed at students will fluctuate at last year's levels.

He noted, however, that the decision of the Greek government to give the green light to the establishment of branches of private universities in other countries will have a significant impact on student apartments, as well as on the Cypriot universities themselves.

"Possibly a significant number of the approximately 20,000 students from Greece will return to their country to continue their studies, but perhaps a significant number of Cypriot students who would like to study at private universities in Greece will follow."

However, he said that "although it is premature to express safe estimates, because foreign universities in Greece will operate from 2025 onwards, the vacuum that will be created will not be easily filled".

No significant difference in 2024

He noted that this year, since no significant change in the landscape is expected, rental prices will be at last year's levels, which remain stable or have slightly decreased compared to the three previous years when huge demand drove prices up.

In the province of Limassol, the decrease is 10% compared to the previous three years, which Mr. Mouskidis attributed to the fact that the imposition of sanctions on Russia by the West, forced the Russians to leave "a lot" as he put it , while at the same time, the number of Ukrainians who fled to Limassol at the beginning of the war also decreased, as he pointed out.

Rents are burning around universities

Indicatively, he mentioned that "around TEPAK, the rents in the private student residences for studios are from €500 to €650, for a one-bedroom apartment they start from €650 and reach up to €1000 for two-bedroom apartments €800 and above".

He explained that "at a further distance from TEPAK, the rent for a one-bedroom apartment can reach €800 or even €900".

Regarding student rents in Nicosia, he said that their amount depends on the age and condition of an apartment building.

"For example, with the necessary furniture in a 5- to 15-year-old apartment building, which is in good condition and a short distance from the University of Nicosia and the European University, the rent for a studio ranges from €500 to €650, for an apartment of one bedroom from €600 and above and for a two-bedroom apartment from €700".

He emphasized that prices always take into account how new the apartment building is and what it offers to students, pointing out that some apartments include water and internet charges in the rent.

More generally, he noted that the image of the real estate market is stabilized in all cities.

However, he expressed the assessment that "when the war in Israel ends and the Israelis return, demand and prices will pick up."

Sluggish demand from students in Paphos

The loss of Russians and Israelis who returned to their country due to the war put a brake on the upward trend of rents, broker Giorgos Petrou told StockWatch.

"The real estate market in Paphos has started to show a fatigue because the demand has decreased, but their owners prefer not to rent, expecting that the situation will turn in their favor again," he said.

He also described the demand for student residences as subdued, pointing out that both Neapolis University and TEPAK have their own student residences.

The prices in the new apartments in Paphos are around €2,000 per square meter, depending on the area, he noted.

Source: stockwatch.com.cy

Photo: stockwatch.com.cy