Deloitte has just released its Cyprus Real Estate Market Report, which provides an overview and sentiment of the real estate market in Cyprus.
The report provides insights on the economic overview of Cyprus and that of the Real Estate sector, as well as the results of the Cyprus Real Estate Pulse survey conducted in December 2020. The report also captures the impact of the pandemic outbreak and the recent termination of Cyprus Investment Programme.
Key findings concerning the market performance include:
- During 2020, the total contracts of sales were considerably lower at 7,968 compared to 10,366 in 2019, a reduction of 23%.
- The unexpected termination of the Cyprus Investment Program as of November 2020 is expected to negatively affect the demand for high-end residential properties, especially in the regions of Limassol and Paphos.
- Total number of title deeds transferred in 2020 in the months of March, April and May have been affected the most, exhibiting extremely reduced performance as a result of the March 2020 lockdown.
And from its Pulse survey:
- Apartment prices are expected to remain unchanged in the short term. On the contrary, office and retail space prices are anticipated to be negatively affected by the pandemic in the short term.
- Market participants believe that the majority of the additional measures towards the faster recovery of the property market should relate to various forms of tax reliefs and incentives.
- Apartments appear to be the least affected by the pandemic and are expected to be the first property type to recover.
- People would still invest in real estate with apartments being the most preferable property type exhibiting a stable demand.
Their pulse survey also reveals the views and opinions of professionals and key stakeholders in the property market including valuers, contractors, real estate agents and property developers from all over Cyprus.
According to those surveyed, the principal factors affecting the Cyprus property market’s performance over the next 12 months are “access to financing” followed very closely by “market confidence”, “travel restrictions” and “foreign investment”.