LionGlobal reports that the pandemic and the cancellation of the Cypriot investment program may have caused a crack in the Cypriot real estate market and acute concern of the business community. But rereading the data shows that the picture is not so blurry.
Focusing on the needs of other groups, the real estate sector has a lot to offer. Local demand will drive the property market as it has helped maintain its performance over the past year.
A recent survey by LionGlobal of first-time homebuyers showed encouraging results. Millennials are expected to become the dominant force in the real estate market in the coming years, according to the survey results.
Until now, it was believed that apartments are the type of property most preferred by young people. But it seems that such an impression could be created by the trends that have dominated abroad in recent years.
Cypriot millennials seem to think differently, judging by the LionGlobal study Millennials in the First Home Buy Market, which surveyed men and women aged 25-39.
They want… the American Dream
From the answers of the participants, it becomes clear that the Cypriot millennials think differently, as they have the American dream in their heads, that is, a large and spacious house with a garden.
When asked about the ideal type of housing, 55% of the participants answered that they would prefer a house. Many of them stated that the minimum indoor area they would like to live in is 166 sq.m.Similarly, 50% of respondents believe that a garden or even a rooftop garden can influence their decision to buy a home, while two-bedroom apartments were the most popular choice among those who indicated they would prefer an apartment.
Regarding the ideal place to buy a house, 76% of participants named easy access to goods and services, as well as a place of work among the most important characteristics.
Better to buy a house than rent
Another interesting finding is that, contrary to popular belief, Cypriot millennials prefer to buy a home. Although it was assumed that this age group is content with renting real estate.
In particular, 34% of participants reported that they would rather buy than rent, as it is seen as a more affordable option. In addition, 67% of participants believe that buying a house at an early stage of construction is the best option. Maybe they think that they can profit from an attractive purchase price, or the fact is that in such an option some internal changes can be made.
According to the survey, millennials are ready to buy a house, but at a much lower price than existing ones, especially in areas close to the center of Nicosia and Limassol.
In particular, they are tempted to buy a house if it sells for around 270,000 euros. Accordingly, they are willing to pay 125,000 euros for a one-bedroom apartment, 180,000 euros for a two-bedroom apartment, and up to 225,000 euros for a three-bedroom apartment.Housing prices and down payment create hurdles
When trying to buy a home, millennials face some hurdles, such as rising property prices and finding the down payment required by banks to get a loan.
According to a LionGlobal survey, 77% of participating millennials who are in the process of buying a home have a down payment of up to €45,000. At the same time, a large percentage of participants surveyed are not aware of either the terms of the loan offered by banks or the interest rate subsidy scheme implemented by the state. At the same time, 59% of participants wishing to buy a home consider high real estate prices to be their main obstacle.
However, 75% of those surveyed believe that buying a house is a good investment in the current environment.