09.12.2023
Recent developments in the Cyprus property market have revealed a significant shift in buyer interest towards the occupied territories, with pricing cited as a key factor rather than the ongoing conflict in Israel.
President of the Council of Real Estate Agents of Cyprus Marinos Kineyiru explained that the interest of foreign buyers has had a noticeable impact on the Cypriot property market over the past few years.
In this context, he noted that after the Covid-19 pandemic, interest from foreign buyers played a significant role in reviving the market after a period of deep crisis.
“Interest from foreign buyers has supported the Cypriot property market in recent years. It is no exaggeration to say that in the wake of the Covid-19 pandemic, the interest of foreign buyers has given a significant boost to the market and contributed significantly to its recovery,” he added.
Analyzing comparative property sales data on a quarterly basis provided by the Estate Agents Council, Kineiro noted that property sales in Cyprus had a consistent upward trend during the nine-month period in 2023.
However, he highlighted the significant shift that has occurred recently, indicating signs of stagnation in all cities and areas of the territories controlled by the Republic of Cyprus.
Despite widespread speculation linking the market stagnation to the conflict in neighboring Israel, Kineiro argues that while the war affected Israeli and Lebanese interests, it was not the main cause.
He stressed that exorbitant property prices have dampened the interest of both domestic and foreign buyers alike.
“Many, both experts and laymen, argue that the stagnation in the market is due to the war that broke out in neighboring Israel, as it has slowed down the interest of Israelis and even Lebanese buyers. Our experience in the Cypriot property market leads us to the conclusion that the war in Israel is not the main reason for the stagnation, but rather a minor excuse.”
Kineyiro said “the reality is that excessively high property sale prices have dampened the interest of both domestic and foreign buyers.” He argued that Israeli and Lebanese buyers are now investing in real estate in the occupied territories, even amid the ongoing conflict.
This shift was evident in the Turkish Cypriot press and social media, where tailored advertising campaigns were observed targeting the Israeli and Lebanese markets.
“Besides the Russians, who have flooded into occupied Cyprus since the outbreak of the war in Ukraine and associated sanctions, both Israelis and Lebanese prefer to buy houses in Turkish-controlled areas of our homeland,” he said.
In response to this shift in the market , Quineiro said there are two schools of thought on this phenomenon: one of willful ignorance and the other of pragmatism.
“We, those who live and make a living from the real estate sector in the free areas of the Republic of Cyprus, have two choices,” he said, noting that the first option is “to continue to cover up the problem and look for excuses for reducing demand. The second option is to admit that we have gone too far with prices to the point that we are alienating foreign buyers,” he added.
Concluding his observations, Quineiro emphasized the government’s role in curbing this trend, calling on property owners to confront the issue rather than shy away from reality to avoid potential market impacts.
