According to the CEO of the Cyfield group of companies, George Crisochos, in 2022 there will be an increase in prices in the real estate sector due to the increase in the cost of building materials.
In an interview with In Business 2022 Forecasting-Towards Sustainable Growth, Mr. Chrysochos mentioned the most important trends and developments that will shape the future of the real estate sector, referring to his 2022 forecasts.
“Real estate prices are mainly driven by the cost of transportation, as a result of which any development in the shipping sector directly affects them,” said George Chrysochos.
Below is an interview with the CEO of Cyfield Group:
How do you think the Cyprus economy and property market will develop in 2022?
We believe that in 2022, with the exit from the pandemic, the Cypriot economy will grow rapidly. Despite the difficulties caused by covid-19 and its impact on tourism, inflation, rising prices and the energy crisis, international companies are optimistic about the future and stability of Cyprus.
This justifies the massive investment of foreign companies headquartered in Cyprus. Cyprus has a large influx of capital as well as a high level of staff from many countries such as Israel, Lebanon, Russia and Europe. The instability that neighboring countries continue to present further benefits Cyprus.
It will also have a very positive effect on tourism. With encouraging new measures announced by the finance minister, we expect increased investment in various sectors such as healthcare, education and services.Cyprus banks are resilient enough to be able to finance potential growth.
What are your projections for the sector you work in in 2022? How do you assess how it will move in a positive, negative direction or how in 2021?
As for the real estate sector, there will be a rise in prices due to an increase in the cost of building materials. However, we do not expect demand to slow down as banks continue to finance potential buyers at low interest rates, and as household needs increase with the arrival of foreign labor. Moreover, foreign companies coming to Cyprus to set up their own business increase the demand for offices and other commercial properties.
As for the execution of public procurement, the state announces a number of important infrastructure projects. We expect that the already heavy workload on contractors will increase. With the completion of many of the private projects started in previous years, contractors will move from construction projects to technical projects.
The widely discussed energy issue will continue to occupy the economy and society intensively in 2022. The reason is the rapid rise in world prices for gas and oil, which is partly due to the premature and unplanned carbonization of energy production.
Unfortunately, rising energy costs slow down economic growth and place a burden on households.
What are the most important trends and developments we should expect in 2022 regarding your industry?
The real estate sector is directly dependent on rising prices for building materials, so in 2022 it will be very interesting to see where these prices end up and where they stabilize. They are mainly formed by the cost of transportation, as a result of which any development in the shipping sector affects property prices. Also prices change depending on the production of many factories affected by covid-19.
Another important factor is the interest rate policy of the European Central Bank, which affects the cost of lending and therefore the real estate market.
In 2022, as we said, many infrastructure projects will be announced, so we are looking forward to the final budget. With regard to the global energy crisis, the European Union’s decisions on the Green New Deal and the carbonization of Epirus are key.
For Cyprus, the progress of the natural gas infrastructure project is very important and is expected to significantly reduce the cost of electricity generation.
What can we expect from your company in 2022? What are your goals?
We continue to develop the first traditional private power plant in Cyprus, we have invested heavily in enriching the group’s machinery and human resources to be able to adequately handle the upcoming major infrastructure projects. We have already won several important competitions that raise the technical level of the company to the international level. With this technical expertise, we will strengthen our presence at the regional level with projects in neighboring countries.
In the field of real estate, we will continue to offer comprehensive solutions to meet mainly the internal needs of both interested buyers and businesses.
Finally, after 25 years in Greece, our company is looking to further expand its projects, mainly in Athens.