14.04.2024
According to a Deloitte Cyprus survey, the Cyprus property market will change during 2024, with apartments remaining the most attractive investment opportunity over the next 12-18 months. However, luxury apartments in high-rise buildings are expected to lose some of their appeal.
The online survey was conducted in early 2024 among more than 100 real estate industry professionals and affiliates, such as real estate investment firms and professional services executives, who were asked to share their views on real estate issues, highlight their investment priorities and expected results of changes in the real estate market in 2024.
The Cyprus property market has not changed
Survey respondents generally indicated that they do not expect fundamental changes in the real estate industry in 2024.
The majority of respondents believe that the cost and availability of financing will not change, although about 40% expect an increase in the level of affordability of both residential and commercial real estate. At the same time, 55% predict that there will be no significant changes in the real estate rental business.
Respondents were divided on expected activity in real estate transactions. Specifically, six in ten respondents report that they do not expect any change in total domestic investment in 2024, while views on foreign capital inflows are divided: 38% expect an increase, 36% expect a decrease, and 26% expect a decrease. don’t expect any changes.
On the other hand, most respondents believe that housing demand will continue to rise throughout 2024, with a strong focus on resales and renovations.
About 50% of respondents expect sales and rental prices in 2024 to remain at the same levels as in 2023. They predict a fall in the cost of buying and renting luxury apartments.
The most important change expected by survey participants concerns high-rise luxury projects. Specifically, 56% and 44% of respondents believe that sales and rental prices will decrease, respectively, during 2024. On the other hand, only 12% and 10% respectively believe that sales and rental prices will increase.
In addition, 40% of respondents believe that residential apartment sales prices will increase in 2024, while rental prices are likely to remain unchanged or decrease. The reason for these conflicting forecasts has been reported to be due to rising financing costs and inflation coupled with increasing affordability and decreasing disposable income.
When asked which property types presented the most attractive investment opportunities over the next 12 to 18 months, residential apartments came out on top with 26%, while student accommodation came out on top with 19%. Offices in the city center (12%) and residential real estate for rent (12%) will be slightly less attractive.
Respondents also consider commercial real estate, including suburban (suburban), retail properties and shopping centers, to be the least attractive of all types of real estate.
