13.01.2023
Executive Director of the D. Zavos group of companies Michalis D. Zavos expressed his assessment that the expected reorganizations will not have a negative impact on Cypriot real estate.
In an interview, Mr. Zavos points out that the sector is highly dependent on the external market and mainly on investors from countries not affected by the economic crisis, such as, for example, the Middle East, Israel and even Russia.
“Despite the increase in construction costs, the construction sector will continue to have positive dynamics in 2023. It is expected that the demand for real estate from foreigners, mainly buyers, will continue at the same pace as in 2022,” he emphasizes.
Commenting on the inflationary pressure faced by the sector, Mr. Zavos says that Cyprus, and Limassol in particular , maintains competitive prices compared to other destinations, leaving room for further increases.
The real estate situation will improve in 2023
What are your predictions for the construction industry in 2023? Do you think 2023 will be good, bad or neutral for her, like 2022?
2023 is expected to be a year of many reshuffles. However, despite all the expected changes, I do not think that the Cyprus property market will suffer, and this is because, firstly, it is a very small and flexible economy, and secondly, it is not completely dependent on the local market, but in largely from foreign.
And when I talk about the overseas market, I mean buyers or investors from countries that are not expected to be affected by the financial crisis, such as the Middle East, Israel and even Russia, which remains a stable market for the Cyprus property market.
Despite rising construction costs, the construction sector will continue to develop in 2023.
Demand for property from mostly foreign buyers is expected to continue as it will in 2022 and this is due to the fact that Cyprus remains a safe destination providing a high quality of life with many benefits.
What are the main challenges you think the industry will face?
What all businesses, including those related to land management and construction, should take seriously is to limit loans and liabilities to banking institutions, as the cost of financing is expected to rise sharply during 2023.
On the other hand, it is buyers who are more in need of real estate investments, as high inflation and low or no deposit rates favor real estate investments. It should be expected that high inflationary trends will negatively affect the value of cash, which, of course, favors the real estate market.
This is important for Cypriots, who keep their savings in cash and do not bring them any income, in contrast to real estate, which today offers an income of up to 8%.
Reserves for further increase
The construction sector is under strong inflationary pressure. Do you think this growth will continue or prices will start to decline?
The construction sector is under strong inflationary pressure, but on the other hand, increased demand and the advantages that real estate offers over other investments are driving growth and demand for real estate, which is pushing the real estate market to move up.
Cyprus still remains stable in terms of property prices compared to many European countries, or if you prefer, compared to many European cities when compared to Limassol .
Compared to countries such as Israel, England, France, Dubai and many other countries in Europe and the Middle East, Cyprus is still considered competitive, with the result that prices have room for further growth.
Group of companies D. Zavos
What can we expect from your company in 2023? What projects will be implemented, and in general, what are your goals?
Our company for 2023 will continue to create and build new innovative projects with the main focus on investors.
After our two successful Zita Housing ” and ” Zita Investment ” we have created another innovative project aimed at investors, Cypriots and foreigners, called “Buy to Rent”. Rising rents, mainly in Limassol , favor this plan as yields can reach up to 8%. In addition, 8% is the capital gain from the increase in the value of the property.
A simple example: the above program includes 2 bedroom apartments in prestigious areas of Limassol with a sale price of 250,000 to 300,000 euros and an annual income of 20,000 euros (1,700 euros per month) and 24,000 euros (2,000 euros per month) respectively.
Our company plans to develop six new projects in 2023:
ZAVOS BEL AIR MAINSIONS in Agios area Athanasios , Limassol .
ZAVOS LA MAISON COURT in Yermasogeia area , Limassol .
ZAVOS PANIOTIS RESIDENCES in Yermasogeia area , Limassol .
ZAVOS ATLANTIS COURT in Sporting Club , Limassol .
AQUA PARK ANNEX (61 apartments) in the tourist area of Yermasogeia , Limassol .
A complex of 100 apartments in the Larnaca area .
We are also continuing to complete four other projects in Limassol and one in Protaras in Famagusta province , most of which will soon be SOLD.
Finally, the flagship of our projects and the pearl of Cyprus, Limassol Del Mar , in which we have very few ready-made apartments, who are looking for their latest and preferred tenants.
