Deloitte has just released its overview report on the Cyprus real estate market. It reflects the mood in the market.
The report includes the results of the Cyprus Real Estate Pulse survey conducted in December 2020. The topic of the economic situation in Cyprus and the real estate sector as a whole was touched upon. The report also reflects the impact of the pandemic and the recent closure of the Cyprus Investment Programme.
The main conclusions on market efficiency are as follows:
- In 2020, the number of sales contracts dropped sharply, amounting to only 7968. This is 23% less than noted in 2019 (10,366).
- After the abrupt end of the CIP in November 2020, demand for luxury properties is expected to fall. This is especially true for the regions of Limassol and Paphos.
- The lockdown in March 2020 contributed to a significant decrease in sales transactions. So, in the spring of 2020, the total number of registered documents of ownership decreased significantly.
Deloitte keeps abreast
The short-term outlook for residential real estate prices suggests that they will remain stable. While the cost of office and retail space will be negatively affected by the pandemic.
Market participants agree that additional solutions are needed to accelerate the recovery of the real estate market. Among them, various forms of tax breaks and benefits are especially relevant.
Apartments have been less affected by the lockdowns and are likely to recover faster than other types of property.
Investing in real estate will still remain relevant for people.And it is worth noting that apartments in Cyprus are the most popular option for buying, demonstrating constant demand.
Their study also involved professionals who gave their opinion. The views of the main parties in the field of real estate transactions are taken into account. Among them are contractors, real estate agents, appraisers and property developers throughout Cyprus.
The respondents believe that the key element influencing the performance of the Cyprus property market over the next 12 months is “access to finance”. It is followed by “market confidence”, “travel restrictions” and “foreign investment”.