21.07.2022
Cyprus real estate is facing new data and new trends as the pandemic and then the war in Ukraine with its aftermath brought significant changes to the daily lives of citizens as well as their habits.
The new order of things has prompted households to rethink their goals and priorities, as well as to make decisions that were not previously in their plans, such as finding a new property that meets higher criteria, or even permanently settling in another country.
A recent report analyzes Cypriot property and captures the significant changes it has undergone. The data and results of the report refer to the first half of 2022.
According to the report, there is currently an increased demand for more affordable rentals. At the same time, Cyprus, with all the comparative advantages that characterize it, as well as opportunities, has now become an attractive destination for people from abroad who are looking for new experiences.
Technology is now an important factor in the property selection process and potential buyers are looking for virtual 2D/3D photos and videos as well as e-tours. Virtual tours that buyers can share with friends and family, as well as zoom meetings, have become a new trend in the real estate market.
In addition, as noted in the Danos report, by 2025 Millennials (Generation Y) and Generation Z will make up 70% of real estate market customers.
At the same time, the provision of services and important amenities is now considered important in the real estate market. In particular, potential buyers tend to take a holistic approach to finding a home. Savvy buyers/investors have become much more discriminating in their searches and pay more attention to detail, preferring properties that are environmentally friendly, animal friendly and more affordable for families.
As for high-end buyers, they are much more demanding and are looking for experienced property brands that will offer them authenticity, trust, as well as personalized services, an online search experience, and highly professional service.
How the market moved in the first months of 2022
As can be seen from the Danos report, property in Cyprus moved in a positive direction, but with a slight increase in the first five months of 2022.
In particular, 27,000 transactions related to purchase and sale, donations, mortgages and purchase and sale documents were carried out.
Real estate sales in April 2022 were 938, up from 832 in April 2021, an increase of 13%, according to the Land Registry.
At the same time, real estate sales in the first four months of the year increased by 40%, amounting to 3,947 from 2,817 in the corresponding period of 2021.
Limassol also recorded a 13% increase, with sales reaching 329 in April 2022, up from 292 in April 2021. Between January and April 2022, property sales in Limassol reached 1,348 from 851 in the same period in 2021, an increase of 58%.
Nicosia suffered a marginal loss of 3%: 222 sales in April this year compared to 229 last year in April. In the first four months of the year, sales in the capital rose marginally by 2% (to 895 in 2022 from 875 in 2021).
Paphos has 184 property sales in April 2022, up from 130 in April 2021, representing a 42% increase. For the January-April 2022 quarter, sales increased by 80% to 837 (up from 465 in the same period last year).
A 16% increase was recorded in property sales in the province of Larnaca, which in April this year amounted to 157 compared to 135 in April last year.
Housing market
Prices for houses and apartments slightly accelerated growth in the first half of 2022.
However, as the Danos report points out, the increase in house prices is mainly due to the apartment market and to a lesser extent due to the housing market.
In particular, in the previous quarter, housing prices increased by 3.9%, and for apartments – by 6.3%.
The real estate market continued to be driven primarily by domestic demand.
Transactions mainly concern residences in the amount of 100,000 to 300,000 euros.
The report notes that the rise in prices is largely due to rising construction costs. Since most of the materials in Cyprus are imported from abroad, Danos predicts that at some point in the future this will negatively affect demand.
Office rooms
In 2022, prices for the sale and rental of office space rose after a significant increase was recorded.
The upward trend in prices was the result of a rebalancing caused, on the one hand, by the wave of supply of modern office space, which at the end of the first half of the year exceeded previous levels . in the first – and on the other hand there is an increased demand.
In particular, as shown in the Danos report, compared to other real estate categories, the cost of office premises has been constantly rising, mainly due to increased demand, which inevitably pushed prices up.
The shops
The retail industry has faced major challenges over the past two and a half years as the pandemic has brought significant changes such as changing consumer habits and the rapid growth of e-commerce.
In general, quarantine, movement restrictions, flight bans have negatively affected retail, and today it is in the process of stabilizing and adapting to new standards, many activities are being transferred to electronic form.
As a consequence of the above, in 2021, many retailers were unable to cope and sustain their operations as retailers struggled to meet their rental obligations.
