17.10.2023
It is not yet clear how recent events in the Middle East will affect the immediate future of the Cyprus real estate market. While immediate attention naturally falls on the ongoing military operations and humanitarian aspect of the conflict between Israel and Hamas , real estate stakeholders are anticipating how developments could lead to future investment in Cyprus by the Israelis.
These investments could include land, property development, or even business relocation, which could potentially lead to new increases in property purchase and rental prices. However, it is difficult to draw specific conclusions now, real estate agents say.
Panos Danos , CEO of DANOS International Property Consultants & Valuers , suggested that the impact on the domestic real estate market depends on the duration of the crisis.
“A quick decision can lead to more lenient consequences, allowing the transition period to be used in conjunction with the typical market lag. If the situation stabilizes, the consequences may be less serious,” Danos said .
Danos said a possible downturn in the international property market could affect Cyprus. “Cyprus is seen as an attractive investment destination with favorable opportunities and returns compared to more mature European markets,” Danos said .
“Whether property prices and rents will be able to stabilize amid inflationary pressures while awaiting the end of the storm in Israel remains unclear. It is also worth considering whether the influx of Israeli investors and businessmen, who may be looking for opportunities outside of Israel, will play a role in strengthening the Cyprus property and construction sector.”
Pavlos Loizu from Ask Wire claims that there has been no noticeable surge in Israeli interest in Cyprus since the crisis.
“However, the situation is expected to change in the coming weeks, both in terms of rental (1-12 months) and purchase of property (6+ months) in Cyprus,” Loizou said .
He added that historically the most significant interest from Israeli buyers has come from cities such as Limassol , Larnaca and, to a lesser extent, Paphos.
“A possible increase in demand from Israelis could lead to higher property prices, both for rent and for purchase.”
He added that due to the timing of the conflict at the end of the tourist season, many properties that typically have low occupancy rates are expected to be rented out.
“It is too early to draw any definitive conclusions in this dynamic and evolving situation,” Loizou said .
