The Cypriot real estate market, as well as all national real estate markets, seems to be at a standstill at the moment, but unlike many others, the timing seems to be different for Cyprus. While for most of the analyses we have carried out, it has proved complex to identify a definite time frame, the same cannot be said for the Cypriot real estate market.
The date that will mark the end of this criticality, according to the experts, is 2021. Just one year after the beginning of the Coronavirus pandemic that is bringing the whole world to its knees. But let’s try to understand more about it, so that we can make a careful and detailed analysis of it.
In recent years, contrary to what one might imagine, Cyprus has proved to be a truly dynamic reality. To underline this, the growing pipeline of luxury residences, which has increased the supply side of the real estate market. Very high values and foreign portfolios have stunned the competition. Most buyers, however, were not domestic. The main stakeholders who played an active role in the Cypriot real estate market were Russian and Chinese citizens. Despite everything, however, demand has gradually decreased over the past year.
However, the severe restrictions adopted as a result of Covid-19 have weakened the market. The blockade has generated such a major crisis that many previously agreed real estate transactions have been postponed or hibernated.
Similarly to what happened in New York, the construction sector seems to have come to a standstill here too. It is a sector that is currently at a standstill, with an exorbitant number of unfinished projects.
But which sector will be most affected? Without a doubt, the tourism sector. Both in the short term and in the long term.
Furthermore, it will be very complex to be able to give a proper assessment of the value of the property under consideration. Given the very complicated situation and future uncertainty.
Not exempt from this crisis, even the commercial sector. Especially the retail sector. The stoppage policy has blocked, in the best case scenario, the expansion plans of retailers. This has been added to a rampant crisis in the residential sector. Always for the usual reason. It is foreign investors who are stirring up the market. Therefore, if the political, health and economic situation does not guarantee a certain stability, the investor becomes reluctant towards the nation itself. And this translates into non-purchasing behavior.
But not all evil comes to harm. Unlike many other nations, the figures speak for themselves.
The critical situation will continue, according to economists, until 2021. A difficult period but one that will certainly allow the economy to recover in the best possible way.
We hope that the Cypriot real estate market will recover in the meantime, stay up to date on our portal!
2005-2019 REALIGRO REAL ESTATE LTD. All Rights Reserved - VAT Nr: 893969932
