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Cypriot Real Estate Market Forecast for 2021

Posted by avivit on March 3, 2021
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As the year starts the experts in every field provide newsletters with new analysis or forecasts.
Evgenios Evgeniou, the CEO of PwC Cyprus, believes that during 2021 “Cyprus can transform into an ambitious, inventive and more diversified economy with sustainable growth. An economy that is attractive to productive investments”.

Panos Danos, the CEO of DANOS Group, made a comment on the following year in the real estate market.

As a substantial share of property investors are promising 2021 might be the year to make a positive change to the wealth of Cyprus, meaning there is expected an early pullback from the troubles in the economy associated with the pandemic outburst.

Investment funds that use leveraged funds and employ more aggressive, often riskier strategies than other investors predict that many unwanted sectors by 2020 will be new areas of focus in the coming years.

According to expert agents and developers listed on Goruhomes, 2021 might be a year for the market to prosper and offer new investment opportunities due to an explosion in deferred travel demand, leading to the phase of “growth” that will accelerate into 2022.

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During the last year, overall prices of real estate in Cyprus along with the number of sales contracts have declined, mainly due to the effects of the coronavirus, which gave rise to the closure of interstate borders and travel restrictions around the world.

Moreover, since November 2020, the authorities have decided to end the Cyprus Investment Program, creating the possibility of precariousness and causing some doubts about the need to invest in Cyprus real estate has increased slightly, putting extreme pressure on the luxury properties that have been designed for the above investment program.

Despite any pessimistic prognosis that some properties may remain unsold and that developments for which permits have been obtained will not be implemented, there are projects that increase the depth and scale of the Cypriot market.

Possible Scenarios

There are hundreds of real estate agents operating in Cyprus, from Paphos to Limassol, closing the list with the ones in the capital city of Nicosia.

As far as the demand for the information is as high as it has never been, there are millions of possibilities permanent accommodations. Thus, it is essential to obtain knowledge about the housing market. We are here to help you out with all the problems that might arise. Read our new expert material on housing in Cyprus.

As it always has been the market of housing and rental is still the most flourishing economy sphere of Cyprus, and, in spite of the pandemic outburst taking its place, it still increased its contribution to GVA by approximately 4–17% during this ending year, according to the last PwC report “Cyprus Real Estate Market 2020.”

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The data attached to the report exemplified a shift from reliance on foreign buyers to greater engagement of the domestic market.

The total value of transactions as had been expected went down during the first half of 2020, to €1.2 billion, which was 55% less comparing to the numbers of the same period in 2019.

Evgenios Evgeniou, PwC Cyprus CEO, outlined that the circumstances have made it a top priority to develop a much-needed strategy in the sphere of the market and participants to set their new goals and plans. He ended up saying that abandon now is not a feasible option.

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Elaborating on the main topic of the report, Panos Danos, CEO of Danos, a real estate agency based in Nicosia assumed: “With construction now also at a standstill, there are plenty of projects that are not finished. The prominent marina, casinos, and Larnaca port projects will all suffer in the short-medium term”.

It is believed by Danos that this year and the following one are going to be quite complex years, so the authorities will have to become involved in and reconsider the set of investors so as to draw the interest back to the Cyprus real estate market.

The chairman of the Cyprus Property Owners Association, George Mouskides reviewing the year, summed up that the authorities ought to seek a way to grant citizenship to newcomers on easier terms. As far as he concerns, now the government should find a way to bring in third-party experts to analyze the program so that they can recoup the investors’ trust.

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