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Investing in real estate is still the most popular type of investment in Cyprus

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Investing in real estate is still the most popular type of investment in Cyprus

The measures and restrictions imposed during the “lockdown” periods in 2020, as well as the unexpected interruption of the “Cyprus Investment Program” with effect from November 1, 2020, seem to have negatively affected the activity of the sector with reduced transactions. , reduced construction activity and falling prices mainly in luxury real estate in coastal areas, according to a Deloitte study for the real estate sector in Cyprus.

Announcement states that according to the study, the total number of sales documents for 2020 was reduced by 23%, reaching 7,968 compared to 10,366 in 2019. The number of sales for 2020 was reduced by 18.5%, reaching 14,663 properties compared to almost 18,000 in 2019, while their total value reached € 2.74 billion, recording a decrease of 23% compared to 2019.

In Cyprus, as reported, selling prices for all types of real estate decreased, with the exception of apartments which seem to have remained almost unaffected by the annual price change for the 2nd quarter of 2020. Rental prices on an annual basis for 2nd quarter of 2020, have increased for most real estate categories, with the exception of commercial stores for which the fall in rental prices seems to continue.

Luxury real estate and large developments seem to have been hit hardest, as building permits for large projects in January-November 2020 rose to 595 compared to 5,397 for 2019, while it remains unknown how many of these permits will be implemented in the near future, according to the study.

Apartments seem to be the most resilient type of property to the pressures exerted on the industry, mainly due to the effects of the pandemic and the termination of the Cyprus Investment Program and, among other findings, it seems that real estate investment is still the most popular type of investment. in Cyprus.

The study concerns one of the most important periods that the Cypriot market has gone through, as well as the global economy, as the impact of the COVID-19 pandemic is predicted to continue at least until the end of 2021 and includes information and analysis on the development of the Cypriot real estate market, an overview of the Cypriot economy, as well as the poll conducted in December 2020 regarding the views of industry professionals from all over Cyprus for the new year, according to the announcement.

The Head of the Real Estate Sector and Partner in the Financial Advisory Department of Deloitte in Cyprus, George Martidis, said in a statement that “Recent developments in the real estate sector, mainly due to the pandemic and the termination of the Cyprus Investment Program, bring us against important challenges such as supporting and empowering local businesses, as well as finding and offering alternative forms of investment to foreign and local entrepreneurs “.

“The stabilization but also the improvement in the climate of the Real Estate Sector, can be achieved by continuing the efforts in the creation of development projects, such as these Technology Parks and other projects in the field of Technology and Innovation, in the Marinas, in the Casino-Resort in Limassol, and other major infrastructure projects. At the same time, the strengthening and utilization of natural and other resources, in sectors such as Energy, Tourism and Health, are expected to contribute positively to all other sectors of our country's economy, and consequently to the real estate sector. he said concluding.

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Source: politis.com.cy

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