The situation with coronavirus and, as a result, the economic instability have greatly affected the foreign Real Estate market. In many countries, the residential and commercial property has already fallen by 30%.
And Cyprus is not an exception in this situation. According to experts opinion, the Cyprus market also affected by the Coronavirus. And, unfortunately, it is only the beginning.
The "Key players” seriously fear that it will be difficult for them to return into the same position as before.
First of all, the the security measures that was accepted in Cyprus hit the construction schedule very strongly. Secondly, the investors prefer to minimise real estate transactions in uncertainty times.
In May 2019 the Real Estate Market of Cyprus already lost several positions because of the terms of the Citizenship for Investment program. And now it’s completely “ frozen" for an indefinite time. Of the 742 properties that were sold in January 2020, only 30% were acquired by third-country nationals. And now their buying activity has decreased by 20%.
And if we add also a huge amount of new buildings, and thousands of objects that were withdrawn for debts by banks, that we can expect the same drop in the price of real estate for sale as in Italy or France.
The situation also is aggravated by the fact that foreign buyers cannot come to Cyprus to look at Real Estate object, and developers cannot travel abroad to present their projects at international exhibitions. As a result, the coronavirus epidemic will certainly harm the sale of exclusive housing in Cyprus.
And for rent - if the epidemic continues to progressive, that thousands of rental housing units will remain empty due to cancellation of reservations. In this case it can be positive impact on long-term leases. Owners will be forced to rent property for a long time, which will reduce the cost of rent.
How do you think, what is waiting for the Cyprus property market in the near future?
