One of the main consequences of the coronavirus pandemic around the world has been a change in the preferences of residential property buyers.
Today, many investors prefer apartments, which are the most profitable investment of money.
For example, about 20% of all buyers of real estate in the United States are large companies and wealthy people who purchase housing for resale or lease to third parties. This trend has been particularly visible over the past two years.
Interestingly, in the United States, out of 140 million housing units, about 80 million are apartments. Of these, about 15 million are leased, with 300 thousand in the hands of institutional investors. The rest are mostly owned by private individuals.
Most of the island's residents currently do not want to buy large houses with a garden and pool.
They want a smaller home that is close to all amenities and does not require high maintenance costs.
In addition, the number of people who can afford expensive property in Cyprus has dropped significantly compared to thirty years ago. By the way, some large houses in Cyprus have not been sold for years, and apartments are sold up quickly, since they are much more liquid.
It is worth noting that the population and households in the country have increased significantly over the past thirty years (from 185,459 households in 1992 to 303,242 in 2011), which has led to numerous changes in the residential real estate market.
It is noteworthy that the layout and area of developed residential projects are gradually changing.
If earlier developers offered spacious apartments of a large area, then gradually they are becoming smaller and smaller. The apartments being built now are about 10% smaller than those that were built 5 years ago. The decrease in the area of housing is associated with the growing popularity of small projects that do not require additional costs.
In addition, trends in the Cyprus property market are also changing in line with demographic data. The government and the private sector must take the necessary strategic steps to take them into account, so as not to find themselves in a position where they will be forced to make haste decisions after the fact.
If you are thinking about investing in real estate in Cyprus, but you have questions, please contact DOM Real Estate specialists. You will be advised on the legal aspects of the transaction, offered the most profitable options and provided additional services.