Usually, one powerful factor is enough to make the real estate market feel the changes. This year, the such factor is coronavirus for many countries.
The first, was China. Due to the coronavirusoutbreak, the residential real estate in China has ceased to rise rapidly. Moreover, there has been a sharp drop in housing sales.
However, as soon as the country managed to take control of the situation with the COVID-19 epidemic that swept China in January – February 2020, the state of the housing market also began to improve rapidly.
According to analytics, today the Chinese market has overcome the lowest point of decline. Then faster the number of new infected people decreases in China, the more real estate sales grow.
In 30 major Chinese cities for the first 17 days of March, more that 39 thousand real estate purchase and sales transactions were complete. Compared with 4.58 thousand transactions for the same period in February.
For example, in Shanghai (one the largest financial center in China) were completed about 1.37thousand transactions during the whole week of January. When was recorded the peak of growth of infected COVID-19 in China, only 62 apartments were bought in the city.
The situation with the sale of real estate in Cyprus is still unclear. However, we should not exclude the scenario of China.
As the peak of the incidence rate in the island now, so purchasing activity has sharply decreased.
Remind you, that in March 2020 the number of real estate purchase and sales transactions decreased by exactly one third compared to the same period in 2019.
Most of all, the situation with coronavirus has affected luxury real estate developers, who are targeting foreign investors. Demand on new buildings in Cyprus has fallen. But this can be easy explained by the lack of investors, as the island is closed and they simply cannot fly to Cyprus.
No doubt, we should not expect a sharp surge in sales and an increase in property prices in the coming month in Cyprus.
The main task for the Cyprus realtors is to maintain demand or at least collect deferred demand.
However, as soon as the coronavirus epidemic subsides, the government weaken self-isolation measures and open borders. Then the Cyprus real estate market will go up, as in China.
Recovery period of sales in Cyprus is expected in the third quarter of this year. Everything will depend on how quickly the quarantine on the island is gone.
Source: Kommersant