Sales of luxury real estate dropped sharply in Cyprus

На Кипре резко сократились продажи элитной недвижимости
21 November 2020 Liza Medvetskaya
2824

The most intense impact was received by the purchase of high-level residential real estate in the first half of 2020. With sales, during and after the first lockdown, being measured on the fingers, at a time when the abolition of the Cyprus Investment Plan creates a rift in a once highly profitable part of the Cypriot real estate market.

According to the PwC analysis, as shown by the recent Cyprus Real Estate Market, in the first half of the year, transactions in homes worth more than €1 500 000 recorded a vertical drop of 78%, reaching 51compared to 234 in the corresponding half of the year of 2019.

Exactly the same huge drop was recorded in the value of transactions in the first half of 2020, which decreased to € 117 000 000 compared to € 530 000 000 in the first half of 2019.

According to the PwC analysis, as shown by the recent Cyprus Real Estate Market, in the first half of the year, transactions in homes worth more than €1 500 000 recorded a vertical drop of 78%, reaching 51 compared to 234 in the corresponding half of the year of 2019.

Sales in the middle of a lockdown

PwC's analysis shows that in total, after the implementation of the lockdown in mid-March, only 17 housing units were sold more than €1 500 000 during three months (April - June 2020), with a total value of € 44 000 000.

Specifically, while in March 11 houses were sold for a total of € 25 000 000, in April four residential properties were sold for €11 000 000, in May for six houses €18 000 000 and in June for seven houses €15 000 000.

Starring Limassol and Paphos

It is worth mentioning that home sales over €1 500 000 represented only 10% of the total value of real estate transactions in Cyprus in the first half of 2020, while the corresponding half of 2019 accounted for 20%.

Of the 51 transactions recorded in the first half, about half, i.e., 25 or 49%, concerned Limassol, followed by Paphos with 21 or 41%.

8% of the transactions took place in Larnaca, while 2% in free Famagusta.

Moreover, of the €117 000 000 in high-end transactions, 53% were related to Limassol and 40% to Paphos.


They prefer villas

During the first half of 2020, homes appeared to be the preferred type of housing, accounting for 63% of total high-end transactions throughout Cyprus compared to 37% for apartment transactions.

In the corresponding period of 2019, wealthy buyers preferred luxury apartments by 53% over luxury homes by 47%.

€2 000 000 - €3 000 000 half transactions

Most of the transactions in the high-end housing category in the first half of 2020 ranged between €2 000 000 and €3 000 000, representing 55% of the total transactions in this category.

Trading in all price categories decreased in the first half of 2020, compared to the same period last year.

It is emphasized that only one house was sold with a value exceeding €5 000 000 in the first half of the year.

More specifically, in the first half of 2020 were recorded 28 transactions in residential real estate worth €2 000 000 to €3 000 000, 17 transactions in residential real estate € 1.500 000 to €2 000 000, and five transactions in residential real estate €3 000 000 to €5 000 000.

На Кипре резко сократились продажи элитной недвижимости

Need to restart after the end of the investment program.

Given that the high end residential real estate market is almost directly linked to the buyers arising from the Cyprus Investment Plan, the program's suspension creates uncertainty about the future of this segment of the real estate market.

 Simultaneously, as noted in the PwC report, the need to redefine and transform the developments intended for this market segment intensifies.

Source: inbusinessnews.reporter.com.cy
Photos: pixabay.com
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