What to expect in the coming years is one of the main questions on the minds of all participants in the Cyprus property market.
Recently, consulting firm Danos and Associates conducted a new study to find out who will be on the list of the island's top home buyers by 2025. They found that 70 per cent will be members of generations Y and Z.
Note that Generation Y or Millennials are people born between 1982 and 1996. They are also known as Igreks, Generation Y, Generation Next, Network Generation, Millennial Generation, Peter Pan Generation and the first digital generation. Millennials are now around 28-43 years old. According to Danos and Associates, their main criteria when choosing a property are: price, location and layout. This is due to the fact that millennials are most likely to buy a property for their own home. Millennials are more likely to make major purchases after the age of 30, preferring to rent, sometimes with friends, in order to travel, study or pursue hobbies.
Members of Generation Z (also known as Zetas, Zoomers, Homelanders, Centenarians, Homebodies, Generation Z, the digital generation) were born between 1996 and 2012. As many of them have already entered the age of solvency, they are of great interest to the local housing market. The needs of the Zoomers are similar to those of the Millennials. But there are some key differences. They can't imagine life without digital technology. They are more involved in the sharing economy (a model where people prefer to rent or share rather than buy). Accessibility is more important to them, as they lead active lifestyles and like to travel, and many members of this generation work remotely. Zoomers choose creative and eco-friendly developments with lots of greenery and memorable interiors. The infrastructure of the residential complex and safe public spaces are important to them.
Danos and Associates also notes in its report that digitalisation is gradually becoming a trend in Cyprus.
The younger generation increasingly prefers digital communication and the majority of purchases are now made remotely. The property market is no exception, with developers and specialised platforms increasingly offering online sales opportunities. This applies both to the process of searching for and selecting a home and to the legal aspects of the transaction.
Interestingly, unlike Millennials, Zoomers are becoming less willing to use the services of agents and brokers as a significant proportion of homes are already available online and the seller can be contacted directly.
Millennials and Zoomers are also becoming "drivers" for the development of new services in the property market. For example, the ability to view a home remotely, which arose as a result of quarantine restrictions during the pandemic, has now become very popular with buyers and renters in this age group. Millennials are the main consumers of technology products in the housing market, especially smart home systems. Millennials' main value is security and comfort, so they are more interested in various video surveillance systems, alarm systems, electronic concierges and protection against fire and leaks. Zoomers value simplicity, convenience and hassle-free living. They pay attention to multimedia and lighting control, temperature and humidity control.