Drop prices for luxury real estate in Cyprus

Цены на элитную недвижимость Кипра могут обрушиться
19 November 2020 Liza Medvetskaya

Due to the coronavirus pandemic and the investment program's suspension, luxury real estate in Cyprus may be subject to a sharp drop in prices.

Besides, do not forget about the damage to the island's reputation caused by the Al Jazeera videos. A bad taste left by Al Jazeera videos pushed the retreat by foreign buyers further and may send prices spiraling to 2013 era levels.

The number of foreign investors who have contributed to the growth in demand for premium homes and apartments in the island's skyscrapers, especially in Limassol and Paphos, decreases every day.

According to DANOS International Property Consultants and Valuers, the volume of transactions with foreign buyers will sharply decrease in 2021.

The main reasons are restrictions on the export of cash from foreign countries, the entry into force of anti-corruption laws, market saturation, rising real estate prices, lack of incentive to obtain citizenship, and concerns about the EU economy's stability market and political situation.

The Limassol real estate market should slow significantly as sale volumes across the town are expected to fall by at least 25%.

The average price for a high-rise tower apartment is expected to fall in the last quarter of this year and continue falling in 2021, as well.

After all, if you look around, then an ordinary average resident of Limassol is unlikely to afford to buy housing in a 15-28-storey high-rise, the cost of m2 in which starts from €6 000.

A similar scenario awaits Paphos and Larnaca. Prices in these cities will also drop significantly for many reasons. However, the main one will be a drop in the demand for clients from abroad.

Цены на элитную недвижимость Кипра могут обрушиться

The Cyprus real estate business driver has mainly been Russia and China, with 35% of real estate business done in Limassol, historically coming from foreign investment.Due to the demand from foreigners, housing prices in Cyprus have been kept at a very high level for a long time. However, now that the Cyprus citizenship program has been suspended, there is no longer a compelling reason for foreign investors to buy a property on the island.

Due to the coronavirus pandemic, people can no longer expect their business to generate a steady income. Due to economic uncertainty, Cypriots are forced to sell their properties to save money or pay off accumulated bank debts.

Also, the occupation and provocations by Turkey play an essential role.

In the current financial and political climate, Cyprus is not considered as stable as it once was.

"Unfortunately, it is a fact that many luxury real estate objects will be empty. At least until normal market conditions are established, a vaccine against COVID-19 will not be available and Turkish provocations will not be resolved peacefully," said DANOS International Property Consultants and Valuers.
Source: financialmirror.com
Photos: cyprino.ru
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