PwC Publishes Annual Cyprus Real Estate Market Report

Компания PwC опубликовала ежегодный отчёт о рынке недвижимости Кипра
12 April 2021 DOM LiVE
1941

The international consulting company PwC has published the annual report on the Cyprus property market for 2020 (Year in Review 2020).

Despite the problems caused by the coronavirus pandemic and the closure of the passport program, the real estate and construction sector in Cyprus became 17% of total gross value added (GVA) in 2020, according to PwC data.

The construction sector's contribution to GVA output declined slightly (1%) during 2020, which underscores the sustainability of the sector and its importance for the economy as a whole, the report says.

The publication provides an insight into the Cyprus economy and presents key developments in the real estate market with a focus on 2020.

The report notes that Cyprus demonstrated in 2019 robust economic growth for the fifth consecutive year (+ 3.2%). However, already in 2020, after the global outbreak of Covid-19, the real GDP in the country declined. The expected partial recovery in 2021 will largely depend on the success of vaccinations in the country.

Among other things, the report contains information on real estate transactions in 2020, the volume of which has significantly decreased due to the pandemic. The largest decrease occurred in the first half of the year, while in the second there were signs of a partial recovery in market activity.

Компания PwC опубликовала ежегодный отчёт о рынке недвижимости Кипра

Based on PwC data, the total amount of real estate transactions in Cyprus in 2020 was 3 billion euros, which is 32% less than in 2019.

This decline is mainly due to a significant decrease in transactions by foreign buyers, due to the adverse effects of the pandemic, which exacerbated the decline in activity in the first months of the year. After the abolition of the restrictive measures of the first quarantine in May 2020, there was an increase in activity, mainly due to domestic demand.

At the same time, the largest reduction in the number of purchase and sale transactions in 2020 was observed:

  • in Limassol - by 36%
  • in Paphos - by 47%
  • in Nicosia - by 12%.

It is worth noting that the high-value real estate sector suffered the most.

During the year, only 176 objects were bought in the country, the cost of which exceeds 1.5 million euros. This is 45% less than in 2019. The main reason is the cancellation of the Cypriot Citizenship by Investment scheme, on which the Cyprus luxury real estate market depends directly.

Against the background of these dynamics, the most stable category was residential real estate worth 100-300 thousand euros. This is mainly due to the high demand for housing, as well as an increase in demand for rental housing and transactions for the purchase of real estate in Cyprus for further rental.

Source: In-Cyprus, pwc.com.cy
Photos: pixabay.com
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