Wire-FS, an independent real estate asset management and advisory firm has conducted another analysis of the Cyprus housing market.
According to the study, it turned out that Nicosia was the least negatively affected by the coronavirus pandemic.
Real estate purchase and sale transactions in the capital not only remain at a stable level, but also show a relative increase.
At the same time, if we consider the total number of contracts concluded in the country, then the largest percentage falls on transactions for the sale and purchase of apartments in the area of large cities of the island.
Thus, in the period from the first quarter of 2020 to the second quarter of 2021, the total amount of purchase and sale transactions in Cyprus amounted to 1.1 billion euros. Of these, 411.9 million euros or 40% fell precisely on transactions with apartments. In total, 2803 apartments were sold in the country in 1.5 years.
From the data we analyzed, it is clear that most transactions were recorded in Q4 2020, which is normal given the constraints and volatility that prevailed in the previous period due to the pandemic, Wire-FS noted.
In terms of house transactions, from the first quarter of 2020 to the second quarter of 2021, 1,218 units were sold in Cyprus for a total of 278.6 million euros. Again, most of the deals were in Q4 2020.
In general, buyers are showing interest in all types of real estate in the capital. But they are especially interested in objects in Nicosia's suburbs. In addition to apartments and houses, over the past 18 months, 1,828 fields worth € 122.7 million have been sold here, 1,225 land plots for residential development worth € 184.4 million and 386 other types of real estate worth € 133.3 million.
In total, during the reporting period, 7460 transactions of purchase and sale of real estate of various types were recorded in the capital.
It is noteworthy that, although 1,828 land plots were sold in Nicosia, their total value was only 112.7 million euros. With low interest rates and the general uncertainty we face, real estate seems to many to be a good investment alternative. Keep in mind, however, that investing wisely in real estate is not an easy task. Buyers should remember that this is a liquidity investment that, if not managed properly, may not deliver the expected results and returns, Wire-FS added.
As for real estate prices in the reporting period, the average cost of apartments was 146 thousand euros, houses - 228 thousand euros, fields - 67 thousand euros, and plots for residential development - 150 thousand euros.
Another interesting finding from the Wire-FS data is that two-thirds of transactions are in urban areas, while in terms of value, 90% are in urban areas.
The buying interest prevailing in the Cyprus property market in recent months is an excellent indicator for local land development entrepreneurs in terms of where they should go. There is no doubt that apartments in the suburbs, close to all amenities and services, will continue to be in good demand, - concluded in Wire-FS.
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