The real estate sector has always been one of the most profitable investment opportunities.
Even in times of economic downturn, it is showing an upward and gradual recovery.
An exceptional example of this is the financial crisis in Cyprus of 2013. Despite all the difficulties, the real estate market coped with the blow faster than other sectors while contributing to the country's financial stability.
Even today, during the COVID-19 and the devastating consequences for the economy, investing in real estate is still considered one of the most immeasurable investment options. It is the perfect alternative in times of low deposit rates and uncertainty in international markets.
According to the latest data from the Cyprus Statistical Service (CyStat), the house price index for the second quarter of 2020 stood at 109.48.
Compared to the first quarter of 2020, the index increased by 0.3%; at the same time, compared to the corresponding quarter of 2019, it decreased by 2.9%.
Prices rose 1.1% year on year in the first quarter of 2020. In other words, it looks like real estate prices tended to increase in the period leading up to the coronavirus. In turn, the property price index of the Central Bank of Cyprus in the first quarter also showed an annual growth of 1.8%.
Following the lifting of strict restrictive measures since the end of May, the Land Register data and the Delfi Partners & Company report show a gradual increase in property sales in Cyprus.
However, when you are investing in real estate, you need to be extremely accurate.
Many factors should be considered before buying a new home: location, property type, area, etc.
In Cyprus, investment in real estate, which is located near universities, will undoubtedly be successful. And not only residential but also commercial. Since that is here, small communities with their own needs are often created—Engomi, Aglanzia, and Pallouriotissa districts in Nicosia.
Even though many educational institutions switched to distance learning due to the COVID-19, in the end, it will not replace classical education. Accordingly, the need for housing for students will always be in demand.
In addition to investment in residential projects, investment opportunities in tourism and commercial real estate are of particular interest. After all, on an island whose economy is heavily dependent on the tourism sector, all the attention after the coronavirus pandemic will be directed towards large investors from abroad and this segment's development.
Furthermore, to attract foreign companies to the island, appropriate measures are being taken to build residential and commercial properties, house the managers and employees of these companies. It is worth considering that an essential condition is the proximity of housing to the place of work.
Based on the above, Cyprus is an unambiguously attractive option for real estate investments, proving its resilience even in society's most challenging conditions.
The real estate sector will remain one of the strongest pillars of the Cyprus economy, which means there is no doubt that real estate on the island will always be in demand.