Property experts in Cyprus have expressed concern about the situation in the Middle East, which they say is affecting the island nation.
They highlighted some of the trends now taking place in the Cypriot property market:
- Properties in Limassol are being bought up en masse by Israelis. The story is exactly the same as that of the Russian migrants. True, with one exception. Israeli citizens prefer to invest their money in more affordable options.
- The Lebanese prefer Larnaca. Entrepreneurs from that country are rushing to move their offices to the coastal town, and ordinary people are fleeing the war. The former are more likely to buy homes, while the latter tend to rent apartments in Larnaca.
Many agree that in the event of further escalation, refugees from the Middle East will seek temporary accommodation in Cyprus. This, in turn, could at least increase the demand for rental properties. Accordingly, if the number of offers on the rental market decreases, prices may rise. Experts note that the demand for rental properties in Limassol has already increased. Therefore, they do not rule out an increase in rental prices in the coming months.
In addition, many are concerned about the reorientation of local developers towards the construction of commercial facilities. In fact, dozens of office buildings are currently under construction all over Cyprus, which could lead to an oversupply in this segment. Moreover, there is a risk that some of these projects will remain unoccupied.
Cypriot experts also note an increase in cases of unfair competition between Israeli and Cypriot developers. Recall that the former are now actively developing the area around the new casino in Limassol. Local developers have high hopes for a further opening of the market towards the end of the year, 'when Cyprus will join the Schengen zone, as promised by President Nicos Christodoulidis'.
In Nicosia, the lion's share of the property market is occupied by Cypriot buyers. At the same time, the number of foreign buyers is growing steadily. This is mainly due to the favourable prices of property in the capital.
At the moment there is a healthy supply and demand, so property prices in Nicosia have stabilised. If the Middle East conflict spreads to new areas, we expect an influx of foreigners, especially from Israel and Lebanon. But there is enough supply on the market so there is no need to worry," experts say.
In Larnaca, Israelis are still the leading foreign buyers. However, they have recently been overtaken by the Lebanese. Citizens of these two countries are not only investing in individual properties, they are building entire complexes, including commercial ones. Mostly in areas such as Dekelia and Oroklini.
The Israelis have the advantage in the city, but the Lebanese are not lagging behind. Many citizens from these countries have already bought houses in Larnaca. But if Israel launches ground attacks in Lebanon, Cyprus will be flooded with refugees looking for temporary accommodation,' experts say.
Finally, as far as Paphos is concerned, property prices and rents in this Cypriot town are now on the rise.