The main question that worries all landlords and tenants due to the second wave of the coronavirus pandemic and the Citizenship by Investment program's cancellation is what awaits the Cyprus property market shortly.
Already, realizing all the risks, many owners are in a hurry to transfer their assets from the short-term lease to a long-term lease. As a result, the number of offers is growing, which means that rental prices will soon fall.
According to Danos & Associates, in some Cyprus cities, home sales prices will remain stable in 2021, while in others, they will decrease or increase.
For example, according to experts' forecasts, in Limassol, prices will practically return to the level of 2018, i.e., will stop at around € 3000 to € 4500 per m2. Compared to the cost of housing in 2020, the minimum selling price per m2 in 2021 will decrease here from € 3500 to € 3000, while the maximum sales price per m2 will increase from € 4000 to € 4500.
Impressive forecasts of price fluctuations for the sale of homes in Nicosia in 2021. According to experts, prices in the capital will return to the level of 2014-2015. In other words, the minimum selling price per m2 will drop to € 1900 (in 2021, the average price fixed at € 2000), and the maximum one - to € 2200 per m2.
In Paphos, the average selling price of detached houses per m2 will be fixed at around € 2,500, up from € 2,800 per m2 in 2020. In turn, the minimum selling price per m2 in 2021 will decrease from € 2800 to € 2500, while the maximum selling price per m2 will increase from € 3000 to € 3600. It is worth noting that the highest selling price per m2 was recorded in Paphos in 2017–2019 - € 4200 per m2.
But in Larnaca, significant fluctuations are not predicted. According to Danos and Associates, the average maximum selling price will remain at € 2,700 per m2, the same as in 2020. The average minimum price per m2 will drop from € 2,200 to € 2,000. It is worth noting that the highest selling price per m2 was recorded in Larnaca in 2018–2019 - € 4000 per m2.
In Famagusta in 2021, prices will be at the same level as in Larnaca. The price range will be from € 2000 to € 2700 per m2, compared to € 2300 - € 2800 per m2 in 2020. It should be noted that the highest selling price per m2 was recorded in Famagusta in 2017–2019 - € 4100 per m2.
The cost of renting real estate in 2021 by the city of the island:
- Limassol - on average, rents will vary from €16 to €35 per m2, compared to € 20 - €40 per m2 in 2020;
- Nicosia - on average, rents will vary from €7 to €11 per m2, compared to € 8 - €10 per m2 in 2020;
- Larnaca - on average, rents will vary from €6 to €10 per m2, compared to €8 - €10 per m2 in 2020;
- Famagusta - on average, the rent will vary from €8 to €14 per m2, compared to €10 - €12 per m2 in 2020;
- Paphos - on average, rents will vary from €8 to €14 per m2, compared to €10 - €12 per m2 in 2020;
Panos Danos, CEO of Danos & Associates, stressed a sharp drop in Paphos, Larnaca, Famagusta, and Limassol, which were traditionally most popular with investors from Germany, Great Britain, the Gulf Countries, China, and Russia in 2018 and 2019, is possible. Years, as well as early 2020 due to the citizenship program.
However, after the cancellation of the Cyprus investment program and COVID-19, which directly affects supply and demand, the Cyprus property market may change dramatically.
Photos: DOM LiVE