Luxury apartments in high-rise buildings in Cyprus will lose their appeal for investors by 2024.
This is the conclusion reached by Deloitte employees on the basis of a survey they conducted among experts in the local housing market.
The survey was conducted at the beginning of 2024 among more than 100 specialists from companies operating in the real estate sector. They were asked to share their views on issues related to the development of the housing market in Cyprus, highlighting their investment priorities and expected results. Respondents generally indicated that they did not expect any fundamental changes in the property sector in 2024. The majority said that the cost and availability of finance will not change, although around 40% said they expect the affordability of both residential and commercial property to increase. At the same time, 55% predict that there will be no significant change in property rental activity.
Interestingly, six out of ten respondents said they did not expect any change in total investment from local capital in 2024.
At the same time, opinions were divided on foreign capital inflows, with 38 per cent expecting an increase, 36 per cent a decrease and 26 per cent no change. On the other hand, the majority of respondents believe that demand for housing will continue to grow throughout 2024, with a focus on resale and renovation. Around 50 per cent predict that house purchase and rental prices in 2024 will remain at the same level as in 2023.
The most significant change expected in the property sector by respondents to the Deloitte survey in Cyprus relates to luxury high-rise projects. Specifically, 56% and 44% of respondents believe that sales and rental prices respectively will decrease in 2024. On the other hand, only 12% and 10% respectively believe that the sale and rental prices of properties will increase.
When asked which type of property would be most attractive to investors over the next 12-18 months, 26% said apartments and 19% said student accommodation. This was followed by city centre offices (12%) and buy-to-let residential properties (12%). Finally, respondents said they thought commercial properties, retail properties and shopping centres were the least attractive of all property types for investment.
I would partly agree with the view that demand for luxury apartments in high-rise buildings has fallen. However, much depends on the location and quality of the project. In Limassol, for example, it is almost impossible to find vacant apartments in quality high-rise complexes. In The Ritz-Carlton Residences and Trilogy, there are virtually no vacancies. Only non-view apartments on lower floors are available. In other words, as long as buyers are willing to pay for quality apartments with magnificent views, - commented on the situation in the Cyprus property market Maxim Arte, a broker from the DOM office in Limassol.