For the Cyprusproperty market, the past year ended ambiguously.
On the onehand, the sharp drop in prices predicted by many, never happened. Despite thepandemic and the difficulties that the Cyprus property market had to overcome,housing prices on the island remain fairly stable.
According to the Department of Land Registrations, in2020, 12,708 transactions for the sale of 14,663 real estate objects were madein the Republic of Cyprus for a total of 2.73 billion euros. This is 23.1% lessthan in 2019. However, it is worth noting that 2019 was the best year in termsof the number of transactions concluded over the past decade.
Nicosia became the leader in terms of sales.The capital of the island continues to show stable growth from year to year,despite external factors. The Nicosia real estate market is least dependent onsales to foreigners, which undoubtedly indicates the confidence of localresidents in the real estate market of their country. Limassol came second insales, followed by Paphos, Larnaca and the Free Territories of Famagusta indecreasing order.
On the otherhand, the real estate market could not be affected by 2 main negative factorsof the past year:
• 1. Corruption scandal and the subsequent closureof the program of granting citizenship of the Republic of Cyprus in exchangefor investment.
• 2. Pandemic and closed borders for most countriesof residence of potential investors.
The head of the Cyprus branch of the Royal Institute ofChartered Surveyors (RICS), Thomas Dimopoulos, said that he is convinced thatan accurate picture of how these factors affected property prices can be seenin one to two years.
It can be unambiguously argued,that 2020 will be remembered by realtors and developers as a year of anunprecedented increase in requests from clients permanently residing in Cyprus,as well as from investors who traditionally prefer to buy real estate duringthe crisis.
Note that low mortgage rates (thelowest in 20 years), the willingness of developers and property owners todiscuss prices and discounts, as well as almost zero profit on deposits and thelack of alternative forms of investment, are very welcome to buy a home.