The Pandemic has spread all over the World. What has been the biggest change for property buyers in Cyprus in the last two years? Is their property market still on fire? Are we getting back to normal?

This is good news for the property market in Cyprus! According to a new report from Delfi Analytics’, indications are that it has been recovering and will continue doing so. Their research shows signs of a return to pre-pandemic levels.

The government’s plan to encourage mortgage applications and promote lending after the pandemic has been a huge success. Many transactions that were in progress before strikes were finally completed within two years of implementation!

Home sales and mortgages fell 4.2% and 4.4% in 2021 due to the pandemic. However, the good news is that the property market in Limassol and the surrounding area is experiencing an exceptional boom, growing by 82%. No wonder considering how many people move to this city.

Buyers go for existing houses

With the recent rise in popularity, people are turning away from new builds and opting for used properties. The report by Delfi Analytics says that, 14,228 property transfers occurred by November 2021. An increase of 3% over 2019 levels, but also 26.5 % more than two years ago!

While in Nicosia by November 2021, ownership transfers accounted for 27% and sales for 38%. For Limassol, compared to last year’s situation where mortgages accounted for 900 million euros; they reached 3.2 billion euros last year.

It’s interesting to see that while property sales in Paphos and the surrounding area have totaled over €2.5 billion since 2017. They declined by 35% over the last year compared with 2019-a trend that has continued over the previous five years of data collection. In contrast, though; Larnaca recorded an 8%- decline in 2021 compared to 2019, while sales increased by 5%.

While the pandemic and its variants will still have an effect on property markets in 2022, it is likely that people will continue buying ready-built second-hand homes. Because more of these can be found through banks or asset management companies

The property market has recovered from the pandemic and will continue to do so, according to a new study by Delfi Analytics. Their indicators are showing signs of returning to  pre-pandemic levels for the market!

Buyers also go for Apartments

Housing costs are on a rollercoaster ride in some areas, with house prices falling more than apartments. This was seen around Cyprus, where both quarterly and annual declines were recorded from to year-to-year levels.

House prices in Cyprus fell 0.3% year-on to quarter, but apartment values rose up by a massive 4%. This is mainly due to the strong demand for apartments in the last two years.

When it comes to the Cyprus property market, there are a few key reasons why people choose apartments over houses. One reason for this preference could be subsidies given new homebuyers that encourage them towards to buy an apartment. Rising rental prices as well, due not only to inflationary pressures but also the cost of building materials, are rising much faster than house values, which makes buying an apartment much easier.

More Nationalities are Arriving

The Cypriot property market has seen a rise in international interest, with more people from all over Europe flocking to buy homes on this beautiful island.

 The traditional British markets are not the only ones being targeted by this growing demand, but also Russians and Ukrainians among other EU countries. The Cyprus government’s investment card scheme has made it more attractive for people from all over the world to invest in citizenship and permanent residence. The low business taxes make this an excellent place of residence or starting/transferring your company’s headquarters here!

As more companies move to Cyprus, the country is seeing a rise in property purchases. Nationalities such as China (and others), India, Africa, Lebanon, Egypt, Jordan, Japan and others have bought homes from this island nation. The Cypriots, on the other hand, continue to represent the greatest proportion of buyers.

The Central Bank of Cyprus attributes the rising property prices to increased domestic demand. However, they also point out that there is a stabilization in interest from abroad because of this country’s international headquartering initiative, which has led some technology companies to move here.

Cyprus, one of the best Countries to relocate

With the perfect location, a low crime rate, weather that would attract anyone to settle in Cyprus, plus a well-educated workforce, this is an attractive place to be. A well – known report ranked them fifth best for relocations, with Switzerland being the only other European nation to rank first among the top five countries.

Conclusion: Recovery is a Reality!

When the pandemic hit, Cyprus seemed doomed to live in fear. But sith increased international interest and a rise of people from all around Europe flocking there for homes on this beautiful island, the Cypriot property market has seen new life!

It is likely that people will continue to buy ready-built used homes because more of them can be found through banks or asset management companies. With a pandemic and its variants in effect, there may still exist some push back on property markets, but it should not enough to stop buyers from purchasing new builds altogether as they come onto the market. The effects won’t last forever, even though we might see them decrease periodically over time.