As the world returns slowly to normal, what has changed for home buyers in Cyprus over the past two years? Above all, what has happened to the property market in Cyprus?
According to a new report from Delfi Analytics’, the property market iin Cyprus is recovering. Indeed their report Real Estate Dynamics in Cyprus, found indications that the market is returning to pre-pandemic levels.
The government’s subsidy plan encouraged an increase in mortgage applications, and many transactions that were in the pipeline before the pandemic struck were finally completed in 2021. Although property sales and mortgages were down 4.2% and 4.4% respectively in 2021, mortgage values increased 82% due to a property market boom in Limassol and its surrounding areas.
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Buyers opt for existing homes over new builds
The most recent trend is for people to buy existing homes, rather than new builds. Delfi Analytics’ report says that 14,228 property transfers for used properties occurred by November 2021. That’s 3.4% higher thaa 2019 and an incredible 26.5% more than the figure for 2021.
In Nicosia, property transfers made up 27% and property sales were 38% by November 2021, higher than in 2019. For Limassol, the report emphasises the point that compared to 2019/2020, when mortgages accounted for €900m, they accounted for €3.2bn in 2021.
Although property sales over the past five years in Paphos and its surrounding district were over €2.5bn, property sales and mortgages were down 35% and 15% respectively in 2021 compared to 2019. In Larnaca, property sales were down by 8% in 2021 compared to 2019, and sales rose by 5%.
The report concludes that the while the continued pandemic and its variants will still have an effect on the property market in 2022, it is likely that people will continue to buy ready-built used homes because more of these will become available via banks and asset management companies.
Cyprus welcomes more international buyers
The nationalities of people who buy properties in Cyprus has expanded beyond the traditional British markets, to include a wider number of European countries, plus Russians, Ukrainians and others too.
Now, because of the government’s passport investment scheme (the “golden visa”), permanent residency scheme and low business taxation, many more nationalities have looked at Cyprus with a view to living here or starting/transferring businesses here.
As they move their businesses here, so they buy homes here too. So, Cyprus has seen new nationalities buying property, including those from China, India, Africa, Lebanon, Egypt, Jordan and Japan among others. However, the Cypriots still remain the largest properortion of buyers.
Cyprus 5th best country for relocation
Another report has ranked Cyprus as the fifth best countries to relocate to, with Switzerland being the only other European country placed in the top five. Cyprus’s location, low crime rate, brilliant weather, reasonable taxation and well-educated workforce is bringing overseas people to Cyprus to live and/or start businesses here.