WEDNESDAY, 21 APR 2021

 

CONNECT

Facebook Linked In Twitter
GAP Vassilopoulos
GloriaJeans_266x90px
IMH LTD

Angela Merkel Must Beat The Pandemic To Save Her Legacy

Μοscow Hopes Geneva Meeting Will Help Relaunch The Cyprus Negotiations

IMH LTD

REAL ESTATE

brought to you by Deloitte

PwC Cyprus Releases Latest Cyprus Real Estate Market Publication

PwC Cyprus Releases Latest Cyprus Real Estate Market Publication

PwC Cyprus has launched its latest Cyprus Real Estate Market publication, which comes in an unprecedented period for Cyprus and the global economy.

 

The publication entitled “Cyprus Real Estate Market – Year in Review 2020” provides insights on the performance of the sector during 2020, which was impacted by the pandemic, with significantly reduced transaction activity during the first half of 2020 and signs of partial recovery during the second half of the year.

 

According to PwC analysis, the total value of transactions during 2020 reached €3bn, recording a drop of 32% compared to 2019. The decrease is mainly attributed to the significant drop in transactions from foreign buyers due to the adverse effects of the pandemic, which exacerbated the already reduced levels of activity observed during the earlier months of the year. Following the lift of the first lockdown measures in May 2020, increased levels of activity were observed, primarily driven by the domestic sector.

 

All districts of the island experienced double-digit drops in the value of properties transacted during 2020. The coastal districts of Limassol and Paphos, where demand is predominantly driven by the foreign segment, demonstrated a steep decline in transaction value terms (36% and 47% respectively) on an annual basis. Nicosia on the other hand, being the domestic segment stronghold, was relatively more resilient, recording an annual 12% drop in transaction value during 2020. 

 

According to the analysis, the high-end residential property segment was perhaps the most badly hit segment, with total sales of residential properties (≥€1,5mln) plummeting to 176, recording a drop of 45% compared to 2019. Given that the high-end residential property segment has been linked to Cyprus Investment Programme (CIP) buyers, the termination of the programme creates uncertainty with regards to the future of this segment and intensifies the need to re-focus and transform the industry and its product offerings.

 

It is also interesting to note that, one of the most resilient segments of the sector during the year relates to residential properties in the range of €100.000 - €300.000, which following the lift of the first lockdown measures in May 2020, recorded accelerating levels of demand. This is mainly the consequence of strong demand for primary residences and also increasing activity for private-rented housing and buy-to-let transactions.

 

As regards the construction sector, the number of new building permits recorded a marginal annual decrease of 3%. However, in value terms the drop amounts to 27%, indicating that new projects were on average of a smaller scale. The drop observed is mainly attributed to the first lockdown measures, as following the lift of these measures there were signs of partial recovery. Specifically, the volume and value of new permits during the second half of the year recorded an increase of 23% and 44% respectively, compared to the first half of 2020.

 

Commenting on the publication, Constantinos Constantinou, Head of Advisory at PwC Cyprus highlighted the need for reforms in the real estate sector. «Given the challenges posed by the COVID-19 pandemic there is an urgency to pursue a much-needed reform of the real estate sector, set new priorities and devise new strategies for the future. In our new edition, PwC’s experienced professionals provide a snapshot of the sector and present their suggestions for the development of a sustainable long-term plan that will allow the industry to return to its upward course, contributing to economic growth» he noted.

 

The publication is available online at www.pwc.com.cy/real-estate.

MORE ON REAL ESTATE

FROM AROUND GOLDNEWS

   

Government Considering Extending Measures Against COVID-19

The government is considering an extension of the existing measures against COVID-19 until 15th May to curb the spread of coronavirus, however small exceptions ...
   

Angela Merkel Must Beat The Pandemic To Save Her Legacy

Angela Merkel has been in the top job for nearly 16 years, but the biggest challenge of her career might still lie ahead. The German Chancellor is racing ...
   

EY Cyprus Appoints New Country Managing Partner

EY is pleased to announce the appointment of Ronald Attard as the new Country Managing Partner for Cyprus. Ronald joined EY in 1999 and moves into the Cypriot ...
   

Vaccine Hopes Boost Euro, Dollar On Back Foot As Yields Off Highs

The dollar wallowed near a six-week low against its peers on Tuesday as the euro led a rally on the back of a brightening outlook for the region's ...
   

Carbon Emissions To Soar In 2021 By Second Highest Rate In History

Carbon dioxide emissions are forecast to jump this year by the second biggest annual rise in history, as global economies pour stimulus cash into fossil fuels ...
   

Μοscow Hopes Geneva Meeting Will Help Relaunch The Cyprus Negotiations

Moscow welcomed the UN Secretary-General’s initiative to hold an informal five-plus-one meeting dedicated to the Cyprus issue in Geneva on April 27-29 ...
   

European Super League: How Europe has Reacted

The news of a new European Super League has created a strong and, almost overwhelmingly angry, reaction across the continent. Arsenal, Chelsea, Liverpool, ...
   

Tourist Arrivals In January - March Drop By An Annual 93%

Tourist arrivals for the period of January - March 2021 amounted to 246,556 recording a steep drop of 92.8% compared with the respective period of last year, ...
 

YOUR COMMENTS

HEADLINES

MOST POPULAR

Gordian_17/03/21-30/11/24_300x250px
IMH_COMPANY_PACK_2021

IMH LTD