SUNDAY, 19 SEP 2021

 

CONNECT

Facebook Linked In Twitter
gold_september-leaderbard
GloriaJeans_266x90px
IMH LTD

Austria Sends Cyprus Messages Of Solidarity And Support

Cyprus President To Brief EUMED Counterparts

IMH LTD

OPINION

As Societies Change So Do Properties

As Societies Change So Do Properties

In the US, large companies and high-net-worth individuals who purchase houses and apartments either to resell them or rent them to third parties, currently make-up 20% of all property buyers. This trend has been progressing in an upward direction for the last two years, as people with the necessary financial resources buy properties intending to rent them back to their previous owners or put them back in the market in search of a tenant. As financial crises become more frequent, there is an increasing number of people who see the sale of their properties as an opportunity (a misnomer) to generate cash to finance the repayment of their loans. At the same time, Generation Y (those born in the ‘80s and the ‘90s) has shown its preference towards renting properties rather than being homeowners and being in city centers where there are more amenities.

In the US, out of some 140 million housing units, approximately 80 million are family homes. And, out of these family homes, some 15 million are being rented, with 300.000 homes in the hands of institutional investors. The rest, in their majority, are owned by independent professionals. While a relatively low number, it is enough to gauge in which direction the wind is blowing. 

In Cyprus, the idea of owning a house still resonates with a lot of people. However, we believe that the local market will progressively follow a similar trajectory to the US, as have most European countries. A recent WiRE FS analysis of transactions that took place in Nicosia over the past 18 months, showed that some 40% of the transaction value involved apartments, while two-thirds of these transactions took place in urban areas. This indicates the increasing trend by mainly younger Cypriots to acquire apartments instead of houses (cheaper, smaller, closer to amenities, etc) and many acquisitions being from investors looking to generate a rental income by tapping-into the growing demand to rent.

Taking a step further and looking at data released by Eurostat, it becomes easier to see that owning a property is somewhat losing its appeal. In 2009, property owners constituted 74.1% of the Cypriot market, in 2013 that number fell to 73% and in 2019 (latest available data) it dropped even further to 67.9%. In fact, 2019 marked the first year where the percentage of property owners in Cyprus fell under the EU 27 average (69.8%).

With the country’s demographics shifting (less births, smaller families) and changes in social norms (increase in employment – more women in the workforce, greater need for letting out steam/ entertainment, etc), this inevitably affects peoples’ housing needs. Nowadays, most people don’t want to go for the big house with the front lawn and the swimming pool. They want a smaller, functional unit, close to amenities and with low running costs, as they expect to spend a significant amount of their time going out for coffee/ dinner and travelling. Besides, the number of people who can afford these properties has significantly decreased compared to thirty years ago. This is something we also observe on the websites of asset management companies: big houses don’t sell for years, whilst apartments tend to be considerably more liquid.

In Cyprus, the population and households have significantly increased over the last thirty years (from 185,459 households in 1992, to 303,242 in 2011), which brought about a lot of changes in the supply of residential property. However, the main increase in supply has been to cater for overseas buyers rather than locals, as the native population has progressively aged and family size shrunk over the past two decades. While we are waiting in anticipation to see what the 2021 census will show, the number of households (i.e. permanent residents) with one and two people in 1992 stood at 69,418 and 156,679 respectively, making up just 37% of all households. In the 2011 census, that number jumped to 52%. On the other hand, the number of households with four people or more, fell from 45% in 1992, to 30% in 2011 (83,792 in 1992, 91,266 in 2011).

The layout of housing units being developed has also changed. In the 2001 census, properties with up to 5 rooms (including kitchen and living room) made up 52% of the whole, while in 2011 that number went up to 61%. During that same period, the largest percentage increase was found in houses with three and four rooms (18% and 23% respectively); this is in line with how households changed over time, with family size decreasing and young Cypriots having 1-2 kids.

The trends in the property market will keep following the accelerated demographic shifts. The state, as well as the private sector, i.e. developers, banks, investors, etc, need to make the necessary strategic steps to take account of these, so that they are not placed in a position where they are forced to rush into decisions after the fact.

MORE ON OPINION

As Societies Change So Do Properties

In the US, large companies and high-net-worth individuals who purchase houses and ...

Is Asynchronous Communication The Future Of Work? The Power Of A "No Meetings" Policy In Practice

If you gave people a magic wand and asked them what they would change in their daily work ...

The Worst Investment You Can Have Right Now Is Cash

Cypriot Investment culture  There is no doubt that Cypriots favourite long-term ...

FROM AROUND GOLDNEWS

   

Bitcoin Uses More Power In 2021 Than All Of 2020 As Climate Debate On Crypto Mining Heats Up

Bitcoin has already used more power so far this year than it did in all of 2020, a new study has suggested, as the debate on the impact of cryptocurrency ...
   

Cyprus' Participation In Bright Star Exercise ‘The Largest One Abroad’

Chief of National Guard, lieutenant general Dimokritos Zervakis has told CNA that the participation of Cypriot forces in the "Bright Star 2021" multinational ...
   

US Attempts To Curb French And EU Backlash Over Indo-Pacific Pact With UK And Australia

The White House has attempted to diffuse the backlash over its decision to exclude European Union partners from a new Indo-Pacific security pact. The ...
   

Austria Sends Cyprus Messages Of Solidarity And Support

Austria on Thursday sent clear and sound messages that it stands by Cyprus and shows full solidarity as regards the migration influxes from Turkey and as ...
   

Cyprus President To Brief EUMED Counterparts

Cyprus President Nicos Anastasiades is set to brief his counterparts at the EUMED Summit, on Friday, in Athens, on recent developments in the Cyprus issue and ...
   

GOLD New Issue: Smart Shipping

GOLD has devoted a number of cover stories to the shipping industry over the past 10 years, but the September issue slightly shifts the emphasis from the local ...
   

EU Launches Health Crisis Body To Prepare For Future Pandemic

The European Commission launched on Thursday a health crisis body that will coordinate EU spending of almost €30 billion (US$35.3 billion) to prepare for ...
   

Parliament Postpones Local Authority Elections Until May 2024

The Plenary of the Cyprus House of Representatives decided on Thursday to postpone the elections for local authorities and therefore the tenure of the mayors ...
 

YOUR COMMENTS

HEADLINES

MOST POPULAR

Limassol_Economic_Forum
GOLD_SUBSCRIPTION

LINKS

SITEMAP
Newsletter Subscription
Our Company
Business Media
Subscriptions
Advertising
ContactUs
Terms & Conditions
GOLD MAGAZINE
Top 300+ Limassol Based Companies
50+ Biggest Audit, Accounting & Tax Advisory Firms in Cyprus
80+ Leading Law Firms in Cyprus
First Place For Tsouloftas-Elia Crew Of Petrolina Racing Team At The Larnaca Acropolis Rally
John Christodoulou On His Career, Philanthropy And Painful Childhood Memories Of The 1974 Turkish Invasion
With Medochemie's Best Wishes, Our Champions Fly To Tokyo
Dr Despina Serghides Receives World Renewable Energy Network “Life Pioneers” Award
Emir of Kuwait Reaffirms His Country's Principled Position On The Cyprus Problem
Health Minister: Situation In ICUs Manageable
FTSE Bosses Earn 86 Times More Than Average Worker In 2020
Cyprus Among The Top States In Absorbing EU Cohesion Funds
Policy Groups Ask Apple To Drop Plans To Inspect Imessages, Scan For Abuse Images
Narratives Blaming The Greek Cypriot Side For The Failure In Crans Montana Are Refuted, President Says
Perdios: Tourists From New Markets Expected In Cyprus In Coming Months
Cyprus Government Denies Claim That Afghan President Was Seeking Asylum In Cyprus
Number Of COVID-19 Patients In ICUs Remains High But Stable
Education Minister And Chinese Ambassador Discuss Enhancement Of Bilateral Relations
Hackers Steal Nearly US$100m In Japan Crypto Heist
Amazon Reportedly Plans To Open Department Stores
Chief Of Lebanon's Armed Forces Pays Official Visit To Cyprus
Cyprus Cabinet Meeting Takes Place In Presidential Summer Residence In Troodos
Christodoulides: Discussions In Israel “Forward-Looking And Substantive”
EU Says No Recognition Of Taliban, No Political Talks
Price Of Bread And Cereals In Cyprus Ranks Sixth Highest In The EU
Trade Deficit Up In First Five Months Of 2021
Turnover Value Index Of Transport And Storage In Cyprus Significantly Up In Q2 2021
Changes In Epidemiological Risk Assessment Of Countries Concerning COVID-19 In Cyprus
Cyprus To Revoke Passports Held By 'Officials' Of Turkish Occupying Regime
Leading Economic Index Records Increase In July 2021, Uncertainty Remains Amid Increased COVID-19 Cases
The Importance of Sustainable Investing for Investors, Businesses and Society
Cyprus Health Ministry Releases Vaccination Numbers
Ursula Von Der Leyen Outlined The EU’s Initial Plans Regarding Afghanistan
Russia Must Not Use Gas Pipeline As Weapon, Says Merkel
Banks Expect Stricter Lending Criteria For Households And Increase In Loan Demand, CBC Survey Says
Six Investors Shortlisted For The Sale Of Loans By State-Owned Asset Manager KEDIPES
Cyprus Shipping Deputy Ministry Welcomes Opportunity For Shipping Leaders To Meet Again In Person At Biennial Conference
Powercash21 Announces Wix Payment Provider Integration
EU Commission Misses Deadline To Trigger Rule Of Law Mechanism
Charles Michel Calls for Wider G7 Engagement and International Action in Support of Afghan People
NPLs Down By €7 Million In May 2021, The NPL Index Stands At 18%
Anastasiades: Tatar's Remarks Are Invalid, Passports Revoked Only For Some Turkish Cypriots
The Worst Investment You Can Have Right Now Is Cash
Minister of Health Tells Students That Decision About Return To Universities Will Aim To Safeguard Their Health
Nord Stream 2 Pipeline Must Follow EU Competition Rules, Says German Court
Is Asynchronous Communication The Future Of Work? The Power Of A "No Meetings" Policy In Practice
Climate Change: Europe's 2020 Heat Reached 'Troubling' Level
Cyprus Hands Over 12% Of COVID-19 Vaccine Doses To Turkish Cypriot Community
UCY ERC: Economic Sentiment Rises In August, But Uncertainty Remains
Deposits Continue To Rise For Fifth Consecutive Month, Loans Mark Second Monthly Increase
Electricity Prices Skyrocket, As Natural Gas And Renewables Projects Still In The Pipeline
Health Minister: No Need For More Measures Now
Boris Johnson: UK To Continue Kabul Evacuations Despite Deadly Airport Attack
Apple Agrees To App Store Changes Letting Developers Email Users About Payment Options
The Rise Of IT Security Threats And The Need For Data Protection
House Speaker Says The Effort For A Reunified Cyprus Continues
Christodoulides: Republic Ready To Participate In Any Meeting UNSG Wishes To Call On Cyprus
From Betting Shop To International Product Company: The Transformation Of Parimatch Into Parimatch Tech
Coming Months And 2022 Will Be Crucial For Fiscal Sustainability Says Petrides
Cyprus President Receives Credentials Of New Ambassadors Of Austria, Romania And Palestine
IFLR100 Financial And Corporate Rankings Place Elias Neocleous & Co LLC as ‘Tier 1’ Legal Firm
Restarting The Global Economy… The Right Way!
House President Meets With Outgoing Greek Ambassador
Successful Presence Of Cyprus In European And International Olympiads In Informatics
As Societies Change So Do Properties
The Human Factors That Build Resilience
President To Meet With Negotiating Team On The Cyprus Issue
Toyota Restarts Driverless Vehicles After Accident
Revenue From Tourism In June At €135.8 Million
Deputy Minister For Shipping To Participate In European Maritime Transport Environmental Report Meeting
A Total Of 70% Of The EU Adult Population Fully Vaccinated
Biden Defends 'Extraordinary Success' Of Afghanistan Evacuation Amid Criticism
Industrial Output Prices Jump In June 2021
Pilidou: Resumption Of Exploratory Drillings In Cyprus EEZ At Final Stage Of Preparation
Bank Of Cyprus Posts €1 Mn Profit For First Half Of 2021
Blockchain and Cryptocurrency Technology Digital Conference
SAVE THE DATE: 12th Limassol Economic Forum
Foreign Minister To Participate In Gymnich Meeting In Slovenia
The Taycan Updated: More Range, More Connectivity, More Colours
General Government Deficit At 3.1% Of GDP For First Seven Months Of 2021
Eurostat: Cyprus Unemployment Falls To 5.2% In July From 7.9% Last Year
GDP Growth At 12.9% In The Second Quarter Of 2021
Cyprus And Israel Ministers Of Energy Discuss Next Steps In Common Projects
5th Business Leaders Summit
Cyprus President Outlines Proposal To National Council
Cyber Threats and Data Protection: The Complexities of a New Reality
Christodoulides Says EU Must Be More Actively Engaged In The Region
Petrides: Eurostat’s Unemployment Data Show Success Of Our Policies
Energy Prices Push August Inflation Spike
ECB Purchases Billions In Cyprus Government Bonds
Free Startup Mentorship Programme Launches Open Call For Applications
Hermes Airports: Significant Improvement Of Cyprus Tourism
EY And IIF Risk Management Survey Shows Climate Change Now A Top Concern For Banks
Anastasiades Praises Outgoing Cysec President Over Capital Market Growth
Energy Minister Satisfied With Cairo Energy Meetings
Ambassador: Cyprus And China Should Seize Opportunity To Forge Closer Ties
European Banks Still Booking Profits In Tax Havens, Says Report
Action Global Communications Appoints Dimitris Ioannides Group Innovation & Growth Leader
Lidl Is The First To Adopt Green Retrofit Programme With EDGE In Cyprus
Do You Want To Improve Your Country? Invest In Children’s Physical Activity! How Boost4Best Supports Young Athletes Of Cyprus
Government Will Continue Supporting Economic Activity, FinMin Says
BidX1: Unique Residential Opportunities In Upcoming Digital Sale
Agreement Reached On Ten Steps To Speed Up Banking Procedures
eToro Becomes An Official Partner Of Leeds United
Cabinet To Discuss Implementation Of Government Reforms, Projects And Policies
Cyprus And Egypt To Establish Joint Maritime Committee
Petrides: Recovery And Resilience Plan Important For Growth
Building Permits In First Half Of 2021 Mark Significant Recovery
Cyprus’ Comparative Investment Advantages Presented In Berlin
Useful Things To Consider Before Relocating To Cyprus
Allianz Under Investigation In Germany Over Investment Funds
CIM-UWL 10th Anniversary Celebrations
President Stresses Importance Of Timely Reform Implementation
Total Employment In Cyprus Up 1.2% In Q2
Merkel Implores Germans To Back Conservatives As They Hit Record Low
Von der Leyen Calls On Turkey To Reverse Actions Taken In Varosha
Information Security & Data Privacy Conference Presented By BDO
The 9th Invest Cyprus International Investment Awards
The 9th Invest Cyprus International Awards: Easybrain
The 9th Invest Cyprus International Investment Awards: ENESEL Limited
The 9th Invest Cyprus International Investment Awards: Exness
The 9th Invest Cyprus International Investment Awards: Nexters
The 9th Invest Cyprus International Investment Awards: Parimatch Tech
The 9th Invest Cyprus International Investment Awards: Plus500
The 9th Invest Cyprus International Investment Awards: Teddy Sagi
Cyprus And Saudi Arabia Explore Prospects For Further Enhancement Of Relations
Petrides: Banking Sector Challenges Ahead Despite Progress
The Winners Of The 9th Invest Cyprus International Investment Awards
Imarcomms Announces The New Release Of DMI’s Professional Diploma In Digital Marketing - Version 9
Karousos: Larnaca Port and Marina Is Cyprus’ Biggest Ever Project
Petrides Welcomes Disbursement Of Pre-Financing From RRF To Cyprus
Total Sales Of Cyprus Industrial Products Up In 2019
Trade Deficit Rises In June And First Seven Months Of 2021
Petrides to Attend Eurogroup And Thessaloniki International Fair
Porsche Presents Its Future-Driven Mission R Concept Study
Infocredit Group Facilitates Tax Research Using LexisNexis TolleyLibrary & TolleyGuidance
Qatar Airways launches global destination sale with special fares to over 140 global destinations
House President: The UN Must Create A Climate For Constructive Negotiations
TechIsland Congratulates Winners of 9th International Investment Awards
Apple Still Reliant On One Core Product As It Nudges $3tn Hurdle
Vaccination Coverage Of Adults In Cyprus Reaches 80%
Zela Aviation And Precision Air Strategic Agreement
Cyprus President Anastasiades Begins Official Visit To Bahrain
CIFA: Investment Funds Sector In Cyprus Continues To Grow
Outgoing CySEC Chairwoman Calls On Her Successor To Continue With Vision For Safe And Reliable Capital Market
Cyprus And Bahrain FMs Sign Visa Waiver Agreement
Spehar: UN To Decide About A Trilateral Meeting On Cyprus
Commission Approves 22 Million For Cyprus Village Wastewater Collection System
Teddy Sagi’s Kape Buys Rival ExpressVPN For $936m
Τotal Government Employment Reached 52,321 Persons This August
Health Minister: Vaccination Rates Allow Us To Look Into Future With Optimism
Climate Anxiety As Global Study Reveals Three-In-Four Young People Think 'The Future Is Frightening'
US and EU Pursuing Global Deal To Slash Planet-Warming Methane
Pilides Discusses Investments And More With Bahraini Ministers
Demetriou: Cyprus and Sweden To Further Enhance Bilateral Relations
UK Delays Post-Brexit Border Checks On EU Imports Again, Citing Supply Chain Issues
Ioannis Matsis Is The New Chairman of Invest Cyprus
Infocredit Group Proudly Sponsors the 7th International Compliance Forum
eBOS Technologies Ltd Launches Video Series On H2020 Projects
Cyprus Commercial Air Transport Reduced But Recovering
Cyprus At International Chamber Of Shipping Meeting In London
VTTI Acquires Bioenergy Project In The Netherlands
George Theocharides Becomes New CySEC Boss, With George Karatzias Appointed as Vice-Chairman
PMI Cyprus Chapter Online Seminar: The Neuroscience of Leadership
Christodoulides To Meet Austrian EU And Constitution Minister
Anastasiades To Attend EUMED And UN General Assembly
Cyprus-Egypt To Proceed With ‘Aphrodite’ Natural Gas Transfer Study
Cyprus Chessemakers Association Challenges Halloumi’s PDO Status
Brussels Must Not Invent New Conditions For EU Membership, Says Merkel
Circular Economy And The Redefinition Of Mode Of Production
Cyprus Marine Club Event On New Innovative Technologies And Decarbonization
Dr. George Theocharides: “CySEC Will Continue To Act As A Protective Shield For Investors”
Parliament Postpones Local Authority Elections Until May 2024
EU Launches Health Crisis Body To Prepare For Future Pandemic
GOLD New Issue: Smart Shipping
Cyprus President To Brief EUMED Counterparts
US Attempts To Curb French And EU Backlash Over Indo-Pacific Pact With UK And Australia
Austria Sends Cyprus Messages Of Solidarity And Support
Cyprus' Participation In Bright Star Exercise ‘The Largest One Abroad’
Bitcoin Uses More Power In 2021 Than All Of 2020 As Climate Debate On Crypto Mining Heats Up
IMH LTD