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The ripple effects of the Coronavirus pandemic has been felt across the world and has been very challenging for the majority of the businesses - such as the real estate industry.
Property sales in Cyprus specifically have suffered a massive hit as property sales dropped 71 percent in May in terms of the number of transactions recorded at the Land Registry.
In April, the Cypriot property market experienced its sharpest decline since 2013 – during the island’s financial crisis – when the number of transactions dipped to 216, an 80 percent contraction compared to April 2019, when a total of 1,057 property sale contracts were deposited in the nation’s Land Registry offices.
With sales in Famagusta down by 90 percent, while both Larnaca and Limassol saw a decline of 83 percent. In Nicosia, sales fell by 78 percent,
According to George Mouskides, chairman of the Cyprus Property Owners Association, “The process of registering a sale, which is normally quite rapid, became protracted [due to work from home and social distancing protocols]. Similarly, banks were working at a very slow speed, and many processes were delayed with people working at home. All of this drastically reduced the number of sales.”
The most dramatic decline in the industry was caused due to the work from home protocol as a vast majority of property professionals could not visit the sites of places on sale.
Irrespective of such devastating effects on the property market, sales are expected to recover.
“But overall demand was not affected, and should come back,” Mouskides says. “Foreign sales will also increase once it becomes easier for foreigners to arrive in Cyprus again. There is still considerable interest in the Cypriot Investment programme (Invest for Passport scheme).”
In a Financial Mirror op-ed discussing the matter, Cypriot property specialist Panos Danos, of Danos Associates, wrote that regardless of the island’s current extreme volatility, there remain considerable opportunities within the Cyprus property market if a long-term vision is adopted. He expects the island-nation’s property market to experience a healthy recovery in 2021.
Many experts have observed and explained certain gaping holes within the property market in Cyprus pointing towards the potential danger of creating another housing crisis, much prior to the onset of the pandemic.
In the face of the country’s exposure to foreign investors, a bubble was being created in the Cypriot economy on the back of the country’s “citizenship for investment” protocol.
In 2018, almost half of the 9,242 property sales on the island were to foreigners, with 2,939 to non-EU nationals.
On a more critical outlook, experts believe that these non-EU foreign investors are in reality, after the European passport. Nobel Laureate economist Christopher Pissarides said “I’m in London now, and I bump into people who tell me they live in the UK but have a Cypriot passport. When I ask them how they got the passport, they say ‘Oh, I bought a house in Limassol’.”
In conclusion, the real estate market in Cyprus is expected to recover from the deep-seated effects of the pandemic, however- the more important question remains- as whose cost?
Более подробную информацию о налогах и сборах при покупке недвижимости на Кипре вы можете получить на нашей странице.
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