- Home sales on the island for the year fell by 23%, prices – by 10-15%. Local developers are waiting for the revaluation of the entire real estate market and are counting on foreign buyers.
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The decline in sales in 2020 relative to 2019 was 23%, according to the survey. Analysts point out that the cost of real estate in Cyprus last year for the first time since 2016 showed negative quarterly dynamics – in the third quarter the average cost of 1 sq.m. local housing decreased compared to the previous period by 0.2%.
In new projects under construction, the dynamics were more pronounced. By the beginning of the fourth quarter of 2020, the average cost of 1 sq m in local new buildings was €1.15 thousand. A year earlier, the same indicator was €1.33 thousand. The decrease, therefore, was about 13.5%.
According to the Cyprus real estate agency Antaria Homes, for the year the cost of local new buildings fell by 15-20%. In the mid term there will be no price growth – the market was already overheated because of the “passport program”.
Now it has been stopped and this has affected the market rather quickly – developers are ready for a fair price reduction and already foresee a reassessment of the whole real estate market in the long term.
In the company Golden Brown Group noted that in addition to the official price reduction when buying property on the island you can also count on a discount from the developer.
Discount may be 15-30% of the value of the object, but it is not an official discount – the possibility of discount and its size are determined during the negotiations.
The MCA and LBDA survey noted an increase in new building permits – 9% more were issued in the third quarter of 2020 than in the same period in 2019. The average size of projected homes decreased from 526 m2 to 390 m2 during the year.
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