When it comes to property prices in Cyprus Limassol is overpriced and Larnaca is under-priced, according to a survey carried out by Danos International Property Consultants & Valuers.
The “Real Estate Market Sentiment in Cyprus” survey was carried out with the use of a questionnaire and a sample of 150 of the sector’s professionals – real estate agents, valuers, developers and investors. It was conducted during the last three months of 2019.
A general conclusion is that property prices are expected to come under pressured because of a recorded increase in new housing units. As well as from the plethora of real estate that will be put on the market by funds and asset management companies that have purchased portfolios of bad loans from the island’s banks.
At the same time, 92% of those questioned said coastal Limassol is overpriced, and 8% feel the same about Nicosia – the capital. In addition, 44% said coastal Larnaca is a bargain market, 16% have the same feeling for Famagusta and Nicosia districts and another 24% believe Paphos is a bargain market.
Danos & Associates believe Larnaca’s real estate market is of particular interest, especially after this week’s signing of the Port and Marina development contract, along with the recent relocation of the oil reservoirs. The view is that the town now has a great potential for further development.
As for the most developed districts in 2020, 40% expect Larnaca to be the one, 32% see Limassol, 20% see Nicosia and 4% see Famagusta and Paphos.
As for the nationality of foreign buyers, 40% are from Russia, 20% from China, 16% from Europe, 12% from the Middle East – North Africa, 8% from Asia and 3% from America.
As for the preference per type of property, 70% went for a home, 12% for land, 12% for something else, 4% for an office and 1% for office and industrial property. Danos also said that statistical data shows that the real estate market, and particularly that of housing, is affected by the country’s overall economic performance.
And that interest in the purchase of a house is still high, mainly from the domestic market without that from foreign markets, particularly from Russia, declining.
NATIONALITY OF FOREIGN BUYERS
Middle East North Africa 12%
Source: Danos and Associates