Since the day of the outbreak of the pandemic (covid 19) in Cyprus, there have been many changes, as well as it has negatively affected the real estate sector to a large extent.
This situation we are living in, which is a fact of force majeure, has marked reductions in the sales of real estate, but not reductions in their prices, without disputing the fact that there were some small discounts to facilitate and arrangements of transactions. The market at this time is in a stage of transformation resulting in new needs in the market, but at the same time the current situation is being compared with the crisis that passed for many years the real estate after 2008.
According to the recent financial bulletin of the Central Bank, it is divided in terms of the recovery of the real estate sector in the next period, as well as before the start of the pandemic the market showed signs of slowing down. Examining the data of the Land Registry until the first half of 2020, there is a decrease in sales documents of -41% compared to the first half of 2019.
Real estate professionals also expect reductions in the prices of all types of real estate. Τaking into consideration the meteoric economic situation, the dramatic rise in unemployment, the potential increase in supply from new projects, the sale or repayment of problem loans, in connection with the increased liquidity of banks, it is likely to create a pressure to reduce prices.
For that reason, a strategic approach is needed, in which the challenges and the situation of the sector at this stage will be recorded, in order to make a plan to ferment the future of the industry, through a cooperation of both public and private sector.