One of the big questions, for both buyers and builders, is how the real estate market will move and what we can expect in the coming years, drawing conclusions from the statistical data that is announced.
In the market insight report for the first half of 2024, published by Danos and Associates, it is noted that Millennials (Gen Y) and Gen Z will represent 70% of the real estate market by 2025. Dubbed “Millennials” or “Generation Y,” they are the most qualified generation ever to enter the professional arena. They are the high-tech youth – born from 1982 onwards – who, with their insight, enthusiasm, and realism, are making their mark on what we call a career.
Born between 1996 and 2012, members of Generation Z are shaping their own profile: social, political, and economic. And they have significant differences from previous generations. Their problems and expectations are at the centre of tomorrow’s political agenda.
In the report’s section on new data and trends, it is noted that “technology has become a very important part of the property buying process, demanding the need for the highest standards in 2D/3D virtual photos, videos, and virtual tours. Buyers now prefer virtual tours, zoom meetings for more information and clarifications, personalised videos that can be shared with family and friends, searching for services and favourite locations via Google Maps/Google Earth, etc.”
The report states that “over the next two years, the Cypriot real estate market is expected to experience moderate growth as high interest rates stabilise demand. Continuing foreign investment, driven by regional geopolitical tensions, will play a significant role, even though the market will face challenges from rising construction costs and regulatory changes.
The Cyprus residency programme, known as the ‘golden visa,’ has been a significant driving force for this foreign investment. Meanwhile, rising construction costs have further impacted new developments, contributing to upward pressure on property prices. This dynamic presents distinct implications for various stakeholders. Local buyers find homeownership more difficult due to high property prices and increased mortgage rates.
In contrast, Cyprus remains an attractive destination for foreign investors, offering promising investment returns.”
The research by Danos and Associates notes that “the provision of many and significant services and amenities has now become essential. A more holistic approach to home search is required.”
“Experienced buyers/investors are very demanding in their search, focusing on detail, preferring properties that are environmentally friendly and close to communities that commit to using sustainable practices and are family and pet-friendly.”
It is also noted that “the ever-increasing number of high-tech and fintech companies relocating to Cyprus while boosting the economy, has made things difficult for locals looking to rent an apartment. In contrast, for builders, high demand, especially in areas such as Limassol, Paphos, and Larnaca, presents profitable opportunities despite the challenge of rising construction costs.
It won’t all be rosy
The Cyprus real estate market is expected to continue its dynamic course in the coming years, but it won’t all be rosy, with the need for strategic planning being critical to addressing the changes and challenges ahead,” says Kyriacos Kiliaris, Chief Marketing Officer of Danos.
At the same time, he points out that “EU regulatory changes will push the construction sector to place greater emphasis on sustainable and eco-friendly properties. In conclusion, he notes, “real estate stakeholders on the island need to recognise the signs and collaborate to chart a strategic plan, rather than waiting until it’s too late.”
(Picture by George Christophorou)
