How foreign real estate buyers shape the Cyprus property market
The property market in Cyprus has shown good momentum in recent years. There is a growing demand for residential housing, and its value is increasing. Foreign real estate buyers are interested in the local supply. Notably, representatives of specific age categories show the most significant activity.
Features of foreign buyers behaviour
Experts Danos and Associates came to some interesting conclusions when they analysed the behaviour of property buyers. It turns out that the main buyers are millennials and zoomers. The first group includes people born between 1980 and 2000. Zoomers are the generation born in the first decade of the 21st century. There are predictions that in the next two years, the proportion of millennials among property buyers in Cyprus will be around 70%. This trend is due to the behavioural characteristics of this group:
– millennials often work in finance and IT;
– they are among the most solvent consumers;
– these people are flexible in thinking and driven to succeed.
Analysts state this portrait corresponds to the buyers in the Cypriot market today. And their number will increase, especially among foreigners.
It is worth noting that the millennials have their own vision of how this or that should look and feel. And the property market is no exception. These people know what they want, and they make specific demands on sellers. One of the most important is the integration of modern technology in the sector. Buyers want to see the use of innovations such as virtual tours and 3D models of properties as early as the selection stage. millennials prefer online conversations to face-to-face meetings and expect the most personalised service possible.
Property market overview
The property sector in Cyprus is experiencing steady growth. In the first six months of 2024, the number of transactions increased by 8%. The most popular locations are Nicosia and Larnaca. Limassol and Paphos have seen a decline in activity.
According to analysts, the market is ready to meet the demands of millennials. At the same time, it faces several problems that are hampering its development. Among them:
1. The rise in construction costs has impacted the key cost of plant and equipment.
2. High interest rates will restrict the market in the coming years.
3. The sector needs a regulatory overhaul. This will accelerate the pace of construction and reduce the gap between supply and demand.
The Cypriot government is, for its part, making efforts to develop the sector. The country has programmes to attract foreign investment, which are already showing excellent results: the number of foreign buyers has increased significantly over the year. At the same time, such trends stimulate the growth of property prices, making properties less affordable for the local population.