Real Estate Market Outlook
The first edition of Deloitte’s Real Estate Market Report (June 2016) provides an outline of the main economic factors affecting the Cyprus real estate market and an outlook of the performance of the market in terms of supply, demand, capital and rental values and external market influences.
The previous year has concluded with the first signs of stability in the real estate market of Cyprus in line with the forecasted economic growth. Transaction activity is gaining ground for the second consecutive year while the rate of decrease of property values is slowing down. In addition, the market appears to be regaining foreign investor interest in line with the Cyprus Citizenship and Permanent Residency Schemes and the tax incentives introduced by the government. Nonetheless, the Cyprus real estate market continues to perform at very low levels compared to the pre-recession period and the construction sector remains weak. The area of non-performing loans remains a key challenge to be addressed by the banking institutions and will be critical to the recovery of both the economy and the real estate sector.