True estate stakeholders are concerned around the immediate prospects of the building sector and warn versus being duped by an upward craze in residence profits, as the war in Ukraine will harm the marketplace.
According to the information posted by the Land Registry Office environment, serious estate sales greater by 40.1% in the initially 4 months of 2022 in comparison to the identical interval past yr.
Even extra encouraging, in contrast to pre-pandemic stages in 2019, an increase of 15.3% was recorded from January to April.
Nonetheless, the info indicate a slowdown in the property current market. The selection of income documents submitted greater by 13% in April, when compared with a 33% increase in March, 63% in February and 67% in January.
Bank of Cyprus Economic Analysis director Ioannis Tirkides told news web page Stockwatch: “We are now witnessing an upward cycle introduced in April 2020 because of to a supportive framework of fiscal actions to deal with the pandemic and very low-interest rates.”
The federal government had extended an fascination charge subsidy plan for housing and company loans right until the conclude of 2021 and lifted the ceiling for eligible financial loans. The plan, on the other hand, has occur to an finish.
The scheme delivered for the subsidy of desire of 1.5% for 4 many years.
Tirkides claimed the upward craze right until April is probably to arrive to an end, due to the hike in the rates of uncooked components, as a result of the war in Ukraine.
“But we can not attract this conclusion based on the facts so much.”
The head of the section of Delfi Analytics at Delfi Partners & Firm, Zafeiria Stathogiannakou, said the Cypriot actual estate market is transferring at a pre-disaster speed.
“This upward pattern proves the resilience of the Cypriot real estate sector even with the socio-financial consequences of the pandemic and the extended geopolitical stress in Ukraine,” mentioned Stathogiannakou.
She, on the other hand, pointed out that because of to Cyprus’ near relations with Russia and Ukraine for tourism and expense, there is a risk the existing favourable trend in the authentic estate current market will overturn.
“The duration of the hostilities will be the essential the two on a humanitarian and financial degree.”