Trends and challenges in the property sector, as seen by top industry professionals

Prominent Cypriot professionals of the real estate sector discussed the new trends for 2023, along with the industry’s expectations and challenges during a round-table discussion at the 17th Real Estate & Construction Conference and Exhibition in Nicosia.

Kikis Athinodorou, MRICS, Director of Kikis Athinodorou & Associates LLC, stressed how important it was for property buyers, particularly young people, to ensure they truly can afford what they are buying and don’t let their banks down. Describing a housing loan as a long-term debt, Athinodorou said things were made harder by the high taxation on real estate transactions. So, he said, it was important to understand that buying property was a long-term commitment and that “we cannot let down the bank”, as at the end of the day, it is the consumer’s responsibility to pay the costs.

Nikolas Michalias, Founder & CEO at M. Residence, said that it was impossible to make any predictions, given the current climate. Things have changed a lot this year, he said, especially for young buyers what with the interest rate hikes. As for property prices, Michalias said: “In five years’ time we will be looking back at today’s prices, which seem high, and they will seem like a great bargain.” He also said that he sees investors opting more for build-to-rent projects in the future.

Markos Christodoulou, Partner/ Sales Director at Quality Group, was asked to comment on the significant growth the town of Larnaca has seen lately. He said the time has come for the town to shine, especially after the removal of the oil refineries. “This created a stretch of beach that spans over 2.5km and is up for grabs to develop,” he said, adding that Larnaca was currently transforming from an industrial town to a tourist resort.

George Chrysochos, Director at Cyfield Group, said that October 2022 saw the highest number of applications submitted to the Department of Land and Surveys in Cyprus’ history. He described Cyprus as a “safe oasis”, which was what attracted foreign companies to open headquarters on the island. He said the majority of real estate sales in Cyprus were to Russians. He did mention that high rent prices, particularly in Nicosia and Limassol, were a challenge for the real estate sector; however, he believes Cyprus will remain robust.

Kyriacos Costa Talattinis, member of the Property Valuers Association, said that he expected to see the local real estate sector mature, with investors seeking more specific products. So he underlined how important it was for prospective investors to fully study and evaluate any investments they want to make.

The panel discussion was coordinated by Kritonas Onisiforou, Head of Sales at the conference’s sponsor, Altia.

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