Filenews 22 February 2021 - by Theano Thiopoulou
The country house market is one of the victims of the crown. Prices again this year will be relatively low in renting and selling compared to 2019. Already in 2020 the fall was great and the trend of falling prices seems to continue this year as long as the situation with the coronavirus pandemic does not clear up.
Incomes worldwide and not only in Cyprus, are declining, the investment and tourism flow has been halted, demand will be quite reduced and the expected attractive packages offered by hotels will act highly competitively. Panos Daneos, managing director of the real estate company Dane & Associates, is talking about a sharp, albeit temporary, price drop in Paphos, Larnaca, Paralimn and mountainous Limassol, where interested buyers from Germany, the United Kingdom, the Gulf countries, China and Russia in 2018 and 2019 were actively looking to buy real estate.
Mr. Dane continues that, for investors from non-EU countries, the possibility of obtaining citizenship in Cyprus was also an additional incentive. Program that stopped. The pandemic, the resulting economic recession and the end of the Cyprus Investment Programme, are pushing up demand and prices.
Due to the crown, the rental prices of beach houses in Famagusta province will be between €8 - €14 per sq.m from €10-€12 per sq.m in 2020 and €18-€22 per sq m in 2019, with the drop reaching 36.36%. In the province of Larnaca the rental prices of seaside houses are expected to be €6 to €10 per sq.m from €8 to €10 per sq.m in 2020 with prices remaining at the same levels. The difference is great if the comparison is made with 2019 when rental prices were between €15 and €20 per sq.m. In Limassol province the rental prices in cottages per square meter are projected to be €16 to €35 per sq.m from €20 to €40 which was in 2020 with the drop being 12.5 %. In Paphos province the rental prices of seaside houses are expected to be between €8 and €14 from €10 to €12 per sq m in 2020.The drop in rents for holiday homes in Paphos is estimated at 16.6%.
Coronavirus also affects the selling prices of holiday homes with levels in some cases having subsided in the 2015 season. The comparison is made with 2020 where prices had fallen sharply due to the effects of coronavirus. According to estimates by the office Dane and Associates the sales prices per square meter for coastal houses in Famagusta province are projected to be €2,000 to €2,700 from €2,300 to €2,800 in 2020 and the drop reaches 13%. In Larnaca province, sales prices for holiday homes are expected to be around the same level as in 2020. Specifically it is projected to be €2,000 to €2,700 per sq m compared to €2,200 -€2,700 in 2020. In Limassol province the selling prices of holiday homes are projected to be between €3,000 and €4,500 from €3,500 to €4,000 in 2020. In Paphos province the estimates for the sale prices of holiday homes are between €2,500 to €3,600 from €2,800 and €3,000 per sq m in 2020.
