Cyprus Mail
Business Cyprus Business News

Real estate sector shows decline — KPMG report

This year saw significant decline in real estate and construction, as the pandemic outbreak interrupted four years of steady growth, a new report from KPMG shows.
In the first half of 2020, there was a 41 per cent reduction y-o-y in the number of Contracts of Sale (CoS) submitted to the Department of Lands and Surveys, compared with the first half of 2019, according to the annual real estate report by the KPMG.
It is also significant that sentiment is down.  Real estate professionals surveyed by KPMG  forecast a sharpt decline in the retail sector — transactions are expected to drop off by 60 per cent this year.  Another 20 per cent predict that office, land, and warehouse/logistics transaction volume in the market will significantly decrease. Residential real estate was voted a 31 per cent drop, while more than, half (56 per cent) said it will remain stable.
Sentiment suggests that foreign investors will be the most important factor which will affect the real estate sector performance in the next 12 months.
The sale of real estate declined up to 53 per cent, although the amount varies according to district.
districts. June saw a 10 per cent overall reduction this year, in comparison with the same month in the previous year.
Restrictive measures affected foreign investors, who accounted for the 43 per cent of total sales last year, and in 2020 these sales dropped off by  44 per cent. This year also saw a drop of 39 per cent in sales from nationals.
The pandemic induced slowdown on the number of building permits issued in April, resulting in an overall y-o-y decrease in both volume and value of building permits of 18 per cent and 53 per cent respectively, according to KPMG.
Residential buildings, which accounted for 72 per cent of building permits during the first four-month period, recorded a 19 per cent decrease in their number while showing a 13 per cent decrease in total value.
Despite the lower annual growth, real estate contributed €3,24 billion to the Cypriot Economy in 2019. There was a 13 per cent increase on the volume of permits in that year as 7.218 permits were issued compared to 6.408 in 2018.


Related posts

Trump to shut off TikTok, WeChat to new US users on Sunday

Reuters News Service

UK shoppers spend more online as demand recovers

Reuters News Service

Cyprus sees prices plunge in August as consumer behaviour changes

Andrew Rosenbaum

Cyprus shows progress in IT, but still ‘one step behind’ – IT experts

Andrew Rosenbaum

Libya’s Haftar says he will lift oil blockade

Reuters News Service

Ruble steady as Russian central bank holds key rate at 4.25%

Reuters News Service