Investment trends revealed: Real estate leads, financial literacy lags

A recent study by Freedom24 has shed light on the investment preferences of Cypriots, revealing a strong inclination towards real estate and stocks, with a notable portion of the population refraining from using any investment instruments at all.

The survey, which targeted residents of Cyprus, explored their preferences across various investment products, including real estate, Cyprus Stock Exchange (CSE) stocks, cryptocurrencies, global market stocks, foreign currencies and mutual funds.

In more detail, the study found that half of the respondents do not use any investment products, highlighting a significant untapped market for financial investment services in Cyprus.

Moreover, real estate emerged as the most popular investment choice, with 35 per cent of participants having invested in property.

Additionally, 27 per cent of those surveyed maintain investment portfolios in stocks, with 21 per cent invested in CSE stocks and 6 per cent in global market stocks.

Interestingly, cryptocurrencies, which attract 10 per cent of investors, are a more common investment than foreign currencies, which are chosen by 5 per cent of respondents.

The study also highlighted certain demographic trends among those who are active investors. Users of investment products were more likely to be men, middle-aged (45 to 64 years old) and possess higher education qualifications.

Head of Representative Office in Greece at Freedom24, George Karageorgos, noted that “the enduring popularity of real estate shows a strong preference for tangible assets”. “Additionally, the rising interest in cryptocurrencies reflects a shift towards modern digital assets and their growing acceptance,” he added.

Karageorgos also pointed out that “finding that half of the target audience does not use any investment products indicates a lack of awareness and financial literacy”. “I believe that financial education could give more Cypriots an opportunity to explore diverse investment instruments,” he explained.

“In Freedom24 we’ve recently launched an online academy for our platform users,” he added. “Courses, developed by professional analysts and investment experts will be useful for newcomers and anyone interested in investment,” he concluded.

In terms of the methodology, it should be noted that the study was conducted through a series of interviews, with 505 valid responses processed for data analysis. The results were weighted by age and gender to account for minor deviations from the target population. Finally, the survey focused on individuals aged 25 and above, residing in urban areas of Cyprus.