Real estate measures to counter the impact of Covid-19 in Cyprus

Real estate measures to counter the impact of Covid-19 in Cyprus

When it comes to the Cypriot real estate, most local experts they do  reassure the public opinion that the real estate market will rebound by  2021.  

However, without the provision of property measures this scenario  does not seems realistic.

To date, the only real-estate oriented  measure that has been launched by the government is the 4-year subsidy  of the interest rate (up to 1.5%) for housing loans with a loan value of  up to €300,000. 

To this end, the fact that this measure is applied only  for owner occupancy and up to the threshold of €300,000 spark concerns  as to its potential effectiveness. 

Moreover, for boosting the confidence  in an industry a combination of measures needs to be launched. 

For this  purpose, we propose five measures that if launched by the government  within 2020, they will provide grounds for the rebound of the real  estate market by 2021 – 2022.

To this end, it is important to recall that back in 2013 crisis the  government has introduced its previous “boosting real estate measures”  very late, by July 2015 and September 2016. 

However, despite that delay,  it became immediately apparent how positively fast Cyprus real estate  market responded to those 2015 & 2016 real estate reforms. 

The  complications of Coronavirus in our real estate market should not be  underestimated and therefore collective real estate measures need to be  launched immediately 

by the government to make sure that this time we  don’t waste again another 2 – 3 years of recession and of low economic  performance.