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.