The two main current risk factors for the Cyprus real estate market are the negative impact of the protracted Coronavirus COVID-19 pandemic and the cancellation of the Citizenship for Investment (KEP) program, Central Bank analysts say.

According to the regulator, in the second quarter of the year the growth in real estate prices on the island continued. Thus, in Limassol it was +1.3% compared to the first quarter, in Nicosia – +1.1%, in Paphos – +0.7%, in Larnaca – +0.1%. The situation remained unchanged only in Famagusta. Analysts comment on this situation as follows: a slight increase in housing prices in the reporting period may be due to demand from local buyers who returned to the real estate market after the first pandemic shock – both for housing and investment.

If the coronavirus pandemic is prolonged, it will continue to have a negative impact on real estate prices, predicted by specialists of the Cyprus Central Bank, adding that for now the situation remains unclear, as well as the scale of the pandemic.

Analysts believe that another factor that will have a negative impact on price dynamics is the termination of the Cyprus Investment Program (KEP) forever from November 1, 2020.