The real estate sector in Cyprus is currently waiting to see the potential impact of US President Donald Trump’s trade war with China, Europe, and many other regions.
The ripple effects of this so-called trade war could have far-reaching consequences, and the property market is no exception.
Cautious optimism or warning signs?
Market insiders suggest that if the economic conflict continues, the effects will gradually begin to be reflected in the property market.
The most immediate effects would likely include a freeze on new investments and downward pressure on prices.
However, some experts are not entirely pessimistic. They point out that, compared to more volatile investments such as stocks and bonds, real estate remains a relatively low-risk long-term investment.
Property market performed strongly in first quarter
Cyprus real estate sales saw a 19% year-on-year increase in the first quarter of 2025 recording the highest number of sales in the first quarter (4,137) since 2008.
According to the Department of Lands and Surveys, March 2025 recorded 1,491 property transactions, up from 1,257 in March 2024.
Real effects on the property market after September
Stelios Gavriel, President of the Federation of Building Contractors Associations (OSEOK), told StockWatch that it is still too early to assess the full impact on the property sector. He believes the true effects will become apparent only if the tariff war continues beyond the summer.
“If tariffs rise on a wide range of goods globally, we could see inflation rise again, which might put psychological pressure on the property market,” he explained. “This would manifest as a pause in new investments and a general cooling of interest from foreign buyers.”
So far, no price increases have been seen in construction materials as a direct result of tariffs. Still, Gavriel expressed concern about imports from China and other non-EU countries, noting the uncertainty around how these nations might respond.
Uncertainty is the enemy of investment
George Mouskides, Vice President of the Property Owners Association and CEO of FOX Estate, echoed a mixed sentiment. Speaking to StockWatch, he acknowledged that the trade war will inevitably affect the property market – though not necessarily in a negative way.
“Real estate is considered a low-risk investment,” he said. “If people become wary of putting money into traditional markets like stocks and bonds, they might turn to property instead, which currently offers more security.”
That said, he also warned that uncertainty could cause buyers to hesitate, leading to a drop in transactions and potentially discouraging international firms from relocating their investment operations to Cyprus.
“In weighing these opposing forces, I’d say that uncertainty generally works against investment, including in property,” Mouskides concluded. “We’ll have to wait and see how this new economic war unfolds and what effect it will ultimately have on real estate sales.”
(Translated and summarised from the Greek article in Stockwatch)
