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1

real estate & construction

Sectoral Survey - Q1 2019

2

{08} Purchase of propertyin the next 12 months

{04}

{09} Sale of propertyin the next 12 months

{12} Property purchase{10} Opinion on property prices

{06}

Industry Economic Overview

Executive Summary

{10} Types of property they would invest in if they could afford it

{11} Interest in buying / renting property in the last 12 months

{11} Planning to buy / rent property in the next 12 months

{12} Property sale

{14} Renovation in the next12 months

Important info on Real Estate & Construction

Research Specifications

{16}

{17}

TABLE OFCONTENTS

δείκτες αγοράς

industryeconomic overview

4

CONSTRUCTION: EMPLOYMENT

INDUSTRY’S CYCLE AND CONTRIBUTION TO GDP PERCENTAGE CHANGE IN BUILDING PERMITS

Employment in the construction industry has increased significantly over the past few quarters. The construction sector has been on an upward trend reflecting the increased levels of activity.

During the period January - October 2018, 5,332 building permits were issued compared to 4,817 in the corresponding period of the previous year. The total value of these permits increased by 38.1% and the total area by 27.0%. Τhe number of dwelling units recorded an increase of 29.3%.

The Industry’s Share of GDP, during the last two years has shown a gradual recovery of the sector, which however remains at relatively low levels.

*

* *

Construction20,000

25,000

30,000

35,000

40,000

45,000

50,000

2010

q120

10q2

2010

q320

10q4

2011

q120

11q2

2011

q320

11q4

2012

q120

12q2

2012

q320

12q4

2013

q120

13q2

2013

q320

13q4

2014

q120

14q2

2014

q320

14q4

2015

q120

15q2

2015

q320

15q4

2016

q120

16q2

2016

q320

16q4

2017

q120

17q2

2017

q320

17q4

2018

q120

18q2

2018

q3

TH

OU

SAN

DS

OF

WO

RK

ER

S

-30%

-20%

-10%

0%

10%

20%

30%

0%

2%

4%

6%

8%

10%

12%

14%

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

% G

RO

WT

H R

AT

E

% O

F G

DP

Construction (% share of GDP) Construction % growth rate (Y-o-Y) Building Permits (area m2)

-50%

-30%

-10%

10%

30%

50%

70%

2012

M06

2012

M08

2012

M10

2012

M12

2013

M02

2013

M04

2013

M06

2013

M08

2013

M10

2013

M12

2014

M02

2014

M04

2014

M06

2014

M08

2014

M10

2014

M12

2015

M02

2015

M04

2015

M06

2015

M08

2015

M10

2015

M12

2016

M02

2016

M04

2016

M06

2016

M08

2016

M10

2016

M12

2017

M02

2017

M04

2017

M06

2017

M08

2017

M10

2017

M12

2018

M02

2018

M04

2018

M06

2018

M08

2018

M10

INDUSTRY ECONOMIC OVERVIEW

5

Real Estate

REAL ESTATE: EMPLOYMENT INDUSTRY’S CYCLE AND CONTRIBUTION TO GDP

Employment in the real estate industry has increased significantly over the past few quarters. The Industry’s Share of GDP is stable during the last two years showing a gradual recoveryof the sector.

* *

% G

RO

WT

H R

AT

E

% O

F G

DP

-4%

-2%

0%

2%

4%

6%

8%

10%

0%

2%

4%

6%

8%

10%

12%

14%

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

Real Estate (% share of GDP) Real Estate % growth rate (Y-o-Y)

0500

1,0001,5002,0002,5003,0003,5004,000

2010

Q1

2010

Q2

2010

Q3

2010

Q4

2011

Q1

2011

Q2

2011

Q3

2011

Q4

2012

Q1

2012

Q2

2012

Q3

2012

Q4

2013

Q1

2013

Q2

2013

Q3

2013

Q4

2014

Q1

2014

Q2

2014

Q3

2014

Q4

2015

Q1

2015

Q2

2015

Q3

2015

Q4

2016

Q1

2016

Q2

2016

Q3

2016

Q4

2017

Q1

2017

Q2

2017

Q3

2017

Q4

2018

Q1

2018

Q2

2018

Q3

TH

OU

SAN

DS

OF

WO

RK

ER

S

6According to the respondents the outlook for prices on real estate will rise, compared to the previous survey. Most respondents believe that the upcoming year would be a good time to invest in real estate, particularly for those looking for a permanent residence.

The internet and real estate agents continue to be the primary search methods for either purchasing or selling any type of real estate property.

Renovation continues not to be a major priority for respondents, however, amongst those who consider it a priority, there is an increase in the large scale renovations carried out.

EXECUTIVE SUMMARY

real estate& construction

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• Compared to the previous survey, there is a significant downward trend observed in terms of respondents’ belief that 2019 would be a good time to buy real estate.

• 4 out of 10 respondents consider the next 12 months to be a good period for purchasing a house or an apartment, slightly less for land and more than 1 in 5 for a vacation home.

Purchase of property in the next 12 monthsWhether they believe that the next 12 months is a good time or bad time for...

Good time Bad time DK/NA

41% 42% 23% 39%

55% 53% 74% 57%

4% 5% 3% 5%

2018W12017

W22017

2018W12017

W22017

2018W12017

W22017

2018W12017

W22017

APARTMENT PURCHASE

HOUSEPURCHASE

VACATIONHOME

PURCHASE

LANDPURCHASE

57% 59%41%

56% 58% 42% 34%44%

23%

48% 53% 39%

Good time Good time Good time Good time

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• Compared to the previous survey, a slightly more hopeful outlook for 2019 is observed towards respondents’ intent to sell real estate.

• Despite this, more than 1 out of 2 respondents consider the next 12 months as a bad period for selling real estate properties.

Sale of property in the next 12 monthsWhether they believe that the next 12 months is a good time or bad time for...

43% 41% 37%

53% 55% 58%

4% 5% 5%

2018W12017

W22017

2018W12017

W22017

2018W12017

W22017

25%39% 43%

22%37% 41%

22%34% 37%

40%

56%

4%

2018W12017

W22017

24%37% 40%

APARTMENT SALE

HOUSESALE

VACATIONHOMESALE

LANDSALE

Good time Good time Good time Good time

Good time Bad time DK/NA

10

4%

65%

18%

14%

House as a primary residence

Land

Apartment as a primary residence

Vacation home

Retail store / shop

Office

41%

28%

23%

9%

8%

7%

5%

Property abroad

2018W12017

W22017

22% 11% 18%

54% 73% 65%

Assessment for REAL ESTATE PRICESin the next 12 months

4%

65%

18%

14%


Land


Vacation home

Retail store / shop

Office

41%

28%

23%

9%

8%

7%

5%

Property abroad

2018W12017

W22017

22% 11% 18%

54% 73% 65%


• Compared to the previous survey, there is a drop in terms of respondents’ belief that real estate prices will surge upwards. In addition, findings show that opinion on property prices remaining at the same level have a positive upward trend in comparison to a year ago.

• Respondents also pointed out that if they were to invest in real estate, household as permanent residence and land, would be their primary choices.

Opinion on property prices Types of property they would invest in if they could afford it(Predefined list of properties types)

Prices will increase

Prices will remainat the same level(Spontaneous)

Prices will decrease

DK/NA

4%

65%

18%

14%


Land


Vacation home

Retail store / shop

Office

41%

28%

23%

9%

8%

7%

5%

Property abroad

2018W12017

W22017

22% 11% 18%

54% 73% 65%


4%

65%

18%

14%


Land


Vacation home

Retail store / shop

Office

41%

28%

23%

9%

8%

7%

5%

Property abroad

2018W12017

W22017

22% 11% 18%

54% 73% 65%


Prices will increasePrices will remain at the same level

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Interest in buying / renting property in the last 12 months(Predefined list of property types)

As with the findings of the previous survey, it is observed that more than 1 out of 3 respondents expressed some interest towards real estate within the last year either in the form of purchasing or renting.

Interest for:

Real Estate

House purchase

Apartment rent

Apartment purchase

House rent

Vacation home purchase

Store rent

Office rent Office rent

Plan for:

Real Estate

House purchase

Apartment purchase

Apartment rent


Store rent

House rent

Vacation home rent

33%

12%

10%

10%

3%

2%

2%

1%

31%

11%

9%

8%

3%

2%

1%

1%1%Vacation home rent 1%

Planning to buy / rent property in the next 12 months(Predefined list of property types)

Interest for:

Real Estate

House purchase

Apartment rent

Apartment purchase

House rent


Store rent

Office rent Office rent

Plan for:

Real Estate

House purchase

Apartment purchase

Apartment rent


Store rent

House rent

Vacation home rent

33%

12%

10%

10%

3%

2%

2%

1%

31%

11%

9%

8%

3%

2%

1%

1%1%Vacation home rent 1%

12

Via Internet

Via real estate agent

I would research on my own

From acquaintances / friends / relatives

From newspapers / magazines

From billboards and street posters

Other way

Ways that they would use TO FIND PROPERTIES FOR SALE.


Via Internet





Via developer

Ways that they would use TO PROMOTE PROPERTIES FOR SALE.

Number of estate agents they believe they would contactTO FIND PROPERTIES FOR SALE.Those who would look for purchase via an agent (37%).

ON AVERAGETHEY WOULD CONTACT2.6 AGENTS

Number of estate agents they believe they would contactTO PROMOTE PROPERTIES FOR SALE.Those who would promote a sale via an agent (45%).

Via developer

40%

37%

34%

28%

18%

11%

10%

2%

45%

44%

26%

22%

17%

10%

8%


4%

14%

39%

30%

13%

2%

14%

38%

32%

14%

Via Internet






Other way

Ways that they would use TO FIND PROPERTIES FOR SALE.


Via Internet





Via developer

Ways that they would use TO PROMOTE PROPERTIES FOR SALE.

Number of estate agents they believe they would contactTO FIND PROPERTIES FOR SALE.Those who would look for purchase via an agent (37%).


Number of estate agents they believe they would contactTO PROMOTE PROPERTIES FOR SALE.Those who would promote a sale via an agent (45%).

Via developer

40%

37%

34%

28%

18%

11%

10%

2%

45%

44%

26%

22%

17%

10%

8%


4%

14%

39%

30%

13%

2%

14%

38%

32%

14%

Property purchase

Property sale

To 1 agent To 2 agents To 3 agents

To more than 3 agents DK/NA

13

• The internet and real estate agents are the primary sources respondents would turn to either purchase or sell a property.

• Respondents mention they would contact roughly 2.5 agents to either find a property to purchase or promote for sale.

14

Renovation in the next 12 months

Small - scale renovation Large - scale renovation

INTENT TORENOVATE

17%

Paintwork

Construction work (e.g. new flooring)

Change / repair of furniture

Change of plumbing

Home decoration

Replacement / refurbishment of cabinets and doors

Improve energy efficiency

Replacing electrical appliances

Electrical work

Garden / pool design / redesign

Installation of central heating

73%

25%

68%29%

26%

21%21%

19%15%

15%14%11%

5%

Extent of renovationBase: Those who mentioned that they intent to renovate (17%).

Base: Those who mentioned that they intend to renovate (17%).The renovation will include… (Predefined list)

2018W12017

W22017

17% 18% 17%

2018W12017

W22017

12% 14%25%

Extent of Renovation (Large)

15

• In the previous survey, less than 1 in 5 respondents, indicate their intention to renovate their current property within the next 12 months, with 7 out of 10 of the sample saying that paintwork is their primary choice of renovation.

• Interestingly, there is a significant rise in the intent to carry out a large - scale renovation on their property, in comparison to the previous survey.

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IMPORTANT INFO ON REAL ESTATE & CONSTRUCTION

Julia Timotheou Business Center 119(Nicosia, Larnaca & Famagusta)

Τ: 22501925 E: [email protected]

Elena Mavrou Business Center 119(Nicosia, Larnaca & Famagusta)


Natasa Gavriel Business Center 219(Limassol & Paphos)


Charis Michael Business Center 219(Limassol & Paphos)


Evan GavasGeneral Manager, Cypin

businessdivision

yourbusinessexpert

“It’s extremely important for any company to associate itself with a credible bank, like Hellenic Bank”

Contacts

The Business Division’s primary and perennial goal is to continuously provide upgraded and ever-improving qualitative services to large businesses, public companies and semi-governmental organisations that operate in Cyprus. A basic element in the achievement of this goal is a professional, friendly and effective customer service, as well as the provision of consulting services to address customers’ current and future needs.

The Business Division, in cooperation with other units and departments of the Group, provides integrated solutions which include the full range of products and services:

• Hire purchase loans • Factoring facilities • Letters of credit

• Trade finance • Letters of guarantee • Credit cards (company and personal)

• Overdraft accounts • Long-term loans • Short-term loans

17

RESEARCHSPECIFICATIONS

Not all figures add up to 100% due to rounding of percentage estimates and the possible exclusion of “No Answer” and “Don’t know” responses.

• Sample Size: 600 successful interviews.

• Sample Geographical Coverage: National, person in age group 18 - 70.

• Data Collection Period: November 2018.

• Sampling Methodology: Random Multistage Stratified.

• Data Collection Methodology: CATI.

• Comparisons are presented with March 2017 and November 2017 results.

• Assignment:

• Implementation:

DECEMBER 2018

https://businessblog.hellenicbank.com

www.hellenicbank.com @HellenicBankOfficial @HellenicBank Hellenic Bank Hellenic Bank8000 9999

1 real estate & construction...via real estate agent i would research on my own from...

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