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%
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
• 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%
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%
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
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
Vacation home purchase
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
Vacation home purchase
Store rent
Office rent Office rent
Plan for:
Real Estate
House purchase
Apartment purchase
Apartment rent
Vacation home purchase
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%
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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 real estate agent
Via Internet
From acquaintances / friends / relatives
I would research on my own
From newspapers / magazines
From billboards and street posters
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%
ON AVERAGETHEY WOULD CONTACT2.7 AGENTS
4%
14%
39%
30%
13%
2%
14%
38%
32%
14%
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 real estate agent
Via Internet
From acquaintances / friends / relatives
I would research on my own
From newspapers / magazines
From billboards and street posters
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%
ON AVERAGETHEY WOULD CONTACT2.7 AGENTS
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
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• 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.
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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)
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• 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)
Τ: 22501887 E: [email protected]
Natasa Gavriel Business Center 219(Limassol & Paphos)
Τ: 25502398 E: [email protected]
Charis Michael Business Center 219(Limassol & Paphos)
Τ: 25502463 E: [email protected]
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
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