Michalis Zavos: Five measures that would reduce prices in the real estate sector
10:46 - 23 January 2024
The CEO of D. Zavos Group, Michalis D. Zavos suggests five measures he believes the government should take towards solving the issue of rapid increases in real estate prices.
In an interview with InBusinessNews, in the context of "IN Business Forecasting 2024," Zavos notes that 2024 is expected to be a positive for the real estate sector, while also referring to the problems plaguing it, the increase of costs due to shortages in workers and also of construction materials.
Zavos predicts a volatile economic environment in 2024, while also pointing out, and characterising as positive, the fact that the real estate sector remains the most stable and reliable sector for any investor.
“Unfortunately,” as he points out, “the Russian market has been lost, which has affected purchasing power, both in real estate and tourism. Therefore, it is necessary for companies active in these two sectors to adapt to the new trends and offer corresponding products and services."
Referring to the plans of the D. Zavos Group for 2024, he notes that it will adjust to and harmonise with the needs of the market.
How do you see the economic environment shaping up in 2024, in light of inflationary pressures, high interest rates and unpredictable ever-changing geopolitical developments?
The economic environment in 2024 is predicted to be unstable. The war in Russia and Ukraine, but also the latest events with the war in Israel, have undoubtedly upset the economies of many countries, including our country, and have created unpredictable inflationary trends that involve risks within the global economy.
Increased interest rates will, without any doubt, affect several Cypriot businesses with the risk that many of them will face a survival problem.
The positive is that the real estate sector remains the most stable and the most reliable sector for any investor.
A positive year for real estate in 2024
What do you think will be the course of the sector in which you operate in 2024 and what are the biggest problems it faces?
There is no doubt that inflation and inflationary trends in general favour real estate, the value of which multiplies against the value of cash.
2024 is expected to be a positive year for the real estate and tourism sectors, which are expected to move upwards with a different clientele, a fact to which many businesses will have to adapt accordingly.
Unfortunately, the Russian market has been lost, which has affected purchasing power, both in real estate and tourism. Therefore, it is necessary for companies operating in these two sectors to adapt to new trends and offer corresponding products and services.
The biggest problems plaguing our sector are the increase in labour costs, due to a shortage of workers, but also of construction materials, which we are required to cover in order to remain competitive.
Five measures that will strengthen the sector
If you could ask the government to take specific measures or formulate policies to support/enhance your sector, what would they be?
The rapid increase in property prices could be solved if the government took several measures, such as:
- Increasing in building factors inside and outside cities under conditions. This would reduce the cost per buildable metre, i.e. reducing the cost of land.
- Abolishing the minimum areas in apartments so that they become smaller and more economical.
- Providing incentives for the construction of worker housing and apartments so that they can be made available to workers and businesses benefit.
- Creating special areas where various projects benefit the Cypriot economy and the infrastructure of our country, such as e.g. technology parks, hospitals, schools, etc.
- The inclusion of agricultural areas in residential areas, close to urban centers with conditions, i.e. obligation of the owner to develop affordable housing within a specific time frame.
The Group's new projects in Cyprus and Greece
What are your organisation's plans/strategy for 2024? Should we expect new developments and your further consolidation in the market?
In 2024 our Group will adjust to and harmonise with the needs of the market.
Specifically, our Group is moving forward with three new projects that will feature affordable homes and apartments, two in Limassol and one in Larnaca.
In total, we will erect over 300 affordable apartments priced between €180,000-€280,000. For this purpose, estates have been selected that are 15-20 minutes away from urban areas and have comfortable parking spaces, green areas, swimming pools, a gym and recreational areas.
Oasis Limassol Park, Oasis Limassol Sun and Oasis Oroklini Park projects feature the above and aspire to offer affordable housing at affordable prices.
We are also moving forward with the final phase of the Aqua Park project with 61 apartments, as well as the Park Horizon, Bel Air Mansions, La Maison projects in Limassol and Oroklini Villas in Oroklini, Larnaca.
A big wager for our Group for 2024 is our activity in Greece.
Our Group is beginning its operations in Greece, with new offices in the heart of Athens, in Kolonaki, and proceeding with the development of 4 new projects, Oasis Park Athens in the Elliniko area, Harmony Residences in Kallithea, Sunset Court in Keramikos and Sirena Court in Piraeus.
Our activity in Greece marks a new path that is going to put our Group on the map of Greece with new innovative projects.