Bull real estate will deliver to your door!
Curator of the Safa Group Board of Directors Ali Özmen Safa has announced an alarming forecast for the construction and real estate industry of the KCTR. He claims that the industry will face a serious crisis before the end of this year, which will entail a decline in prices and sales. Some specific locations will be particularly affected. The crisis will affect Cyprus. Some companies will experience major shocks. Its effects are expected to last at least 12 months.
Assertions by Safa
According to Safa's claims, 95% of homes currently on sale are not yet completed. Payments are coming from the buyer and only then can a plan be made to complete the construction. So the homes are not finished, they are financed by the buyer. There are different types''investors. Those belonging to the first category are people who buyreal estate for future use. They pay the price in full by using the property themselves.
There are also investors... They buyreal estate and put up a deposit, following a two-year plan. They are calculating and plan to resell the real estate at a profit. But they don't have the intentions, ability or money to see the process through. They buy to increase the price and sell. Until recently there were no such speculators in Cyprus. Buyers fell into the first two categories. Consider Esentepe as an example.
The imbalance on Esentepe
But if you look at today, 65-70% of the buyers on Esentepe are speculators. They will cause an imbalance on Esentepe, as I have argued. But why will this happen? While 10-15,000 homes were completed on Esentepe a year ago, there are at least another 15,000 homes in the pipeline. Work is underway on 40 sites. Of those, 15 are new companies that have not done proper market research. This was also the case in 2009. In 2006, Ali Ozmen Safa said it was a completed project. However, new facilities were still built between 2006 and 2009. But they questioned the results. Just as cancer is dangerous, speculators have done a lot of damage to the industry. They have created''Artificial demand, and now artificially increase supply.
S Safa Ali Özmen Safa
Forecasts.Ali Özmen Safa is excellent at predicting crises. He was educated at one of the best schools in London, the University of London, specializing in finance. Safa has sold more than 4,000 apartments. He created a successful company which was publicly listed on the UK stock exchange. He gave lectures on economic trends and investments at the invitation of various institutions, including the London School of Economics. Safa warned of the end of the upward trend in real estate on KKTR on television well before the crisis in 2008.
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