'Warning of real estate uncertainty in the Middle East.'

'states that the negative impact of the war in Gaza was clearly felt in the early stages of the conflict, but then the situation stabilized. "The current stage sees sustained investment activity by Israeli investors in the real estate sector; however, if the crisis in the region continues, the real estate market will be negatively impacted," Dionysiou said. "Israelis make up a significant proportion of foreign buyers. "

The Central Bank of Cyprus (CBC) does not seem to share the Finance Ministry's view, noting mild optimism for the sector in its report. According to the CBC, Cypriot companies with Israeli interests, established on the island thanks to incentives to attract international companies, have invested in''real estate and do not plan to conduct mass real estate sales.

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Due to the security and political stability of Cyprus, the Central Bank does not rule out continued demand for real estate from Israeli citizens and companies. It is also reported that Israelis are conducting research activities in both the commercial and residential sectors, with a temporary shift to rental properties.

The ECB warned last week that the real estate sector in the eurozone is suffering from accumulating losses and some will have trouble servicing their debts, which have risen to levels higher than before the 2008 financial crisis. The losses reported by the ECB are due to significantly higher financing costs, lower''commercial real estate values, declining rental income and growing concerns about the energy efficiency of buildings. However, the latest sales data from the Land Registry for the first 10 months of 2023 reflects the resilience of the real estate sector, although some participants have expressed concern over an overheated market. According to the data, the first ten months was the best period for the industry since 2008, when 13,261 units were sold. The 10-month sales documents totaled 12,825 units, up from 10,781 last year, an increase of 36.2%.