Sustainability of the Housing Market: Post-COVID-19 Effects on Housing Preferences in Cyprus

Abstract

After the announcement of the outbreak of the COVID-19 pandemic, people around the world had to adopt online education, working from home and social-distancing policies in an effort to stop the spread of COVID-19. The lockdowns and home isolation brought to the surface the current limitations of the existing housing stock as people needed to re-organize their home space to host various daytime functionalities. Therefore, one could question whether the priorities of potential homebuyers have been changed due to technology, health, and socialization alteration? This study explores the preferences for housing attributes and trends in Cyprus post-COVID-19 pandemic and compares these against the views of real estate professionals who represent the Cypriot residential demand prior the pandemic. Data were gathered via qualitative surveys from 117 potential homebuyers and 36 real estate professionals from across Cyprus. A survey methodology with questionnaires was used to analyze the changes in the real estate demand between the pre- and post-COVID-19 periods. Descriptive statistics were used to determine the mean importance of the housing attributes and to compare the results from the pre- and post-COVID-19 pandemic periods. The analysis found a shift toward houses rather than apartments, and the results suggest that new housing should contain more capacity for private use spaces, and at the same time, it should be designed with flexible and adaptive layouts to accommodate more activities. This study discusses whether these shifts are likely to be temporary or permanent and the implications for real estate professionals.

1. Introduction

Humanity has survived various pandemics since the ancient years and history has shown that these events transform economies, social structures, and policies and have a profound impact on the way we live. In the beginning of 2020, when the World Health Organization (WHO) announced the COVID-19 outbreak to be a pandemic and our realities turned upside down. In an effort to stop the spread of COVID-19, people around the world had to adopt online education and working from home and, in combination with home isolation, they had to re-organize their home space due to the current limitations of the existing housing stock to host various daytime functionalities [1]. The unique impact of the pandemic on different regions underscores the importance of localized studies to understand specific changes in housing preferences and market dynamics. Amerio et al. (2020) conducted a study during the lockdown with students from a university institute in Milan, and they found that the risk of experiencing moderate–severe and severe depressive symptoms was increased when living in small apartments with poor-quality views and scarce indoor qualities and led to poor working performance and thus decreased productivity [2]. According to Mattarocci and Roberti (2020), this “new” reality could shift residential demand to more comfortable houses, which will allow for more sustainable living and working. They stated that the standards required for residential properties will possibly change and the average size of houses will increase, leading to a movement of buyers away from the city to where they could find affordable properties at lower prices per square meter [3]. A longitudinal survey from Oslo by Wolday and Böcker (2023) has shown notable shifts in residential preferences during the pandemic, with the increased value of outdoor spaces like gardens and balconies, even though satisfaction with dwelling size, neighborhood density, and proximity to work has largely remained stable, even with the rise in teleworking [4].

Kaklauskas et al. (2021) stated that the housing sector has suffered numerous difficulties due to the pandemic, with the lockdowns forcing all life activities to take place at home, meaning there was a growing need for larger living spaces with views of greenery [5]. Therefore, new challenges are arising in the residential real estate market as architects and developers seek to figure out new building designs or more sustainable spaces that will combine work, education, physical activity and leisure while maintaining a reasonable size of residential properties at an affordable price [1].

This study aims to fill the gap by investigating the post-pandemic changes in housing preferences in Cyprus. It will try to differentiate these changes from those resulting from other factors, such as lifestyle shifts, variations in economic conditions, and demographic changes. By employing a research methodology and formulating survey questions specifically to isolate the effects of the COVID-19 pandemic from other influencing factors, the study provides clearer insight into whether these changes are temporary or permanent and their implications for the real estate market in Cyprus.

The COVID-19 pandemic has significantly altered the dynamics of the real estate market. It has also highlighted the need for sustainable housing that will be adaptable and resilient to new economic and social realities, emphasizing larger living spaces, energy efficiency, and integrated health-related amenities to support various life functions and improve overall well-being [5,6]. Sustainability in this context means developing homes that are resilient, energy-efficient, environmentally friendly, and capable of supporting various living and working arrangements [7]. This aligns with the 2030 Agenda for Sustainable Development, which emphasizes the importance of resilient infrastructure and sustainable urbanization [8].

According to the Statistical Service of Cyprus, the existing housing stock in Cyprus is estimated at 482,000 in 2022. During 2020 and 2021, residential buildings represented 63.7% and 62.7% of the total new construction, respectively, in comparison with 50.8% in 2016, indicating an increase in new residential buildings on the market. The average number of rooms per new dwelling increased from 4.8 in 2008 up to 6.0 in 2016, even though the average size of households in Cyprus has remained constant at 2.7 from 2013 until the end of 2018 [9]. There has been little research carried out in Cyprus regarding housing preferences; however, the data provided by the Cyprus Statistical Service indicate an increase in demand for larger residential properties with more rooms and the preference of Cypriots to build and own houses rather than apartments [9].

Considering that measures for social distancing and working from home policies may persist or be reintroduced in response to future resurgences of COVID-19 or other infectious diseases, one could question whether the priorities of future potential homebuyers will change regarding technology, health, and socialization. The current supply of new residential properties on the market shows a trend of open-plan spaces. This characteristic may continue to be a preference of buyers as it promotes air circulation, but on the other hand, it eschews privacy, which families discovered that they desired during the lockdowns. Moreover, extending working from home may lead people to move away from the expensive accommodation of the city to cheaper properties in suburban and rural areas. According to Mattarocci and Roberti (2020), the demand for detached and semi-detached houses with gardens may increase from families with children so that they will create more pleasant living experience [3]. The importance of housing attributes related to environmental features such as open spaces, green areas, balconies, natural lights and views will increase as these characteristics mediate mental health issues and these areas may be used to conduct everyday activities for children to play and for adults’ physical activities [1].

2. Literature Review

In the literature, much interest has been directed toward the factors shaping the housing demand and homebuyers’ behavior in the real estate market. However, it was not until after the COVID-19 pandemic that researchers began to explore the impact of pandemics on housing markets, resulting in recent studies on this topic. Buying a house is a life-changing decision and can be an emotional and complex process for buyers as they need to assess various criteria as well as the economic, social, and environmental and sustainability conditions while evaluating alternatives before taking the decision to purchase a house. According to Iacoviello M. (2011), housing wealth is the measure of the market value of all residential properties in a certain country at the aggregate level and represents approximately half of a household’s net worth [10]. Therefore, residential real estate is an important component of national wealth and movements in housing wealth affect the GDP and employment in a country [11]. At the same time, housing supports health, well-being, and quality of life [11].

Housing prices and financial factors such as residential loan availability are among the main considerations when evaluating alternatives [12,13]. Eves and Kippes (2010) found that location and price are the most important factors in the house purchase decision [14], and a study in Selangor, Malaysia, by Rachmawatia et al. (2019) showed that location is the most important factor when buying a house, followed by price, quality, corporate image and promotion, which also have a significant effect on the final decision [15]. A number of studies highlight the importance of locational characteristics and accessibility in the decision to own a house and the distances to the central business district (CBD), educational facilities, amenities, shopping centers and public spaces were found to have a significant impact on housing price [12,13,16,17,18,19,20]. In addition, Eves and Kippes (2010) showed that buyers also take into account factors related to environmental perspectives; however, they demonstrated this consideration among young and older buyers with high incomes [14]. In opposition to the literature, a scientific work conducted in the urban areas of Amsterdam and other urban areas in the older cities of the Randstad showed that the house is more important than the location (Kauko, 2006). According to Kumar and Khandelwal (2018), the housing purchase decision incorporates the assessment of criteria related to the neighborhood, job accessibility and the specific characteristics of the property as well as the buyer’s demographic factors [13]. Overall, housing attributes are categorized in the literature as intrinsic housing attributes that pertain to the internal features and structural characteristics of the dwelling itself, like interior living space, private layout and structural characteristics, and extrinsic attributes that relate to the external factors outside the physical structure of the house, such as the exterior space, price, exterior design, neighborhood, location attributes and environmental qualities [21,22]. Housing preferences and house attributes significantly depend on national and cultural factors [21]. Numerous studies have been conducted around the world to research the housing preferences of buyers when looking to build or buy a new house [12,13,14,15,16,17,18,20,21,22,23,24,25]. In Cyprus, it was found that housing prices are highly determined by the size of the house, number of rooms/bedrooms, type of house, age and existence of a swimming pool [26].

Research studies in Europe display more focus on environmental and sustainability features. In contrast to Wu et al. (2017), who found that accessibility to forest parks has a negative effect on housing prices [24], the results of a scientific work in the district of Salo in Finland reported that the residents pay for environmental amenities such as the forest view [25]. Similarly to many studies in Asia, the presence of a garden was also found to be important in United Kingdom and the Netherlands. Bhatti and Church (2004) linked the presence of a garden with privacy, sociation, creativity and sensual connection to nature and found that the UK’s adults create a personal connection with their garden [27]. Moreover, in the Netherlands, apart from the physical environment, accessibility and proximity and services, it was reported that social factors, the presence of water, municipality and supply-side friction are preferred as housing attributes [23].

Recent research highlighted the pandemic’s impact on residential preferences, emphasizing the increased importance of home environments. Findings from Wolday and Böcker (2023) indicated that while the demand for outdoor amenities and mobility options has increased, preferences for dwelling size and neighborhood density have not significantly changed [4].

Moving to Cyprus, according to Eurostat data, about three-quarters of Cypriots live in houses, instead of apartments. During 2018 in Cyprus, only 27% of the population lived in apartments, 44% in detached houses and 29% in a semi-detached houses. On the contrary, 46% of the European population lived in apartments and 54% in houses [28]. There are some data published by real estate agents who conducted primary market research at a local level through the years. However, these data should be carefully interpreted, and readers should question their reliability since the reported information may hide ulterior motives and therefore be treated with caution. In 2017, it was reported that the average area of a house was 141 sqm in Cyprus, while the population in Europe lived in houses with an average of 96 sqm [29]. Also, during 2017, the chairman of the Cyprus Real Estate Agents Association (CREAA) stated that the most demanded locations by Cypriots were residential areas and Cypriots were preferring the purchase of a permanent residence rather than a long-term lease of a property and were mainly interested in apartments, with houses to be in lower demand [30]. In February 2019, newspaper publications stated that the residential demand by Cypriots was mainly toward apartments and small houses on half plots. The shift toward apartments was attributed to the millennials, who prefer living in smaller properties that are more easily maintained and are closer to the city center [31]. The majority preferred to be closer to city centers as they were considering the costs of transportation and the distances from important destinations [32].

In the post-COVID-19 reality, there are limited scientific results to discuss and conclude on the impact of the pandemic on real estate market in Cyprus as the effects of the pandemic on the economy and society are as yet under study. Mattarocci and Roberti (2020) stated that the economic recession due to COVID-19 is not expected to last in the long term. They expressed the belief that the real estate market will be one of the main driving forces of economic recovery after the end of the pandemic and it will take several years for the real estate market to adapt to the shift in demand and will allow for new opportunities and ongoing trends to transform the market [3]. A report by Ernst & Young Cyprus presented that the COVID-19 pandemic had a great impact on commercial property since Cyprus is a service-based economy and it has a large stock of office space. Thus, the increase in the working from home trend places pressure on office real estate. On the contrary, through a survey conducted during July 2020 among real estate sector executives and leaders, they found that the residential real estate market seems to be more resilient in terms of demand to the effects of the pandemic [33]. The resilience of the residential real estate market was also presented by Jones Lang LaSalle Incorporated on a global level; however, the future performance of different living sectors will vary depending on the long-term impacts of the pandemic. Even though new trends are already being observed in the market, the new normal will take time to evolve as the pandemic’s consequences are not yet possible to predict [34].

Given this research gap and the need for further insights into the attitudes of Cypriot homebuyers and trends in the residential real estate market, the aim of this study is to evaluate whether the COVID-19 pandemic, the lockdowns and their effect on the Cypriot economy will affect the residential demand in Cyprus and if architects and developers should focus on different strategies for both existing and new residential buildings to maintain a sustainable real estate market in Cyprus. Furthermore, this study differentiates the changes in homebuyers’ preferences attributed to the COVID-19 pandemic from those resulting from other factors, providing an understanding of the shift in the housing demand.

3. Methodology

3.1. Data Collection and Instrument Design

This study employs a mixed-methods approach, incorporating both qualitative and quantitative research methodologies to provide a comprehensive analysis of the research questions. It includes qualitative research that focuses on observations and words to present reality. This involved conducting in-depth interviews and focus group discussions with participants to gather rich, detailed insights into their experiences and perspectives. The qualitative data were analyzed using thematic analysis, which involved coding the data and identifying key themes and patterns. This approach allowed us to capture the nuanced and contextual factors influencing the study’s focal issues in order to gain information regarding the residential demand in Cyprus prior to the lockdowns [35] The research also includes a quantitative part that uses numbers to express opinions. The quantitative component utilizes numbers to express opinions and measure variables of interest. A structured survey was administered to a larger sample to quantify the prevalence and intensity of the phenomena identified in the qualitative phase. It was implemented to gather data related to the residential demand both pre and post the pandemic [36].

This study employs a qualitative survey design consisting of two distinct questionnaire surveys aimed at capturing the housing demand dynamics before and after the COVID-19 pandemic.

For the purposes of this study, the “pre-COVID-19” period is defined as the year 2019, with additional context drawn from trends observed between 2016 and 2019. This period provides a baseline to compare the shifts in homebuyers’ preferences resulting from the COVID-19 pandemic.

A web-based survey using Google Forms was conducted by distributing a questionnaire online via social media and other platforms to collect the required data directly from buyers who were looking to build or buy a new residential property in Cyprus, illustrating the residential demand after the pandemic. The questionnaire was designed to obtain information on the respondent’s housing preferences using closed-ended questions that allow higher ease of scoring and improve the reporting efficiency of the study [35].

The first part of the questionnaire consists of general background questions to collect information on respondents’ gender, age, region, occupation, current housing situation and household size. The second part aims to gather information concerning the housing trends identified in the Cypriot market, such as the tendency to buy larger residential properties and the preference to purchase houses rather than apartments as well as to obtain information regarding housing priorities and preferences by Cypriot homebuyers related with price and location characteristics. In the third section, the respondents were presented with housing-related factors (intrinsic and extrinsic attributes) identified through the literature review (see

Table 1. Summary table of housing attributes affecting residential demand.

Housing Attribute	Reference
Housing price	[12,13,15]
Location/neighborhood	[13,14,15]
Demographic characteristics	[13]
Accessibility and distance to job and amenities	[12,13,16,17,18,20,23,24]
Environmental attributes and sustainable living features	[14,17,23,25]
House size	[18,21,26]
Number of rooms	[26]
Number of bedrooms	[12,17,18,21,22,26]
Number of bathrooms	[12,17,18,21]
Type of house	[26]
House age	[26]
Swimming pool	[26]
Floor layout	[16,18,21,22]
Space organization	[22]
Ventilation	[13,15,18]
Floor flexibility	[16,18,21,22]
Presence of a garden or green area	[12,16,17,21,23,24,27,37]
Security and privacy	[17,21,27]

) and asked to indicate the importance of each factor if they were deciding to build or buy a house in the after COVID-19 reality.

The participants ranked each one of the housing attributes on a five-point Likert response scale to mark the importance of each attribute (5 for “extremely important, 4 for “very important”, 3 for “important”, 2 for “somewhat important” and 1 for “not important”).

The survey targeted different age groups across Cyprus, was anonymous and was performed six months after the end of the first lockdown in Cyprus and during the period when the second wave of the pandemic hit Europe.

The timing of the surveys was intentionally chosen to capture the immediate reactions and evolving preferences of homebuyers during the early stages of the COVID-19 pandemic. The surveys aimed to provide real-time insights into how the pandemic can reshape housing demand. While this approach reflects the immediate impact of the pandemic, future research could benefit from longitudinal studies and post-COVID-19 pandemic surveys to capture long-term changes and provide a clearer “before-and-after” perspective.

To identify changes in homebuyers’ preferences specifically attributed to the COVID-19 pandemic, this study incorporated questions distinguishing pandemic-related influences from other factors, such as lifestyle shifts, economic conditions, and demographic changes. Additionally, demographic and economic data were collected to control for these non-pandemic-related influences.

In order to identify a change in homebuyers’ preferences and priorities in Cyprus after the lockdown, it was important to determine the characteristics of the residential demand prior to the COVID-19 pandemic. Therefore, it was decided to conduct semi-structured interviews along with the questionnaire survey amongst experts who are real estate professionals [38]. The second questionnaire was distributed using Google Forms among real estate professionals who were found through industry networks. The main hypothesis was that experienced real estate professionals have a broader view of the market prior to the lockdown than the actual buyers and have a better understanding of the housing attributes that have a significant impact on the housing prices and in shaping the choice to buy a house. The survey targeted different real estate professionals across Cyprus.

3.2. Data Analysis Approach

The data collected through the questionnaire surveys were statistically analyzed in the Statistical Package for Social Sciences (version 24, SPSS, SPSS Inc., Chicago, IL, USA) for Windows. Categorical variables were described as the count and percentage, while continuous variables were expressed as the mean, min, max and standard deviation.

The outcomes from the interviews were used to gain more insight into the results and the reasons behind the results of the questionnaire related to the residential demand prior to the COVID-19 pandemic. The interviews were also conducted to ensure that the questionnaire results were consistent with the interviewees’ opinions and responses.

Regarding the data analysis, the primary purpose was to calculate the descriptive statistics and more specifically the mean rating of importance for each of the housing attributes and determine whether there are any important differences in housing attributes importance, prior and post the coronavirus pandemic. The Shapiro–Wilk (SW) test was used to determine the normality of the distribution of data in the survey. To identify differences in housing attributes’ importance pre- and post-COVID-19 outbreak, the results related to the mean rating of importance of each attribute were arranged in overall rank order of significance to illustrate the similarities and differences related to the demand between the subject time periods.

3.3. Methodology Limitations

The limitations of the methodology followed include the low response rate, and for that, much effort was put into distributing the questionnaire to as many people as we could despite the difficulties of social distancing, as well as the incorrectly or illegibly filled out questionnaires. This study relies on data gathered from two questionnaires; thus, the results and discussion explicitly rely on only participants’ responses and sometimes may contain potential sources of bias.

The pre-COVID-19 survey included real estate agents, architects, civil engineers, and property developers. While comprehensive, the perspectives of architects and developers might differ from those of real estate agents, who are more familiar with the residential market. Future studies should focus more on real estate agents for consistent comparisons.

The pre-COVID-19 survey’s sample size of 36 participants was relatively low, limiting the generalizability of the findings. Increasing the sample size in future research would enhance the robustness and representativeness.

Moreover, the professional profiles of real estate agents were not deeply categorized. Future research should incorporate detailed categorization based on experience and market specialization to improve the reliability of the findings.

In addition, the fact that there is very little scientific research regarding housing preferences in Cyprus as well as the impacts of COVID-19 on the residential real estate market, makes it difficult to interpret the results and draw concrete conclusions based on the results’ analysis. Moreover, questionnaires do not offer the opportunity to discuss the opinions and ideas behind the answer of each participant. So, the results of the questionnaire may present the trend in the residential real estate market prior to and after COVID-19, but the results will fail to provide more insight to the reasons behind the responses [39].

Lastly, another potential limitation of our study is the absence of sample weighting, which could address potential sample bias more effectively. Future research should consider integrating sample weighting to mitigate sample bias and enhance the robustness of the results. However, despite this limitation, we believe the overall research context and the interpretation of our findings remain clear and valuable, providing a strong foundation to guide future research efforts in this area.

4. Results and Discussion

4.1. Pre-COVID-19 Survey: Interviews with Real Estate Experts

This section examines the responses to the survey questions that relate to the residential demand in Cyprus prior to the COVID-19 pandemic. It is determined that after the economic crisis, Cypriot residential buyers decided upon the purchase of an apartment rather than a house and this preference toward apartments was also observed even after the recovery of the Cypriot economy in 2016 as households experienced the negative impacts of the recession. The main group of buyers in the capital city were families with children, of whom the majority were looking for budget prices and resale properties. Regarding the question of whether Cypriot homebuyers preferred larger residential properties over the time of the pre-COVID-19 period, real estate agents stated that they did not realize any change in terms of the property’s size since potential buyers were interested in minimizing their costs and searched for affordable properties, especially those of low and middle income. The main motives behind the decision to buy a home was the distance from family members and schools, and not so much the distance from their workplace, other amenities, or transport. Another factor that seemed to have an impact on the location choice was proximity to green areas and parks. Concerning the question related to the preferred number of bedrooms, the interviews revealed that it was very important for families with children and most homebuyers to buy properties with three or four bedrooms. It was a very important housing attribute, reflecting the need for privacy as each member of the family needed their personal space. When discussing the importance of sustainability and environmental features in buyers’ choice to purchase a property, it was stated that the buyers were asking whether the property was satisfying the requirements that should be covered by a property to fall under Class A, which is the highest Energy Performance class. However, these properties are too expensive, and buyers were usually shifting to more economical choices and were purchasing properties falling under Class B. In respect of other housing attributes having any importance in the final decision to buy a home, the real estate experts stated that a swimming pool was rarely a requested attribute, and in general, they mentioned that buyers were placing more emphasis on the external areas rather the internal rooms and spaces. There was also some demand for houses but mainly in suburban areas, i.e., in the outskirts of Nicosia, built on half-plots and detached houses with prices ranging around EUR 300,000. When it came to prices, the fact that financial institutions were not lending money so easily and that for most people loan issuance is the only source of finance complicates the housing market. Other housing attributes that had some impact on the residential demand were large open spaces, ventilation, security and privacy, flexible and adaptive layout.

An important aspect in Cyprus that was outlined in the interviews is the market differences from one city to another. It was clear from the beginning of the interviews that the driving force of the residential demand in Limassol was not the local families but foreign buyers who were seeking luxury apartments in the city center with roof gardens and swimming pools, while the demand by Cypriot buyers was mainly for smaller and more affordable units.

4.2. Pre-COVID-19 Results: Questionnaire Distributed to Real Estate Professionals

Prior to starting to analyze and present the results, the sample was tested for normality. Using the Shapiro–Wilk (SW) test, it was found that all the parameters have a p-value lower than 0.05; thus, the data are not normally distributed and non-parametric tests had to be used for the analysis. The respondents participating in the research consisted of a total of 36 real estate professionals. Most of the participants are working in Limassol (42%) and Nicosia (33%), while the rest of them are working at Paphos (19%) and Larnaca (6%).

From the participants, 35.7% of the civil engineers and 58.8% of the architects responded that Cypriots prior to the COVID-19 pandemic were preferring to build a new house on vacant land. A second preference seems to be the purchase of a newly constructed apartment (33.3%), followed by the purchase of a newly constructed semi-detached house (8.3%), while the least preferences were buying a newly constructed detached house (5.6%), buying an established semi-detached house (5.6%) and purchasing an established detached house (2.8%). According to the responses, the choice of purchasing an established apartment (>5 years old) was not preferred by homebuyers.

In regard to the location that was preferred by Cypriots when deciding to buy or build a new home prior to the COVID-19 pandemic (see Figure 1), it is clear that 23 participants (63.9%) believed that Cypriots preferred a home in suburban areas with mostly residential uses, while the secondary choices were close to city center near a mix of offices, apartments and shops (22.2%) and suburban areas with a mix of houses, shops and businesses (13.9%). The results show that small towns and rural areas were not preferred by homebuyers.

Concerning the question of whether Cypriots preferred larger residential properties in terms of the useful internal area over time in the last five years, Figure 2 presents that 24 real estate professionals (66.7%) agreed with this statement, while 12 participants (33.3%) responded that they did not notice any change in the demanded internal area prior to the COVID-19 pandemic.

Regarding the number of bedrooms demanded by Cypriot homebuyers prior to the COVID-19 pandemic, as per Figure 3, the majority (75.0%) responded that the most preferred number of bedrooms was three, while five participants believe that they were purchasing or developing residential properties with more than three bedrooms. Only four respondents answered that Cypriots demanded two-bedroom properties, while it is evidenced that one-bedroom residential properties were not preferred by Cypriot homebuyers.

According to the results, an office was a significant room for Cypriots prior to the COVID-19 pandemic as 24 out of 36 participants (66.7%) responded that Cypriots were looking for a residential property with an office. The second most preferred room seems to be a playroom (27.8%), while the need for a gym or a room for physical activities was not a priority prior to the pandemic.

In relation to other amenities and attributes that were preferred in the pre-COVID-19 reality, it is clear that the most preferred housing attribute was the presence of a garden (72.2%), followed by spaces with large openings (50.0%) and balconies (47.2%). The characteristics of natural light and views of green areas were of moderate preference, with 13 participants indicating a preference for natural light and 12 participants indicating a preference for views of green areas among Cypriots looking to buy or build a house. Surprisingly, according to the results, the existence of a swimming pool had a similar priority to natural light and views to green areas, which is inconsistent with the beliefs of the interviewees, who all stated that a swimming pool was not demanded by their clients, who were mostly families with children.

Descriptive statistics were used to determine the average rating of importance assigned to each of the 19 housing attributes presented in Section 3 of the questionnaire distributed to real estate professionals.

Table 2. Relative importance of housing attributes prior to the COVID-19 pandemic.

Housing Attribute	Mean	Std. Deviation	Rank Order
Housing price	4.14	0.867	1
Number of bedrooms	3.83	0.737	2
House size	3.72	0.741	3
Type of house	3.47	0.696	4
Location/neighborhood	3.47	0.736	5
Number of bathrooms	3.31	0.749	6
Security and privacy	3.31	0.889	7
Space organization	3.19	1.037	8
Distance to schools	3.17	1.000	9
Presence of a garden or green area	3.08	0.967	10
Distance to workplace	3.03	1.000	11
Open-plan spaces	3.00	0.717	12
Ventilation	2.94	1.040	13
Distance to city center	2.78	0.929	14
Flexible and adaptive floor layout	2.53	0.845	15
Distance to amenities (shops and parks)	2.42	0.874	16
Sustainability features	2.39	0.766	17
Proximity to transport/major roads	2.14	0.931	18
Swimming pool	2.06	0.924	19

shows the mean rating of importance that real estate professionals provided for each housing attribute and the results are sorted in an overall ranking of importance based on the real estate professionals’ rating. From looking at the results in Table 2, the mean scores range from 4.14 (rank 1) to 2.06 (rank 19). According to the mean and rank order, it is evident that real estate professionals believe that Cypriot homebuyers were placing higher importance on housing prices. It is also apparent that housing prices, number of bedrooms and a house’s size were the three most important attributes, whilst a swimming pool, proximity to transport and other roads, and sustainability features were the three least important housing attributes. The high ranking of housing prices is not surprising, given that through the interviews it was made very clear that Cypriot homebuyers were very cautious in terms of price. Also, the high importance of the number of bedrooms may be directly related to privacy as the factor security and privacy ranks in seventh place with a mean level of importance of 3.31. It is interesting that the number of bathrooms seems to be a relatively important housing attribute, ranking in sixth place, in a higher-ranking order than space organization, distance to school and workplace and presence of a garden or green area. Also, the results concerning the amenities and attributes preferred by Cypriots are consistent with the level of significance assigned by real estate professionals, with the presence of a garden or green area and open-plan spaces ranking in 10th and 12th place, respectively, with a factor of significance of 3.03 and 3.00, respectively. Among the housing attributes with relatively low importance are ventilation and sustainability features, which indicate the lack of awareness among Cypriot homebuyers related to the importance of preserving the natural environment as well as environmental legislation.

4.3. Questionnaire Distributed to Potential Homebuyers

The questionnaire used to investigate if the pandemic and the lockdowns will affect the residential demand in Cyprus was distributed among 117 participants (N = 117). The surveys conducted six months after the first lockdown and during the second wave provide valuable insights into the immediate impact of COVID-19 on homebuyers’ preferences. Capturing responses during this period offers a real-time snapshot of how the pandemic influenced the housing demand. Firstly, the sample was tested for normality using the Shapiro–Wilk (SW) test in SPSS. The results showed that the parameters have a p-value lower than 0.05; thus, the data are not normally distributed and non-parametric tests had to be used for the analysis.

The socio-demographic background data obtained from the survey are displayed in

Table 3. Respondents’ characteristics.

		Frequency	%
Gender of respondents	Female	68	58.1
	Male	49	41.9
District of residence of respondents	Ammochostos	11	9.4
	Larnaca	24	20.5
	Limassol	17	14.5
	Nicosia	63	53.8
	Paphos	2	1.7
Age group of respondents	18 to 30	70	59.8
	31 to 40	38	32.5
	41 to 50	9	7.7
Marital status	Divorced	1	0.9
	Married	50	42.7
	Separated	1	0.9
	Single, but cohabiting with a significant other	23	19.7
	Single, never married	42	35.9
Household income	<EUR 15,000	12	10.3
	>EUR 75,000	10	8.5
	EUR 15,000–29,999	35	29.9
	EUR 29,000–44,999	12	10.3
	EUR 29,999–44,999	20	17.1
	EUR 45,000–59,999	20	17.1
	EUR 60,000–75,000	8	6.8
Number of children	1	21	17.9
	2	12	10.3
	0	84	71.8

. Among the respondents, 42% were male and 58% were female. A large portion of the respondents live in Nicosia (54%), the rest of them live in Larnaca (20%), Limassol (15%) and Ammochostos (9%), while only 2 out of 117 respondents live in the district of Paphos. A major portion of the respondents are young (70% were under 30 years old), 38 out of 117 participants belong in the age group of 31 to 40, while a small portion of 8% fall within the age group of 41 to 50, of which only 1 respondent was single never married. A large fraction of the sample was either married or cohabiting with a significant other (42.7% were married and 19.7% were cohabiting with a significant other), while 35.9% of the participants were single and only two people were divorced and separated, respectively. Most of the respondents did not have children (71.8%), whereas only 10.3% of the sample had two children and the rest of them had only one child (17.9%). According to the data from the Statistical Service of Cyprus, the average household’s size in Cyprus remained constant at 2.7 until the end of 2018 and decreased to 2.6 in 2019 [40]. Analyzing the results, it was found that the average household size of the sample is 2.0. The results also show that 29.9% of households in the sample earn between EUR 15,000 and EUR 29,999 per annum and 27.4% of respondents’ households have a total income ranging between EUR 30,000 and EUR 44,999. A small portion of the participants earn less than EUR 15,000 per annum, of whom two participants have children, and the remainder of the households in the sample receive more than EUR 45,000 per annum. The average and median annual incomes of Cypriots in 2020, the year the questionnaire was distributed, were EUR 24,036 and EUR 18,876, respectively [41]. While these data indicate that a portion of our sample falls within these income levels, it is not sufficient for making a detailed comparison with the overall population, as more granular data are not available.

In terms of the dwelling preferences, the majority indicate a preference for building a new home on vacant land (57.3%), with an almost equal proportion preferring the purchase of a newly constructed apartment (13.7%), a newly constructed detached house (9.4%) and a newly constructed semi-detached house (9.4%). For the already established options, older than five years old, only 10.3% of the total of respondents prefer purchasing a resale property.

As illustrated in Figure 4, Cypriot homebuyers prefer purchasing or developing a residential property in suburban areas with mostly residential uses (36.8%) and a secondary preference seems to be suburban areas with a mix of houses, shops and businesses (22.2%). The results also illustrate that the city center has the same level of preference as small towns (17.1%), whereas a small portion of the sample would buy a house in rural areas (6.8%).

In regard to the preferred size of the house, the majority of the respondents would buy or build a house with an area between 151 m² and 200 m² (59.8%), with a similar level of preference between a house with an area 201 m² to 250 m² (20.5%) and a property with an extent smaller than 151 m² (17.1%). Only a minority of 2.6% would build or purchase a house with an extent larger than 250 m².

For a clearer understanding, a similar pattern is illustrated in Figure 5 in relation to the housing price, as most of the participants responded that they would pay between EUR 150,000 and EUR 249,999 (56.4%), while the price ranges of EUR 250,000 to EUR 349,999 and lower than EUR 150,000 are the amounts that would be spent by 19.7% and 17.1% of the sample’s participants, respectively. Less than 7% of the sample would spend more than EUR 350,000 for the purchase of a residential property. It is notable that high-income individuals expressed the desire to purchase lower-priced properties, which could be attributed to factors such as cost-effective investments, prioritizing value over luxury, and considering economic uncertainties.

A chi-square test was performed to examine if the household’s income is related to the house’s size and housing price. With the chi-square, you have no measure of the strength of the association, and since the variables are categorical data, the phi-coefficient is calculated, which is similar to a correlation coefficient. The analysis shows that the phi-coefficient of the household’s income and the house’s size is 0.456, indicating a strong positive relationship, while the phi-coefficient of the household’s income and the housing price is 0.658, also demonstrating a strong positive relationship.

Regarding the number of bedrooms demanded by respondents, 85 participants (72.6%) responded that they would prefer residential properties with three bedrooms, while only two participants would purchase a property with one bedroom, who both were singles, younger than 30 years old and had no children. Two-bedroom residential properties were equally preferred to residential properties with more than three bedrooms (12.8%).

Regarding the motives behind the purchase of a home, almost half of the participants (43.6%) responded that their main motive is moving to an affordable area, followed by moving closer to family (28.2%) and to the workplace (23.9%).

The research shows that 93 out of 117 participants (79.5%) stated an office to be an important room for a residential property. It is apparent that a playroom is also preferred by 41.0% of the respondents, with female participants being keener on having one than male. It is demonstrated that the need for a gym or a room for physical activities is not of high priority for respondents, as only a quarter of the sample choose it as a preferred room. In relation to other amenities and attributes that are preferred by the respondents, 93 out of 117 participants (79.5%) believe that the existence of a garden is the most preferred attribute, followed by natural light (59.8%) and views to green areas (53.0%). The existence of a balcony and spaces with large openings are of moderate priority, with 43 participants indicating a preference for balconies and 42 participants indicating a preference for large openings when looking to buy or build a house. It is also evident that the existence of a swimming pool is the least preferred housing characteristic.

Similarly to the questionnaire distributed to real estate professionals, descriptive statistics were used to determine the average rating of importance assigned to each of the 19 housing attributes presented in Section 3 of the questionnaire distributed to potential homebuyers.

Table 4. Relative importance of housing attributes after lockdown as per potential homebuyers.

Housing Attribute	Mean	Std. Deviation	Rank Order
Housing price	3.70	1.053	1
Security and privacy	3.53	1.103	2
Presence of a garden or green area	3.44	1.170	3
Location/neighborhood	3.41	0.984	4
Space organization	3.31	1.021	5
Number of bedrooms	3.20	0.940	6
Type of house	3.20	1.036	7
House size	3.09	0.956	8
Ventilation	3.09	1.083	9
Flexible and adaptive floor layout	3.01	1.030	10
Distance to workplace	2.86	0.918	11
Number of bathrooms	2.85	1.116	12
Distance to city center	2.82	0.988	13
Open-plan spaces	2.77	1.094	14
Distance to schools	2.74	1.109	15
Distance to amenities (shops and parks)	2.73	0.953	16
Sustainability features	2.73	0.988	17
Proximity to transport/major roads	2.44	1.046	18
Swimming pool	1.63	0.979	19

shows the mean rating of importance that respondents provided for each housing attribute as well as the overall rank of significance in descending order of relative importance. The results in Table 4 illustrate that the mean scores range from 3.70 (rank 1) to 1.63 (rank 19). According to the mean and rank order, it is evident that the housing price (3.70), security and privacy (3.53), and the presence of a garden or a green area (3.44) are the three most important attributes, while a swimming pool (1.63), proximity to transport and other roads (2.44), and sustainability features (2.73) are the three least important. On the relative importance of the housing attributes, the analysis shows that the location and neighborhood of the dwelling are also of high significance, ranking in fourth place with a mean of 3.41. Among the factors with relatively high importance are the space organization, number of bedrooms and dwelling type and its size. Examining the results regarding the respondents’ motives when choosing a residential property, it can be seen that these are consistent with the mean rating of importance assigned to the distance to the workplace, distance to schools and distance to amenities such as shops and parks by homebuyers who seem to be more concerned about the number of bathrooms than the dwelling’s proximity to these important destinations. Moreover, the results indicate that for homebuyers, ventilation and a flexible and adaptive floor layout are also of higher importance than the proximity to these destinations, which according to the results are of moderate importance, whereas open spaces are listed in an even lower ranking than them at the 14th place. Even though ventilation ranks in the middle of the list of the housing attributes, the analysis indicates that sustainability features are the second least important attributes.

4.4. Analysis of the Results and Discussion

For the purposes of this study, the results of the questionnaire distributed among real estate professionals represent the Cypriot residential demand prior to the pandemic and the results obtained from the questionnaire distributed to potential homebuyers illustrate the residential demand in the after COVID-19 reality. To identify changes in homebuyers’ preferences specifically attributed to the COVID-19 pandemic, the study incorporated questions distinguishing pandemic-related influences from other factors, such as lifestyle shifts, economic conditions, and demographic changes. Additionally, demographic and economic data were collected to control for these non-pandemic-related influences.

Table 5. Relative importance of housing attributes as per homebuyers and real estate professionals.

Housing Attribute	Homebuyers	Rank	RE Professionals	Rank
Housing price	3.70	1	4.14	1
Security and privacy	3.53	2	3.31	7
Presence of a garden or green area	3.44	3	3.08	10
Location/neighborhood	3.41	4	3.47	5
Space organization	3.31	5	3.19	8
Number of bedrooms	3.20	6	3.83	2
Type of house	3.20	7	3.47	4
House size	3.09	8	3.72	3
Ventilation	3.09	9	2.94	13
Flexible and adaptive floor layout	3.01	10	2.53	15
Distance to workplace	2.86	11	3.03	11
Number of bathrooms	2.85	12	3.31	6
Distance to city center	2.82	13	2.78	14
Open-plan spaces	2.77	14	3.00	12
Distance to schools	2.74	15	3.17	9
Distance to amenities (shops and parks)	2.73	16	2.42	16
Sustainability features	2.73	17	2.39	17
Proximity to transport/major roads	2.44	18	2.14	18
Swimming pool	1.63	19	2.06	19

shows the mean rating of importance that the homebuyers and real estate professionals provided for each housing attribute. The results are arranged in overall rank order of significance based on the homebuyers’ responses in order to illustrate the similarities and differences between the demand prior to the pandemic and the after COVID-19 reality. It can be seen that, on average, for the vast majority of the housing attributes, homebuyers provided slightly lower ratings of importance than the real estate professionals, indicating that homebuyers in the new COVID-19 reality place lower importance on more housing attributes than prior to the pandemic.

Housing price is the most important attribute overall to homebuyers, both prior to and after the pandemic, ranking first among all 19 housing attributes. This echoes other research in Malaysia [15], India [13] and Indonesia [12], which identified the housing price as one of the most important variables in the house purchase decision. Looking at the results, it seems that in the “new” reality, homebuyers place lower importance on the housing price than prior to the lockdowns. The results are also consistent with the motives of homebuyers based on which they were deciding to buy or build a house, as both prior to and after the pandemic their main motive was moving to an affordable area. The phi-coefficient of the household’s income and housing price is 0.658, demonstrating a strong positive relationship.

Security and privacy are considered to be the second most important attribute for homebuyers in the post-COVID-19 world. Li et al. (2021) found that the pandemic significantly affected various aspects of urban life in China, with gated communities gaining popularity due to their perceived effectiveness in preventing health risks by excluding outsiders. This enhanced their “security zone” function and led to an increase in their housing prices [42]. The issue of security and privacy was found to be less important by homebuyers prior to the pandemic as real estate professionals place it in the seventh position with a lower mean rating of importance. Ibem et al. (2015) conducted research in Nigeria and found that the most adequate housing attribute was privacy in the residences and security of lives, and property in the residences was seen as one of the key components of residential satisfaction evaluation [43]. The shift toward security and privacy after the pandemic hit the world might be linked with the lockdowns, during which public-use spaces in the house were intruded upon by other household members and people discovered the need for private space to work and escape from the rest of the household’s members to relax. A survey by Park, Newton and Lee (2023) found that the sudden shift to working from home during the COVID-19 pandemic led to blurred boundaries between home and work and feelings of crowding among telecommuters that can directly or indirectly affect their satisfaction with their work environments, well-being and work performance [44].

The presence of a garden or green area ranks in third place among all the attributes, with a mean ranking of importance of 3.41, while prior to the pandemic, it ranked in a much lower position, in tenth place, with a lower factor of significance (3.08). The mean level of importance indicates that after the lockdowns it has a higher significance. Several studies have found gardens and green areas to be important for homebuyers across Europe and Asia [12,16,17,21,23,24,27,37]. Bhatti and Church (2004) found that the presence of a garden is linked with privacy, sociation, creativity and sensual connection to nature [27]. The change in preference toward gardens and green areas could also be connected to the effects of the lockdowns on the psychology and mentality of people. It is evident that exposure to nature has positive impacts on mental health and well-being. Pouso et al. (2020) conducted an online self-report survey with people from around the world between April and May 2020 and found that the lockdowns significantly affected mental health and contact with nature assisted people in coping with lockdown measures, and those who have access to outdoor spaces and blue–green elements in their views experienced more positive feelings [45]. During the lockdowns, people gained an increased appreciation for things that offer a sense of escape and provide a connection with nature and the world outside the walls of their house. Therefore, a private garden is a housing attribute that could make a property a “good” place to live, providing at the same time privacy and connection with nature. According to a study by Bell et al. (2022), the COVID-19 pandemic has significantly increased the value and appreciation of home gardens, highlighting their positive contribution to the social and ecological environment of cities and improving quality of life and leisure time during and after the pandemic [46]. Lai et al. (2020) also mentioned that access to private gardens is crucial for maintaining emotional resilience, mental well-being, and physical activity during lockdowns [47].

In continuation of the above, studying the results, is evident that natural light is the second most preferred housing amenity after the existence of a garden. A research study by Boubekri et al. (2014) showed that employees exposed on natural light in their workplace had better sleep as light improves circadian rhythms, and they also found that working in spaces with natural light promotes productivity and mental health [48]. During the time of isolation and confinement in homes, people lost contact with nature, including fresh air and natural light, and COVID-19 demonstrated that natural light is no longer a mere value addition to a residential property but a necessary element.

Location and neighborhood are also important factors for housing consumers’ both prior to and after the pandemic. It is evident that even though prior to the lockdowns location and neighborhood ranked in fifth position compared to the fourth place in the after COVID-19 reality, it was of slightly higher importance. A study by Ferreira and Wong (2022) showed that post-COVID-19 pandemic, there was a preference for neighborhoods that are farther from the city center and have higher social and professional network shares [49]. In regard to the location preference, the most preferred location by homebuyers continues to be suburban areas with mostly residential uses. However, it can be seen that after the lockdowns, some homebuyers could consider purchasing a house near small towns and rural areas, which were not preferred prior to the pandemic. These results may suggest that people may want to escape city life after the lockdowns and move to cities’ outskirts and rural areas, with many people longing for better access to nature and more space.

Next in importance is space organization, which received a higher mean rating of importance by homebuyers in comparison to the pre-COVID-19 reality, which ranked it in the eighth place. According to the research of Mojgimi and Jusan (2015), space organization ranked in first place among 13 attributes as its determinants, private and interior public living space, had a great impact of homebuyers’ final choice [22]. After the lockdowns, homebuyers assigned more importance to space organization, which may reflect the general dissatisfaction regarding the current housing floor layout arrangements as the confinement to houses brought to the surface their limitations. It is evident that the importance of a flexible and adaptive layout has increased, as in the post-COVID-19 reality it is ranked in 10th place compared to its 15th position prior to the pandemic. Even though flexibility and adaptability are not new concepts in architectural design, during the pandemic, their importance has been evident due to the need for the reorganization of homes to accommodate a space to work remotely.

Number of bedrooms is ranked in sixth place by homebuyers after the lockdowns and significantly lower than prior to the pandemic, when it was the second most important housing attribute. When comparing the preferred number of bedrooms prior to and after the pandemic, it is apparent that homebuyers’ preference has not changed since the most preferred number of bedrooms for a residential property is still three. In general, bedrooms have a special meaning as they are considered a private space where people keep their most personal possessions and have a sense of security. A study among undergraduate students highlighted the importance of bedrooms as private spaces where individuals keep their most personal possessions and feel a sense of security, underscoring the role of these spaces in fostering a sense of belonging and personalization [50]. Mojgimi and Jusan (2015) indicated that an insufficient number of bedrooms can be a significant obstacle for families, and in addition, they stated that the number of bedrooms is related to privacy since more bedrooms means less shared bedrooms among the household’s members [22]. While appreciating the time alone, the lockdowns and people being quarantined forced families to isolate themselves in the same house, and during this period, household members found the opportunity to reconnect through everyday activities such as a simple proper sit-down family movie night.

Next in importance is the type of house, which received a lower mean rating of importance in the post-COVID-19 period compared to its significance prior to the lockdowns (ranking in fourth place). According to the Statistical Service of Cyprus, the composition of new dwellings constructed indicates a preference for houses rather than apartments since the house’s proportion of new dwellings constructed increased from 59.2% in 2013 to 69.6% in 2016 [40]. This observation seems to have continued to apply prior to the pandemic, since the results’ analysis indicates that owning a house (66.7%) was more preferred than purchasing an apartment (33.3%). Although the overall importance of the dwelling preference decreased after the pandemic, an even higher preference for houses (82.9%) rather than apartments (17.1%) by Cypriot homebuyers is observed and more specifically for developing their own house on vacant land. This could be attributed to the increased significance of security and privacy, and to the presence of a garden or green area. Moreover, most apartments have small balconies rather private gardens and that is one of the advantages of detached houses, which allow you to create a garden and have a backyard for kids to play in safely.

The size of the house ranked in eighth place after the pandemic as homebuyers assigned it a significantly lower mean rating of importance in comparison to the pre-COVID-19 reality, when it was the third most important of all the housing attributes. According to the Statistical Service of Cyprus, the average floor space of new dwellings constructed increased from 154 m² in 2008 to 190 m² in 2015, and since then, it is ranging between 190 m² and 208 m², as illustrated in Figure 6 [40]. Looking at the results, it can be said that prior to the pandemic, most homebuyers preferred larger residential properties. Although in the post-COVID-19 period, it is evidenced that they mostly prefer residential properties with an area between 151 m² and 200 m² (59.8%), with a similar level of preference between a house with an area of 201 m² to 250 m² (20.5%) and a property with an extent smaller than 151 m² (17.1%). As previously mentioned, the phi-coefficient of the household’s income and the house’s size is 0.456, indicating a strong positive relationship.

Following the size of the house, homebuyers think that ventilation is the next most important attribute (ranked ninth overall). Prior to the pandemic it was rated with a lower significance ranking in 13th place. Social distancing and ventilation have been crucial measures in controlling the spread of COVID-19 [51]. Morawska et al. (2020) emphasized that enhancing building ventilation is essential for reducing airborne infections, including COVID-19 disease, highlighting the need for effective ventilation systems in mitigating virus transmissions [52].

Distance to workplace (rank 11), distance to city center (rank 13), distance to schools (rank 15) and distance to amenities such as shops and parks (rank 16) were rated and ranked very closely in terms of importance by homebuyers after the lockdowns. However, in the pre-COVID-19 reality they were rated with a lower level of importance, despite the overall rank order being similar to that after the lockdowns, with the exception of the distance to city center, which has a slightly higher mean rating of importance. The high car dependency in Cyprus as well as the relatively small distances between various destinations may also be a reason why homebuyers do not place high importance on the distance to these important destinations. The distance to schools is ranked in a much higher position (rank nineth) prior to the pandemic. Based on the interviewees, moving closer to better school locations was important for families who wanted their children to attend a particular private school. The fact that the distance to schools ranks in a much lower place after the lockdowns may be associated with the transition to online education since the beginning of the pandemic, and through the experienced gained during lockdowns, private educational institutions could implement new digital learning possibilities to stimulate lessons’ productivity.

Number of bathrooms received a much lower mean rating of importance after the lockdowns (ranked 12 overall) in relation to its importance prior the pandemic’s outbreak (ranked 6). It appears that homebuyers assign similar importance on the number of bathrooms as the distance to the workplace.

Next in importance is open-plan spaces, which received a lower mean rating of importance by homebuyers in the after COVID-19 reality, ranking in 14th and 12th places, respectively. The mean rating of importance is consistent with the preference for amenities prior to and after the lockdowns as the results show a decrease in the preference for large openings, i.e., open-plan layouts. In the time of home confinement and isolation, it was emphasized that along with open-plan spaces comes a lack of privacy. People tried to find ways to create zones to create quiet spaces as well as to segregate work and education from play and relaxation. Couples who were both forced to work from home needed a dedicated office space, and for families with children, a separate space was necessary to keep the kids busy while the parents were working or a quiet corner for the children to follow online classes.

The results regarding the preferred rooms by homebuyers indicate a general increase in the preference of the existence of an office, a playroom, and a gym/space for physical activity post-COVID-19. A study with Italian subjects that measured their total weekly physical activity expenditure before and during quarantine showed that maintaining a regular exercise routine is essential to maintain physical and mental health during the lockdown [53]. Although Cypriot homebuyers seem to assigned more priority to a space for physical activities post-COVID-19, an office and a playroom continue to be of much higher preference.

The lowest rated housing attributes overall, both prior to and after the lockdowns, are sustainability features (ranked 17), proximity to transport and major roads (ranked 18), and swimming pool (ranked 19). However, homebuyers assign a higher mean rating of importance to sustainability features and proximity to transport after the lockdowns, while a swimming pool received a much lower mean rating of importance. The low mean rating of importance awarded to sustainability features illustrates Cypriots’ lack of awareness related to sustainability, even though they have become more interested in environmental issues in recent years.

5. Conclusions

Despite the similarities with other markets, the distinct characteristics and localized impact of the COVID-19 pandemic on the Cypriot housing market underscore the importance of regional studies. The findings highlight the unique preference shifts and economic sensitivities in Cyprus, which inform tailored policy and market strategies.

Unlike some other markets, such as Spain, Lativa, Estonia, Lithuania, Greece and Malta, where apartments remained highly favored compared to houses in 2021, and according to Eurostat, 71% of the EU population in cities lived in a flat that year [54], this study found a notable shift in Cypriot homebuyers’ preferences toward houses. Comparing the results pre- and post-COVID-19 pandemic, it is evident that there is also an increase in importance of housing attributes related to privacy and flexible and adaptive layouts. It seems that the lockdowns, isolation, and quarantine had an impact on the preferences of Cypriot homebuyers. It is apparent that moving forward there will be a new trend toward working from home and thus people will demand residential properties that will increase the balance between work and personal life, productivity, pleasure, and health.

The findings of this study suggest that the most important factor in homebuyers’ final choice continues to be its price; however, post-COVID-19 pandemic, homebuyers attribute more importance to security and privacy, presence of a garden or green area, space organization and number of bedrooms. All these attributes are a result of the confinement in houses during the lockdowns, during which they had the need to escape from the rest of the members to relax as well as to connect with nature, rather than other factors such as economic conditions or demographic changes. This study highlights that the increased importance of privacy, flexible layouts, and green spaces is directly linked to the experiences during the lockdowns. While some of these changes may be temporary, the shift toward remote working suggests that certain preferences, such as the need for home offices and adaptable living spaces, are likely to become permanent. This permanence is supported by the continued emphasis on these attributes even as lockdown measures have eased.

Given these findings, it is necessary for residential real estate professionals to adapt to these changes. Architects and urban engineers should focus on designing homes with more private spaces, flexible layouts, and green areas to meet the evolving demands of homebuyers in the post-pandemic world. Therefore, the need to rethink the design of residential properties is demonstrated as it is apparent that post-COVID-19 pandemic, homebuyers are keener on having a garden and views of green areas as well as on having more rooms to satisfy their everyday activities and preserve their privacy. It is evident that open-plan spaces may not be a preference in the future, as people will value more doors and walls to ensure their privacy. The additional rooms may not serve only one purpose, but they could be designed in order to be adapted based on households’ needs so that they could be converted to rooms of multiple purposes and transformed to an office during the day and a bedroom during the night. The results suggest that new housing should contain more capacity for private-use spaces for household members and at the same time should be designed with flexible and adaptive layouts to accommodate more activities. Households may find the opportunity to renovate their properties to reorganize their homes to better suit their needs using a series of adjustable walls and screens that would be used to segment open-plan spaces into more dedicated spaces.

Additionally, this research underscores the importance of sustainability in the real estate market. The pandemic has accelerated the demand for sustainable living features such as green spaces, natural light, and energy-efficient homes. These features are not only beneficial for the environment but also improve the quality of life of residents. As the real estate market continues to evolve, there are significant opportunities for innovation in sustainable design and construction.

Overall, this study provides an understanding of how the COVID-19 pandemic has influenced homebuyers’ preferences in Cyprus, offering valuable insights for shaping the future of the Cypriot real estate market. By highlighting the practical benefits for industry professionals and emphasizing the importance of sustainability, the research underscores the distinct characteristics and localized impact of the pandemic on the Cypriot housing market, informing tailored policy and market strategies. Despite similarities with other markets, the unique preference shifts and economic sensitivities in Cyprus demonstrate the importance of regional studies.