12.04.2021
PwC Cyprus “Cyprus Property Market – 2020 Review” provides insight into the behavior of the Cypriot economy as a whole and reports on key developments in the property market. Particular attention is paid to the performance of the sector during 2020.
According to PwC, the real estate and construction sector continues to be one of the key pillars of the Cypriot economy. Its share in the gross value added (GVA) of Cyprus in 2020 was 17%.
The pandemic has taken its toll on real estate, as has the abrupt end of the citizenship by investment program in early November. But despite these factors, the volume of GVA decreased by only 1% during 2020. This shows the stability of the Cyprus property market and its importance for the economy of the state as a whole.
In 2020, there were 14,000 real estate transactions, while in 2019 – 17,200, which is 19% less. The value of transactions decreased by 32% to 3.0 billion euros compared to 4.4 billion euros in 2019. (These figures do not include asset swap debt and share sale transactions.)
A double-digit drop in property prices in 2020 has hit all parts of the island. The main losses occurred in Limassol and Paphos, the most popular areas for foreign buyers. Compared to 2019, prices in Paphos fell by 36%, and in Limassol by 47%.
Segment of elite residential real estate
According to PwC analysis, the number of luxury real estate sales (i.e., €1.5 million or more) was 176, down 45% from 318 properties sold in 2019.Transactions with elite objects were made in the amount of 400 million euros. The drop was 40% compared to 2019, when the sales value was 720 million euros.
PwC notes that the segment of luxury residential real estate in the market was focused on buyers with a “golden passport”. Termination of the scheme creates uncertainty for the segment. There is a growing need to reorient and transform developments that were intended for this market segment.
