09.05.2024
Robust demand from domestic buyers remains the main driver, fueled in part by investment strategies such as buy-to-let projects. However, there was a decrease in the number of real estate purchase and sale transactions submitted by foreign buyers. In addition, compared to 2022, there was a decrease in the number of registrations of companies with foreign interests through the Company Promotion Department.
Residential property prices rose on a quarterly basis across all areas for the fourth quarter in a row and through the fourth quarter of 2023. In particular, an increase of 1.5% was recorded in Nicosia, 3% in Limassol, 2.5% in Larnaca, 2.7% in Paphos and 2.1% in Famagusta.
As for the annual changes in the CPI by district, an increase was recorded in all districts. In Nicosia, residential property prices increased by 5.1%, in Limassol by 10.7%, in Larnaca by 11%, in Paphos by 8.3% and in Famagusta by 9.5%.
Residential property prices are rising quarterly in all areas. In Nicosia they increased by 1.5%, in Limassol by 2.5%, in Larnaca by 1.2%, in Paphos by 1.7% and in Famagusta by 1.4%. On an annualized basis, residential prices real estate also showed growth in all areas. In particular, residential property prices in Nicosia, Limassol, Larnaca , Paphos and Famagusta increased by 5%, 6.5%, 7.7%, 2.6% and 10.9% respectively.
During the reporting quarter, the number of properties sold to domestic buyers increased by 21.5% year-on-year (2,437 compared to 2,005 in the fourth quarter of 2022), while the number of properties sold to foreign buyers decreased by 10.2% (1,611 compared to 1,794 in Q4 2022).
Demand from domestic buyers is due, among other things, to investments for rental purposes ( buy-to-let).
In 2024, more than 70% of the total value of transactions will be in residential real estate, while transactions with apartments will be significantly more expensive than transactions with houses.
Transactions with land (fields and plots) constitute the second largest category of transactions after residential real estate, but they occupy a smaller share of the real estate market (16% of total transactions).
In 2022 and 2023, the total value and number of residential real estate transactions exceeded 2019 levels, reflecting the dynamics of demand. As reported, the decline in the total value and number of residential real estate transactions in 2023 compared to 2022 (down 10% and 1.8%, respectively) may reflect changes in headquarters policies. In particular, if in 2022 the number of registrations of companies with foreign interest through the Company Assistance Department was 1640, then in 2023 a decrease was recorded: the number of registrations of companies with foreign interest reached 2863.
