23.12.2023
The Cyprus property market remains resilient and is on track to have its best performing year since 2008, according to a Danos /BNPRE Group report.
The report, covering the second semester of 2023, shows sales growth of 23% compared to the second quarter of the same year, reaching a 15-year high of 7,689 sales. The total number of projected sales contracts for 2023 is expected to exceed 15,000, surpassing the previous record of 13,409 in 2022.
In the second quarter, 5,974 real estate transactions were completed for a total amount of 1.52 billion euros.
Panos Danos, CEO of Danos /BNPRE Group, said that the Cyprus property market is experiencing a significant recovery despite economic uncertainty resulting from the energy crisis, the conflict between Russia and Ukraine and the recent conflict between Israel and Hamas. “The real estate sector makes a significant contribution to the Cyprus economy and it is critical for the government to find ways to support and maintain its momentum,” Danos said. He noted that there was a decline in both the value and volume of transactions compared to the first quarter, urging sector stakeholders to remain vigilant.
Year-on-year, transaction volume remained similar to the corresponding period in 2022, while the value of properties sold increased significantly to €1.2 billion.
Nicosia and Famagusta were the only areas where property values increased in the second quarter compared to the first quarter.
Despite the decline in the volume of sales transactions, Nicosia recorded a value of EUR 299.8 million, while Famagusta recorded an increase in both the value (EUR 59.7 million) and the volume of sales transactions (303).
Limassol experienced a significant decline, with the value of properties sold falling by €200 million compared to the first quarter, reflecting a significant decline in sales volumes.
Paphos and Larnaca saw a decline in the property market in the second quarter. Paphos saw a larger decline in both the value and volume of sales compared to the previous quarter, while in Larnaca the volume of transactions increased but the value of properties sold was slightly lower.
Apartments remain the driving force of the market, with growing interest from foreign companies relocating their operations and staff to the island, particularly in coastal areas. The data shows that 9,000 apartments were sold during the year, representing an annual increase of 29%.
Sales in the Cyprus housing market continue to grow, supported by strong domestic demand and the return of foreign investors.
The nationwide residential property price index rose 7.42% (5.41% inflation-adjusted) in the year to the second quarter of 2023, with a quarterly increase of 1.46% (1.15% inflation-adjusted) in the second quarter 2023.
Overall, the property market in Cyprus remains dynamic, supported by both internal and external demand.
