09.03.2024
PwC Cyprus’ annual report on the Cyprus property market, the number of residential property transactions valued at more than €1.5 million in 2023 decreased by 26% compared to 2022.
Figures show that this market segment recorded 164 transactions during the year, totaling €440 million. The contribution of this property category was capped at 8% of the sector’s total transaction value, its lowest contribution since 2013. The size of this segment of the property market appears to have halved from its peak in 2017-18, but has returned to levels seen during the pandemic.
Limassol continues to dominate luxury residential transactions , capturing 74% of the market in 2023, followed by Paphos with 15%. It is highlighted that these two cities account for 89% of the sector, up from 93% in 2022. Only 5% of the luxury housing market last year was occupied by Nicosia, 4% by Larnaca and 2% by Free Famagusta .
Sales of properties purchased by foreign buyers recorded an annual growth of 16% in 2023, reaching 6,900 properties compared to 5,928 in 2023. This is due to the continued decline in the number of foreign companies choosing to relocate their headquarters and staff to Cyprus.
All cities of Cyprus, with the exception of Free Famagusta , recorded an annual increase in the number of properties purchased by foreigners in 2023, as evidenced by data from the Department of Land Resources and Geodesy. The largest increases were observed in Larnaca (25%), Nicosia (21%), Limassol (16%) and Paphos (15%).
The highest concentration of trade documents involving foreign buyers was observed in Limassol and Paphos (34% respectively), with these two coastal cities together accounting for more than two thirds of transactions with foreigners.
When analyzing the monthly data, it is evident that the number of properties purchased by foreigners was higher than in every corresponding month in 2022, with the exception of November and December 2023, which saw a decrease of 16% and 18% respectively. This appears to be largely due to the war between Israel and Hamas in early October.
Some 72% of properties purchased by foreign buyers in 2023 are owned by non-EU nationals, up from 57% in 2022. Limassol was the city with the highest percentage of non-EU buyers (77%), followed by Larnaca (74%) and Paphos (70%).
