16.05.2022
The Cyprus property market is in constant flux with mixed trends in property prices. Given the highly localized nature of the industry, with different conditions in each province/city, municipality/community and region, it is almost certain that conditions cannot remain stagnant for long.
In addition, the real estate sector, like the economy as a whole, tends to be cyclical with periods of growth and periods of decline.
Understanding the fundamental variables that affect market volatility (such as existing demand, available real estate stock, interest rates, inflation, disposable income, etc.) goes a long way in getting the right knowledge and helping you better predict change. Combining a comparison of these elements with a study of historical data can reveal many factors that are not so obvious, such as the true sustainability of the entire industry.
Despite particularly negative conditions in the global and domestic economy, the property sector in Cyprus showed remarkable resilience in the first quarter of 2022, especially compared to the previous year. At the national level, 2,202 transactions were registered for a total value of EUR 306 million (excluding restructuring and other forced transactions).
*For the purposes of this analysis, they are limited to the following five main categories only:
Residences
· Apartments
· The shops
Offices
Plots and fields
Compared to 2021, the number of transactions increased by 10.3% and the value by 28.6%. The largest decrease in the number of transactions was recorded in March, where it reached 6%, however, in value (in the same month) an increase of 14% was recorded. The first quarter of 2022 was largely positive year-on-year. The largest increase compared to the corresponding month of 2021 was recorded in January, where it reached 47% in number and 65% in volume.
March saw the highest quarterly sales in both quantity (856) and value (€126m). The largest sales for the quarter were recorded in the Nicosia area, where there were 743 sales worth €107 million. in price. Next comes the Limassol area with 87 million euros. in 614 sales, Larnaca district with €48 million; in 403 sales, Paphos district, for €51 million. in 345 sales and the Famagusta area with 13 million euros. in 97 sales.
*(the analysis concerns only the types of property described above. With the exception of restructurings and other forced transactions)
