The market for luxury houses and apartments in 2021 remained stable, despite the termination of the investment program of Cyprus.
According to the PwC Cyprus Cyprus Property Market Report, there were 139 real estate transactions worth more than €1.5 million last year compared to 177 transactions in 2020, down 21%.
Less sales, higher cost
Luxury home sales value was €380m in 2021 compared to €400m in 2020, down 5%.
This fact shows that, although to a lesser extent, residential real estate transactions worth over EUR 1.5 million are, on average, more expensive real estate.
In particular, the average value of luxury real estate transactions in 2021 was 2.7 million euros, compared to about 2.3 million euros in 2020.
Eight out of ten real estate sales registered in Limassol
In total, it is estimated that one in ten property sales in 2021 (10%) is for high-quality luxury housing (≥ 1.5 million euros), compared to 13% in 2020.
The province of Limassol continues to lead the sale of luxury homes and apartments with 78% of the total, followed by Paphos with 13%.
Together, the two cities accounted for more than 90% of home sales worth more than €1.5 million.
As for other cities, Nicosia recorded only 5% of transactions, while Larnaca and free Famagusta took 2% each.
The first houses are always in demand
Perhaps the most enduring part of the real estate industry in both 2020 and 2021 has been residential property priced between €100,000 and €300,000.Overall, the residential sector in the €100,000 to €300,000 range accounted for 28% of total property sales in 2021, up from 26% in 2020.
This trend has been reinforced by strong demand for first homes and growing activity in the private rental home (private apartment) and rental markets. According to PwC analysis, the total number of residential properties in this price range reached 6,100 in 2021, up 33% from 2020.
It is emphasized that transactions recorded in 2021 were 13% higher than in 2019 (before the pandemic and before the end of the investment program), which indicates the resilience and growth of this segment of the real estate market.
In terms of transaction value, the residential sector between €100,000 and €300,000 was worth €1.1 billion in 2021, up 33% from 2020 and 15% more than in 2019.
Sales by city
Nicosia continues to account for the largest share of residential property transactions between €100,000 and €300,000 in 2021 (34% as of 2020), followed by Limassol (27% and 2020) and Larnaca (19 % out of 18%).
In Paphos, 15% (as in 2020) of property sales worth between 100,000 and 300,000 euros are recorded, and 5% are for sale in free Famagusta (from 6% in 2020).