17.02.2023
In 2022, the Paphos real estate sector saw double-digit growth in sales, with transaction volume up 31% year-over-year, according to the latest release of PwC Cyprus Real Estate Market Analysis. on the real estate sector.
Paphos was one of only three areas to see double-digit annual property sales growth, the other two being Limassol, which grew by 18% year-on-year, and Larnaca, where property sales grew by 31%. on an annual basis. Nicosia, on the other hand, saw a 6% decline in sales, while Famagusta experienced a 1% year-on-year decline.
According to in-depth analysis by PwC, the total value of real estate transactions reached a record level of 5.2 billion euros in 2022, recording an annual increase of 27%.
In terms of sales volume, there were 22,500 transactions in 2022, up 12% from the previous year, and also surpassed pre-pandemic levels, up 31% from 2019.
According to the report, a total of 9,000 apartments were sold in 2022, up 29% from last year. Moreover, the report notes that the luxury residential property segment, valued at over €1.5m, remained active despite some adverse effects.
In 2022, 7,600 residential properties were sold, valued between €100,000 and €300,000, up 19% on last year and 41% more than in 2019.
“This is mainly the result of strong demand for primary housing and growing investment activity in private rental housing, especially apartments, combined with a growing level of foreign demand in the context of relocation to Cyprus,” the report says.
Moreover, the report notes that despite the rising level of demand for real estate, as evidenced by the sales data presented above, the issuance of building permits slowed down during the first ten months of 2022, recording a decrease of 5% year on year.
The company explained that this could be largely due to the continuous rise in material costs that persisted through 2021 and 2022, with prices rising by as much as 30% over the two-month period.
