12.08.2022
Strong demand in the Cypriot real estate sector is being met by numerous costly investments, with the lion’s share coming from the Limassol area, the Real Estate Agents Registration Board said on Thursday.
“The dynamic momentum that has developed in the Limassol real estate sector has not abated in the second quarter of 2022,” the council said, noting that Limassol accounted for a whopping 46.5% of the total value of transactions made in Cyprus during this time.
The above figure was calculated by the Real Estate Agents Registration Board using comparative sales data provided by the Department of Lands and Surveys.
“The development of Limassol and its transformation into a business center in recent years, with the city recently becoming a key destination for international technology companies, helps to maintain the momentum of the sector even after the end of the Cyprus citizenship by investment program,” the council explained.
According to the data of the land cadastre for the second quarter of the year, most of the transactions in the real estate sector concerned apartments, during this time 450 transactions were made.
The total value of the transactions, which included sales and the filing of documents for the transfer of ownership, amounted to about 126 million euros.
Their estimated average sale price was approximately €280,000, with transactions ranging from properties worth less than €100,000 to others valued in excess of €1 million.
As for houses, about 50 transactions were concluded for a total of 37 million euros.
“The average sale price was 770,000 euros, indicating that some were high-end homes and some were indeed classified as mansions,” the council said in a statement.
In addition, the council noted that the value of commercial real estate transactions was significantly lower than residential real estate, with about 15 million euros spent on shops and offices.
“While transactions related to commercial buildings may have been included in other categories, such as land under development, the trend does indicate that for commercial developments, interest is primarily in rentals, which is another reason why which rents are on the rise,” said Marinos Kineiirou, President of the Board of Registration of Real Estate Agents.
“Builders will have to adapt their development plans to meet this increased demand,” he added.
In addition, the total value of land transactions was also significant, with around 127 million euros spent on 120 transactions.
“Numerous land deals show that developers are in the process of planning and developing new projects to meet increased demand, which currently exceeds supply for many property categories, including both offices and apartments,” Kineiro concluded.
