28.10.2023
Despite numerous challenges, primarily related to rising interest rates on loans, ongoing inflation, the consequences of the war in Ukraine and the ongoing turmoil caused by the coronavirus pandemic , the Cyprus property market continues to develop.
Delfi report Analytics on the dynamics of the real estate market in Cyprus, from January to August 2023, about 11,655 real estate purchase and sale transactions were concluded in Cyprus for a total value of almost 2.8 billion euros.
Comparing this period with the same period of the previous year, there was a significant increase in property sales to foreign buyers by 31%. Notably, 46% of document registrations in the first eight months of 2023 came from foreign buyers, highlighting the market’s attractiveness to international investors.
George Foucarides , director of Delfi Properties , explained that “despite the ongoing challenges that are beginning to impact it, the Cypriot property market continues to demonstrate remarkable resilience. Both domestic and international demand for real estate remains virtually unchanged,” he added.
Although real estate sales in the first eight months of 2023 are slightly lower (-2.8%) compared to the same period the previous year, overall values were up 7.1% due to rising property prices.
the Limassol area recorded 3,384 property sales, an increase of 0.6% compared to the same period in 2022.
In contrast, the Nicosia area saw a significant decline in sales volumes of 12.9%, while the Larnaca area , where 2,361 properties were sold, recorded an increase of 10.3%.
Property sales in the Paphos and Famagusta areas decreased by 4.7% and 1.9% respectively.
“At a regional level, Limassol continues to have a significant impact on the Cypriot property market,” said Foucarides . “It is also noteworthy that foreign interest continues to grow, while local buyers appear to be more cautious,” the Delfi director added Properties .
Meanwhile, Natasa Apostolou, Delfi Special Projects Manager Partners and Company , highlighted the attractiveness of Cyprus as an investment center.
“Cyprus, thanks to factors such as political stability and an attractive legal framework, is becoming one of the fastest growing investment destinations in Europe. The revival of the real estate sector is largely due to foreign capital,” she added.
“Rapid growth and the influx of foreign capital have led to rising property prices, as well as significant demand for luxury residences and Class A offices , as many foreign companies have moved their offices and staff to the island,” she added.
However, Apostolou noted that “balancing foreign investment with local needs is of paramount importance to ensure sustainable and long-term growth of the sector, especially at a time when rising inflation is burdening the economy.”
The value of properties sold in the Limassol area is slightly over €1.1 billion, representing 39.3% of the total value of property sales from January to August 2023. Nicosia saw property sales worth €567 million over the eight-month period, representing 20.3% of the total, while Paphos recorded property sales worth €479 million, representing 17.1%. In contrast, in the Larnaca and Famagusta areas , property sales amounted to €459 million and €185 million respectively.
An interesting point is the data on average real estate sales prices by area. Nicosia has the lowest average sale price at €180,000, which is significantly lower than Limassol , where the average sale price is €326,000. The average price in Nicosia decreased by -1.2% compared to the same period last year, while the average price in Limassol increased by 11.5%.
Meanwhile, the Famagusta area saw the biggest year-on-year increase in average sales price, soaring by 52.4% to €272,000. Paphos follows with an average of €230,000 and an increase of 14.4%.
Larnaca area , where the average sales price over the eight-month period was €194,000, is closer to Nicosia’s figures, although showing an increase of 8.3%.
