20.04.2023
Annual real estate transactions continued to rise in the first three months of the year as sales documents submitted are 51.1% higher than in the same period prior to COVID 2019.
According to the latest data from the Land Registry, sales documents filed in the first quarter of 2023 totaled 3,574 units, up from 3,009 in the first quarter of 2022, representing an annual increase of 18.8%.
The latest boom in the island’s real estate sector has been associated with the relocation of high-tech firms and their employees.
Sales to foreigners rose 33.6% in the first quarter to 1,706, up from 1,277 in 2022. Compared to 2019, sales to foreigners increased by 53.6%.
This year, the number of local buyers was 1,868 compared to 1,732 in 2022 and 1,255 in 2019. Industry experts believe that strong overseas investment interest in the Cypriot property market continues to drive growth, pushing property prices up for the second year in a row.
At the same time, the increase in interest rates acts as a deterrent for the domestic market, slowing down Cypriot buyers.
Avalanti Tower , designed by Ghelamco Group , located close to the Limassol marina , specifically at the corner of Omonias and Franklin Roosevelt avenues. In total, the business center will have 12 floors and will be 5,000 sq.m.
Panos Danos FRIX, CEO of DANOS International property Consultants & Valuers , confirmed the increased demand from high-tech companies moving to Cyprus and their employees. “Increased mobility in the market is facilitated by the relocation of the headquarters of companies to Cyprus, which leads to higher prices and rents,” Danos said . “While the Cyprus property market is showing a significant recovery, the uncertainty caused by the energy crisis makes the market a challenging playing field for locals.”
An experienced real estate agent noted that the increase in construction costs by more than 20% and rising mortgage rates have prompted Cypriot households to think twice before borrowing money to buy their dream home, as demand for mortgages has fallen.
“Larnaca Boom”
The largest annual increase of 33.6% was recorded in Larnaca , where 684 trade documents were registered in the first three months, compared to 512 last year.
It is followed by Paphos, where sales rose by 33.1%, reaching 869 from 653. There was also an increase in property sales of 28.9% in the Famagusta area and 22.8% in Limassol , but in Nicosia, sales fell by 14.7 %.
According to March data, the number of sales documents filed was 1,352, up from 1,102 in March 2022, representing a year-over-year increase of 23%.
