23.03.2022
The Cyprus property market is in constant flux and real estate trends come and go. Given the highly local nature of the industry, with different conditions in each province/city, municipality/community and region, it is almost certain that conditions cannot remain stagnant for long. In addition, the real estate sector, like the economy as a whole, tends to be cyclical with periods of growth and periods of decline.
Understanding the fundamental variables that affect market volatility (e.g., existing demand, available stock, interest rates, inflation, disposable income, etc.) goes a long way in building the right knowledge and helping you better predict change. Combining mapping these elements with a study of historical data can reveal many dynamics that are not as obvious as the real resilience of the entire industry.
Despite particularly negative conditions in the global and domestic economy, the property sector in Cyprus has shown remarkable resilience in 2021, especially compared to the previous year. At the national level, 10,763* transactions were recorded, which for the purposes of this analysis are limited to the following categories only:
• Frame
• Apartments
• The shops
• Offices
• Plots and fields
with a total value of €1.64 billion (excluding restructuring and other forced transactions). Compared to 2020, the number of transactions increased by 22% and by 21% in value. The largest decline in transactions was recorded in the first two months of the year and, especially, in January, when they reached 38% in number and 51% in volume.The following months saw mostly positive year-on-year performance. The largest increase compared to the corresponding month of 2020 was recorded in April, where it reached 497% in number and 407% in volume.
December saw the highest sales of the year both in terms of quantity (1,368) and value (290 million euros). In figures, the largest number of sales in December was registered in the Nicosia district (408), and in value terms – in the Limassol district with 359 sales for 128.5 million euros. Next comes the Paphos region with 59 million euros. in 321 sales, the province of Larnaca with €31 million in 216 sales and the province of Famagusta with €9 million in 64 sales.
* (the analysis concerns only the types of real estate described above. Without taking into account restructuring and other forced transactions)
