The findings of the PwC Cyprus report on the real estate sector in Cyprus are very important.
The report shows that real estate sales in 2021 increased by 30% compared to 2020 and reached pre-pandemic levels (2019), indicating a general recovery in the sector.
At the same time, the provinces that traditionally rank first among foreign buyers, namely Paphos and Limassol, recorded a decrease in their sales in 2021 compared to 2019. This fact indicates that local demand continues to support the real estate sector, as significantly offset the decline in sales.
Total property sales
According to the Land Registry, documents on the sale of real estate in 2021 reached 10,347, while in 2020 – 7,968, and in 2019 – 10,366.
The figures show that in 2021, sales increased by 30% compared to 2020 and reached the pre-pandemic level, that is, the level of 2019, indicating a general recovery in the sector.
Sales by province
In 2022, in all provinces of Cyprus, the number of sales documents filed with the Land Registry increased by double digits compared to 2020.
The largest increase in property sales was recorded in Nicosia, 37% year-on-year, followed by Limassol with a 35% increase compared to 2020.
Comparing 2021 sales with 2019 sales, Paphos and Limassol, the provinces with the highest demand from foreigners, recorded sales declines of 31% and 5% respectively. In contrast, over the same period, Nicosia saw a notable increase of 41%, proving that local demand continues to support the market, thus offsetting the decline in sales at the expense of foreigners.
However, in terms of total sales in 2021, Limassol is in first place with a share of 32% and Nicosia is in second place with a share of 27% of the total.
Foreign property buyers
In 2021, foreigners purchased a total of 3,691 properties in Cyprus compared to 2,985 properties in 2020, representing an increase of 24%.
In January and February 2021, sales to foreigners were significantly lower compared to the corresponding months of 2020 (pre-pandemic period).
In addition, about 50% of properties purchased by foreigners during 2021 concern buyers outside the European Union.
In particular, Larnaca was the province with the highest percentage of non-EU buyers (61%).
For 2021, Paphos and Limassol are the provinces with the highest number of sales documents to foreigners, with shares of 31% and 30% respectively.
The two coastal provinces together account for almost 2/3 of the island’s total foreign trade.
In general, according to the Land Registry, in all provinces of Cyprus in 2021, compared to 2020, an increase in the number of property purchases by foreigners was recorded.