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High-end Cyprus property sales boom

PwC Cyprus reports that 260 high-end properties in Cyprus (in excess of €1.5 million) were sold during 2017, which contributed to the wider recovery of the real estate industry and the rise in prices for the first time in several years.

High-end Cyprus property sales boomTWO HUNDRED AND SIXTY Cyprus properties were sold for more that €1.5 million during 2017 according to a report by PwC Cyprus – Cyprus Real Estate Market Year in Review | 2017.

PwC notes that The Cyprus economy relies heavily on the real estate sector, as Cyprus has one of the highest home ownership rates in Europe and there is a significant overseas market for holiday and second homes.

From 2014 onwards, there were signs of improved confidence in the Cyprus economy and the real estate market, leading to increased transaction activity in the market. A further significant increase was recorded in 2016 (Year-on-year increase of 43%) with a subsequent increase of 24% during 2017. The total number of contracts filed at the Department of Lands & Surveys  during 2017 reached an eight-year high of 8,734 (2016: 7,063).

During 2017, the highest volume of properties for which sale contracts were filed by foreign buyers, was recorded in Paphos (36%), followed by Limassol (34%) and Larnaca (16%).

The vast majority of sales to foreigners relate to residential properties. During the past few years, such sales have been increasing predominantly as a result of the revisions to the scheme for naturalisation of investors in Cyprus by exception.

Double-digit growth rates in foreign transactions were exhibited across all districts of Cyprus in 2017. The highest annual growth was recorded in Famagusta (61%), followed by Paphos (38%) and Limassol (33%).

Demand for hi-end residential Cyprus property

PwC reports that during the period 2010-2013, the volume of sales of high-end residential property (≥ €1.5 million) across Cyprus was stable, averaging around 41 units per annum.

From 2014 onwards and following revisions to the scheme for naturalisation of investors in Cyprus, demand for this type of properties has been increasing continuously.

During 2017, the total number of high-end residential transactions reached 260, which corresponds to an annual increase of 45% (2016: 179).

Hi-end sales distribution

Limassol continues to be the preferred location for high-end residential properties (approximately 52% of total transactions of 2017), followed by Paphos (36%) and Famagusta (9%).

Nicosia and Larnaca represent the least active districts, with total transactions among the two districts representing 3% of total (8 transactions).

As per Land Registry data, during 2017, 66% of high-end residential property transactions in Limassol related to apartments with the remainder 34% relating to villas. As regards Paphos, almost entirely high-end residential transactions recorded in 2017 related to villas.

The majority of transactions in the high-end residential segment across Cyprus is within the €1.5 -€2 million price band.

Demand for Cyprus properties in excess of €2 million continued to rise, largely as the result of the launch of new high-end residential developments in the market increasing the supply of units of this price range.

Further reading

Cyprus Real Estate Market Year in Review | 2017

Readers' comments

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  • Boom n Bust says:

    An EU Passport must be supplied instead of a title deed, assuming that the new regulations whereby all properties must be supplied with a title deed is not being applied of course.

    I don’t suppose many of these owner’s care about that because they are bound not to resell the property anyway as part of the “Citizenship for Investment” deal.

    How are they prevented from re-selling ? Do you know if an order not to re-sell is lodged against these properties at the Land Registry ?

    Ed: The Citizenship by Investment scheme requires the applicant to keep their investment for 3 years. I don’t know how this is monitored.

    As I understand the ever-changing scheme, the minimum investment is €2 million, which includes a property valued at least €500,00 (except where the investment is made in residential property, which has to exceed €2 million)

  • Richard says:

    Whoopee. Things are improving markedly for people with a ton of money. As long as no-one questions how some of if / most of it / all of it was made everything will be just fine.

    Oh – and here’s the fast-track queue for your passport – just carry on down the corridor past the brown envelope rack…

  • steve r says:

    Nice 3 bedroom apartment situated on the edge of the Limassol Marina. Comes complete with a valid Cypriot passport.
    A snip at only £2.3 million

  • Deanna says:

    @ Steve r: think we all know why and to whom these properties + passport are sold.
    When’s it going to stop???

  • steve r says:

    Were most of these properties bought by foreigners who are trying to obtain a Cyprus passport.

    Just a thought

    Ed: According to figures released last month the Cyprus government has extended around 3,300 passports to foreign investors and their family members in the past ten years.

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