KPMG has published the 9th edition of the ‘Cyprus Real Estate Market Report – The Insights‘, which summarises the key trends and major drivers of the Cyprus real estate market focussing on Q1-Q3 2018, the latest period for which data is available.
KPMG notes that overcoming the challenges of recent years, the Cypriot economy continued its positive growth in 2018, with GDP year-on-year growth expected to reach 4% (almost twice the EU average) and unemployment dropping to 7.5% in August 2018.
The positive economic growth has led to a series of upgrades of the Cyprus sovereign rating from international credit rating agencies; the latest upgrade to “Investment Grade” with a stable outlook was given by Fitch in October 2018, Cyprus’ first exit from “Non-Investment” grade since 2012.
Building permits continued their upward trend both in volume (+8%) and value (+20%) in the 1st half of 2018. Larnaca saw the biggest increase in volume (25%) and Famagusta in value (86%), when compared to the previous year.
Real Estate activity continued its upward movement in 2018, with Contracts of Sale increasing by 21%. Limassol had the biggest share (37%) of the market, while Famagusta the biggest increase (+37%) in sales. Non-Cypriots accounted for 48% of the overall number of contracts in 2018.
Notable Real Estate Matters, include the increase in the number of transactions for high value properties (more than €1 million) with a Compound Annual Growth Rate (CAGR) of 88% from 2013-2017. New building permits for hotels have grown 219% in terms of their square meterage during the first half of 2018 when compared to the first half of 2017. Bookings through AirBnB showed an increase of 49% for the first nine months of 2018.