The Cyprus real estate sector contributed €3.24 billion to the Cypriot economy in 2019, according to the 11th edition of the KPMG ‘Cyprus Real Estate Market Report – The Insights’, up 16% compared to 2018.
The real estate sector’s contribution was higher than the combined contributions of the Financial and Insurance activities and the Manufacturing sectors and represented 17% of the Cypriot Gross Domestic Product in 2019.
High value residential property transactions (greater than €1 million) rose 18% in 2019 to reach 824, with Limassol taking the lion’s share – 488 (56%) of the total number of transactions.
The majority of high value real estate transactions (68%) concern properties valued between €1 million and €2 million; properties valued in the €2-3 million price band account for 26%; properties valued at €3 million or greater account for 3% of the high value transactions.
Apartments in the €1-2 million price band account for approximately one half of all the high value residential transactions and are mainly to be found in Limassol.
KPMG’s report notes that the real estate sector has recovered significantly since the introduction of the ‘citizenship-by-investment scheme‘ in 2013 and the demand for property by third country nationals that followed.
The report also notes that high value residential transactions suffered a significant decrease in the first quarter of 2020 compared to the first quarter of 2019, with apartment transactions and house transactions down 64% and 60% respectively.
Other notable real estate matters
A 13% increase in the number of building permits and an 81% increase in their value compared to 2018. (Limassol accounted for 30%of the number of building permits and 56% of their total value.
A 12% growth in the number of contracts of sale deposited at Land Registry offices compared to 2018.
Between 2013 and 2019 a Compound Annual Growth Rate (CAGR) of 63% in the number of high-value residential transactions.