Despite numerous challenges stemming primarily from rising loan interest rates, persistent inflation, the repercussions of the war in Ukraine, and the ongoing shockwaves of the coronavirus pandemic, the Cyprus real estate market continues to perform well.
According to the latest real estate dynamics in Cyprus report by Delfi Analytics, a member of the Delfi Partners Group, a total of approximately 11,655 property sales were concluded in Cyprus from January to August 2023, with a combined value of nearly €2.8 billion.
Comparing this period to the same timeframe in the previous year, there is a significant 31 per cent increase in property sales to foreign buyers.
Notably, 46 per cent of the document registrations during the first eight months of 2023 originate from foreign buyers, underscoring the market appeal to international investors.
George Foukarides, Director of Delfi Properties, explained that “despite persistent challenges beginning to affect it, the Cypriot real estate market continues to display remarkable resilience”.
“Both domestic and international demand for properties remains largely unaffected,” he added.
While the volume of property sales for the first eight months of 2023 is slightly lower (-2.8 per cent) compared to the same period in the previous year, the overall value has increased by 7.1 per cent due to rising property prices.
In terms of regional sales, the Limassol district recorded 3,384 property sales, reflecting a 0.6 per cent increase compared to the same period in 2022.
In contrast, Nicosia district experienced a significant 12.9 per cent decrease in sales volume, whereas Larnaca district, with 2,361 property sales, registered a 10.3 per cent increase.
Property sales in Paphos and Famagusta districts decreased by 4.7 per cent and 1.9 per cent, respectively.
“Regionally, Limassol continues to exert significant influence on the Cypriot real estate market,” Foukarides stated.
“It is also noteworthy that foreign interest remains on the rise, while local buyers appear to be more cautious,” the Delfi Properties Director added.
Meanwhile, Natasa Apostolou, Special Projects Manager at Delfi Partners and Company, highlighted Cyprus’ appeal as an investment hub.
“Cyprus, driven by factors like political stability and an attractive legal framework, is becoming one of the fastest-growing investment destinations in Europe. The revival of the real estate sector is largely due to foreign capital,” she added.
“The rapid growth and influx of foreign capital have led to an increase in property prices, with significant demand for luxury residences and Grade A offices, as many foreign companies have moved their offices and personnel to the island,” she added.
However, Apostolou noted that “the balancing of foreign investments with local needs is of utmost importance for ensuring the sustainable and long-term growth of the sector, especially as rising inflation burdens the economy”.
The value of properties sold in Limassol district slightly exceeds €1.1 billion, constituting 39.3 per cent of the total property sales value from January to August 2023.
In Nicosia, properties valued at €567 million were sold during the eight-month period, making up 20.3 per cent of the total, while Paphos registered property sales amounting to €479 million, accounting for 17.1 per cent.
In contrast, Larnaca and Famagusta districts had property sales of €459 million and €185 million, respectively.
An interesting aspect is the data concerning the average property sale prices by district. Nicosia has the lowest average sale price at €180,000, significantly lower than Limassol, where the average sale price is €326,000. Nicosia’s average price has decreased by -1.2 per cent compared to the same period last year, while Limassol’s average price increased by 11.5 per cent.
The Famagusta district, meanwhile, witnessed the most substantial increase in average sale price on an annual basis, skyrocketing by 52.4 per cent to €272,000. Paphos follows with an average of €230,000 and a 14.4 per cent increase.
Finally, the Larnaca district, with an average sale price of €194,000 for the eight-month period, is closer to Nicosia’s figures, although it exhibits an 8.3 per cent increase.
