Despite facing a series of hurdles such as climbing loan interest rates, ongoing inflation, the impact of the conflict in Ukraine, and the lasting effects of the COVID-19 pandemic, the Cyprus property market has been maintaining a strong performance.
The latest “Real Estate Dynamics in Cyprus” report by Delfi Analytics, part of the Delfi Partners Group, reveals that from January through August 2023, around 11,655 property transactions took place in Cyprus, reaching a cumulative worth close to €2.8 billion.
When this stretch is compared to the equivalent months in the prior year, there’s a notable 31% uptick in sales to international buyers.
Foreign buyers accounted for 46% of the property registrations in the first two-thirds of 2023, indicating the market’s strong pull for global investors.
George Foukarides, the Director at Delfi Properties, noted that “the Cypriot property market is demonstrating considerable durability despite facing increasing pressures.”
He observed that “the appetite for properties among both local and global buyers has largely stayed robust.”
Despite a slight dip (-2.8%) in the number of property transactions during the first eight months of 2023 compared to the same timeframe in 2022, the aggregate value saw a rise of 7.1%, attributed to escalating property prices.
Region-wise, the Limassol district witnessed 3,384 property deals, a slight increase of 0.6% from the previous year. Conversely, property sales in the Nicosia district fell by 12.9%, while sales in the Larnaka district, with 2,361 transactions, showed a 10.3% rise. Sales in the Paphos and Famagusta districts fell by 4.7% and 1.9%, respectively.
Foukarides highlighted, “Limassol remains a key driver in the Cypriot property sector.” He added, “There’s a growing interest from overseas, while domestic buyers are taking a more measured approach. “Natasa Apostolou, Special Projects Manager at Delfi Partners and Company, accentuated Cyprus’s emerging status as an investment haven.
“Cyprus is rising as one of Europe’s fastest-growing investment locales, thanks to political stability and an appealing legal environment. The property sector’s resurgence is largely fueled by foreign investment,” she stated.
She pointed out that “the surge in foreign capital inflows is pushing up property prices, with a marked demand for high-end homes and top-tier office spaces as numerous foreign firms relocate staff and operations to the island.”
Yet, Apostolou remarked that “maintaining a balance between foreign investments and local demands is crucial for the property sector’s sustainable and robust growth, especially under the weight of rising inflation.”
In the Limassol district, property sales just over €1.1 billion were recorded, comprising 39.3% of the total property sales value from January to August 2023.
In Nicosia, properties sold were valued at €567 million in this period, contributing to 20.3% of the overall sales, while Paphos reported transactions worth €479 million, representing 17.1%.
In contrast, the Larnaka and Famagusta districts saw sales of €459 million and €185 million, respectively.
Examining average property prices by district, Nicosia stands at the lower end with an average sale price of €180,000, markedly less than Limassol’s average of €326,000. Nicosia’s average price has seen a slight decline of -1.2% from the previous year, whereas Limassol has experienced an increase of 11.5%.
The Famagusta district recorded the most significant rise in average sale price year-over-year, surging 52.4% to €272,000. Paphos is next with an average of €230,000, marking a 14.4% rise.
Lastly, Larnaka’s average sale price for the period was €194,000, which, though closer to Nicosia’s, registered an 8.3% growth.
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