Cyprus Real Estate Market Shows Resilience Amidst Challenges

The real estate market in Cyprus is displaying resilience despite facing numerous challenges, including rising loan interest rates, persistent inflation, repercussions from the war in Ukraine, and the ongoing impacts of the COVID-19 pandemic. A recent report from Delfi Analytics, a member of the Delfi Partners Group, reveals that Cyprus witnessed approximately 11,655 property sales totaling nearly €2.8 billion from January to August 2023.

Comparing this period to the previous year, there is a substantial 31% increase in property sales to foreign buyers. Foreign buyers accounted for 46% of document registrations during the first eight months of 2023, underlining the market's appeal to international investors.

George Foukarides, Director of Delfi Properties, stated that "despite persistent challenges beginning to affect it, the Cypriot real estate market continues to display remarkable resilience," with both domestic and international demand remaining strong.

While the volume of property sales for the first eight months of 2023 is slightly lower (-2.8%) compared to the same period in the previous year, the overall value has increased by 7.1% due to rising property prices.

In terms of regional sales, the Limassol district recorded 3,384 property sales, reflecting a 0.6% increase compared to the same period in 2022. In contrast, Nicosia district experienced a significant 12.9% decrease in sales volume, whereas Larnaca district, with 2,361 property sales, registered a 10.3% increase. Property sales in Paphos and Famagusta districts decreased by 4.7% and 1.9%, respectively.

Foukarides emphasized Limassol's significant influence on the Cypriot real estate market regionally, noting that foreign interest continues to rise while local buyers are more cautious.

Cyprus is becoming one of the fastest-growing investment destinations in Europe, driven by factors like political stability and an attractive legal framework, according to Natasa Apostolou, Special Projects Manager at Delfi Partners and Company. The influx of foreign capital has led to increased property prices, with high demand for luxury residences and Grade A offices as foreign companies establish a presence on the island.

Despite the positive trend, Apostolou stressed the importance of balancing foreign investments with local needs to ensure the sector's sustainable and long-term growth, especially in the face of rising inflation.

The data also provides insights into 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. Famagusta district witnessed the most substantial increase in average sale price on an annual basis, skyrocketing by 52.4% to €272,000. Paphos follows with an average of €230,000 and a 14.4% increase, while the Larnaca district exhibits an 8.3% increase with an average sale price of €194,000.

By fLEXI tEAM