2023 record year for property sales in Cyprus! No Changes Expected in 2024
2023 record year for property sales in Cyprus! No Changes Expected in 2024
Cyprus Real estate market x-ray
The report examines issues such as the continuous increase in prices and interest rates, and their impacts.
According to the study’s results, 2023 was a new record year for the real estate sector in Cyprus. The market closed with a total of 25,400 transactions with a total value of €5.6 billion.
The upward trend is mainly due to transactions in residential properties, which accounted for 61% of the total value of transactions in the sector, reaching €3.4 billion from 13,200 transactions.
The average transaction value for 2023 was €259 thousand compared to €257 thousand in 2022. The slight increase largely came from new properties, representing 69% of total residential sales.
Next are land transactions (plots and parcels), valued at €1.9 billion through 11,200 transactions, accounting for 34% of the total sales value, remaining generally stable compared to 2022 in terms of transaction value but with a higher number of transactions.
The average transaction value for land in 2023 was €168 thousand compared to €175 thousand in 2022. The decrease is partly due to the higher volume of transactions in Nicosia and Larnaca, where the average transaction value historically is lower than that of Limassol and Paphos.
Finally, commercial property transactions, although lower in number compared to 2022, were higher in value, reaching €121 million, equal to 2% of the sector’s total value.
The average transaction value for property sales in Cyprus! In 2023 was €238 thousand compared to €262 thousand in 2022. The decrease is partly due to fewer transactions in new properties in Limassol .
Limassol Real Estate Leads in Transactions
While all other cities, except Larnaca, recorded marginally lower sales values compared to 2022.
Larnaca presented a remarkable increase in the value of transactions compared to 2022 (28%), attributed to both the increase in transaction volume and the higher average property value.
Importantly, Larnaca has seen growth for the third consecutive year, almost doubling both in transaction value and volume since 2020.
Ratio of Foreign and Local Buyers
The ratio between domestic and foreign property buyers remained generally stable from 2018 to 2023, at approximately 55% domestic and 45% foreign. The only exceptions were 2020 and 2021, heavily impacted by COVID-19 and related travel restrictions.
Historically, Nicosia and Limassol attracted the highest volumes of domestic buyers. However, Larnaca and Paphos also saw increased volumes in 2023 due to ongoing development efforts.
Limassol and Paphos continue to attract the highest volumes of foreign buyers, while Larnaca also recorded record growth in 2023. However, the profile of foreign investors varies among these cities, with Paphos attracting more investments related to holiday homes, while Limassol and Larnaca attract a more balanced mix of residential and commercial properties for investment.
No Changes Expected in 2024
The report also presents the results of a survey conducted by Deloitte Cyprus for the real estate sector, conducted among industry professionals.
From the survey, it is evident that no significant changes are expected in the real estate landscape in 2024, such as financing costs and capital availability, as well as sales and rental price levels.
Also, according to the survey results, apartments are expected to remain the most attractive investment opportunity over the next 12 to 18 months, despite participants’ estimates that luxury apartments in high-rise developments are likely to decrease.