articles | 08 May 2023

Cyprus property sales hit €1.7 billion in first quarter of 2023

The value of real estate sold in Cyprus during the first quarter of 2023 reached €1.7 billion, according to a report released by the Department of Land and Surveys.

In a separate announcement, the Council for Registration of Real Estate Agents noted that “the Cypriot property market remained resilient, despite the number of challenges and pressures that have accumulated and already begun to affect it”.

During the first quarter of the year, the real estate market demonstrated its resilience, as the value of properties sold reached €1.7 billion in a total of 6188 transactions. This figure matched the value of properties sold in the fourth quarter of 2022, which was the highest recorded in the previous year. Comparatively, in the first quarter of 2022, real estate worth €1.3 billion had been sold. “The strong performance of the property market should not be allowed to disorient any external viewers and obscure the big picture, where various problems continue to plague the Cypriot real estate,” council president Marinos Kineyirou said. “As we have warned many times in the recent past, inflation, rising interest rates, the increased costs of building materials and the new situation created by the reduced VAT rate of 5 per cent on first homes are putting downward pressure on the market and impacting demand,” he added.

According to the aforementioned report, the real estate market in Cyprus continued to show strength in the first quarter of 2023, with some districts outperforming others. The Nicosia district continued to show stability as both the value and volume of transactions increased slightly compared to the previous quarter, with transactions amounting to 1,597, with a total value of €257.5 million. However, the capital experienced a decrease in the value of real estate sales compared to the first quarter of 2022, when the total value of transactions amounted to €313 million.

Limassol, on the other hand, experienced significant growth in the real estate market, with the value of sales transactions exceeding €908 million in the first quarter of 2023, representing a considerable increase from €587 million in the corresponding quarter of 2022. What is more, although there was a small decrease in the value of transactions on a quarterly basis, it remained above €900 million for the second consecutive quarter, with a slight increase in volume.

Furthermore, the Paphos district also showed significant growth, with both the volume and value of transactions increasing annually and quarterly. The value of properties sold during the first quarter of 2023 in Paphos remained above €250 million for the third consecutive quarter, indicating that the district is still attractive to investors.

Larnaca is also experiencing growth, with a significant increase in the volume and value of real estate transactions on an annual and quarterly basis. In the first quarter of 2023, the value of properties sold in Larnaca exceeded €200 million, compared to €145 million in the corresponding quarter of 2022 and €160 million in the fourth quarter of the previous year.

The district of Famagusta also saw an increase in the value of properties sold in the first quarter of the year, with transactions totalling €57.3 million, compared to €54 million in the corresponding quarter of 2022.

Meanwhile, the four main property categories reflect the trends that prevailed in each district in the first quarter of 2023. According to the report, houses developed great momentum during the first quarter, with 931 sales recorded during this time. Indicatively, in the entirety of 2022, there were 2,175 house sales. The Paphos district continued to lead the market in house sales, with Larnaca following closely behind. In terms of apartment sales, both Paphos and Larnaca also lead the way, while Limassol is at the forefront of land and field sales, followed by Nicosia.

Source: Cyprus Mail

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