PwC Cyprus presented its publication on the Cyprus land development market, entitled "Cyprus Real Estate Market - First Half in Review", at an event held in Nicosia on 19 November.
The event was attended by industry professionals, investors and other stakeholders who had the opportunity to get in-depth information on developments and prospects in the sector. The presentations analysed the statistics on sales, planning permits and price levels, while PwC’s specialised professionals analysed the performance of the sector geographically and by type of real estate during the first half of 2019.
According to the publication, the total value of real estate transactions in the first half of the year amounted to €2.5b, recording a 25% increase over the corresponding period of 2018. The residential real estate sector made up 77% of the total value of transactions in the first six months of year, amounting to €2b, while land transactions amounted to €0.4b. The city of Limassol continues to attract the biggest share of transactions, with 44% of the value of transactions. Paphos, which mainly attracts foreign buyers, followed in second place with 25%. Meanwhile, even though Nicosia attracted 21% of transactions in the first half of the year, the value of these transactions comprised a mere 15% of the total, thus recording the lowest average value of transactions compared with Limassol and Paphos.
The data show that there were 225 sales of luxury properties in total (residential properties ≥ €1.5m), recording a 68% increase compared with the same period last year. Furthermore, there were 2,482 sales to foreign buyers in the first half of 2019, compared with 2,187 in the corresponding period last year, marking an annual increase of 13%.
The increase in the value of new planning permits is also indicative of the momentum the sector has gained, having increased by 116% in the first half of 2019. The construction of new hotels appears to have contributed to this increase.
Despite the significant increase recorded in the first six months of the year, the 3rd quarter of 2019, paints an entirely different picture. The total value of transactions recorded a 35% decrease in Q3 2019, compared to the same period in 2018. Even though it’s too early to make any conclusions, there are indications that there may be significant instability and uncertainty in 2020.
Addressing the event, Head of Advisory at PwC Cyprus Mr Constantinos Constantinou said: “Our experienced and well-trained team of professionals offers our clients complete and specialised solutions tailored to their needs. In a rapidly changing environment where technology determines developments, we are always there to help our clients deal with any challenges they are facing.”
The edition is available online.