The real estate landscape in Cyprus is currently experiencing a period of steady growth and dynamism, driven in part by the country's robust economic performance, despite the global challenges posed by the pandemic. Here are some key trends and predictions for the real estate market in Cyprus for 2023:
Steady Growth
The Cyprus real estate market has shown a resilient growth trend, with property sales in September 2023 showing a 15% increase as compared to the corresponding month in 2022, totaling 1,336 sales [1].
In the first half of 2023, Cyprus recorded 7,689 real estate transactions amounting to EUR 1.7 billion, indicating a continuation of the growth trend observed since 2016, barring 2020 due to the pandemic [2].
Strong Performance of the Premium Segment
Premium real estate, defined as houses priced at 500 thousand euros and apartments at 200 thousand euros, has been particularly active. In the first half of 2023, 80% of transactions in this segment were for apartments and 20% for houses [3][2].
The premium segment constituted 23% of all transactions during the same period, with the cash turnover from premium property sales accounting for over half (54%) of the total market volume, amounting to 936.2 million euros [2].
Stable Residential Property Prices
Residential property prices are expected to remain steady in 2023 due to increased demand and the resilience of the island's economy [4].
Popularity of Limassol
Limassol has emerged as the most popular city for real estate transactions, accounting for 35% of all deals in 2023, followed by Paphos (23%), Larnaca (19%), Nicosia (18%), and Famagusta (5%) [2].
Limassol, being the largest port on the island, offers a wide range of premium properties, with more than half of the transactions in the 2nd quarter of 2023 being made with premium facilities [2].
Foreign Investment
The real estate market continues to attract foreign buyers from both EU and non-EU countries, bolstering the positive trend in property sales, with Cyprus offering unique opportunities for obtaining citizenship and residence permits through real estate purchases [5][2].
Performance Across Major Cities
Median prices for premium properties have shown varied trends across different cities. For instance, while median prices for such properties in Limassol decreased in Q2 of 2023 compared to the same period in 2022, Nicosia witnessed a positive trend with a 26% and 4% increase for houses and apartments respectively [2].
Resilient Market
Despite the challenges posed by the global pandemic and economic uncertainties, the Cyprus real estate market has emerged as a resilient powerhouse, marking the highest number of sales in over 14 years in 2022 and continuing the upward trend into 20236.
In conclusion, the Cyprus real estate market in 2023 continues to exhibit a positive trajectory with steady growth, particularly in the premium segment. The attractiveness of cities like Limassol, coupled with foreign investment driven by beneficial residency programs, are among the factors contributing to the buoyancy of the market. The stability in residential property prices and the resilience of the market amidst global challenges further underscore the robustness of the real estate sector in Cyprus.
Comentarios