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According to a report by Danos/BNPRE Group, the Cyprus property market remains resilient despite the challenges.
In the second half of 2023, real estate sales have increased by 23% compared to the second quarter of the same year, reaching a 15-year high of 7,689 transactions. In the second quarter alone, 5,974 transactions have been completed for a total value of €1.52 billion.
The total number of sales contracts for 2023 is expected to exceed 15,000, breaking the previous 2022 record of 13,409.
In comments to the Financial Mirror, Panos Danos, CEO of the Danos/BNPRE group, said that the Cyprus property market is experiencing a significant recovery, despite economic uncertainty arising from the energy crisis and regional conflicts.
“There is resilience of the real estate market and increasing challenges that consciously arise and should not be underestimated.The real estate sector significantly contributes to the Cypriot economy, and it is crucial for the government to find ways to support and maintain its momentum,” said Danos.
He noted that there was a decline in both the value and volume of transactions compared to the first quarter, urging the sectors stakeholders to remain vigilant.
Nicosia and Famagusta were the only areas where property values have increased in the second quarter compared to the first quarter. Despite the decline in the volume of sales transactions, Nicosia has recorded a value of €299.8 million, while Famagusta saw an increase in both the value (€59.7 million) and the volume of sales transactions (303).
Limassol has experienced a significant decline, with the value of properties sold falling by €200 million compared to the first quarter, reflecting a significant decline in sales volumes.
Paphos and Larnaca saw a decline in the property market in the second quarter. Paphos has experienced a larger decline in both value and volume of sales compared to the previous quarter, while in Larnaca the volume of transactions has increased but the value of properties sold was slightly lower.
Apartments remain the driving force of the market, with growing interest from foreign companies relocating their operations and staff to the island, especially in coastal areas. The data shows that 9,000 apartments were sold during the year, representing an annual increase of 29%.
The Cyprus housing market continues to grow, supported by strong domestic demand and the return of foreign investors.
The nationwide residential property price index has risen by 7.42% (+5.41% inflation-adjusted) in the year to the second quarter of 2023, with a quarterly increase of 1.46% (+1.15% inflation-adjusted) in the second quarter of 2023.
Overall, the property market in Cyprus remains dynamic, supported by both internal and external demand.
Source: Cyprus Property News
