Real estate declines due to rising interest rates and inflation

Real estate transaction volume reached €1.52 billion in the second quarter of 2023, with the market exposed to higher interest rates, inflation and rising construction costs.

According to data compiled by the Real Estate Agents Registration Board, real estate transactions totaled more than €1.7 billion in the two previous quarters. Council president Marinos Chineiro said that the real estate market is showing resilience, but "the challenges are getting greater and should not be underestimated by anyone." "The real estate market is a major contributor to the economy and the government must strengthen the sector to maintain its momentum," he added.

According to the data, the total number of deals amounted to 5,974 for €1.52 billion, down compared to the first quarter in terms of both volume and number of deals. Compared to the second quarter of 2022, the number of deals remained roughly the same, but the value increased significantly due to price increases.

The volume of real estate sold in the second quarter of last year amounted to €1.2 billion. Only Nicosia and Famagusta recorded an increase in the value of properties sold in the second quarter compared to the previous quarter.

A significant decline was recorded in Limassol; the value of properties sold decreased by €200 million compared to the first quarter, reflecting a significant drop in sales volume. Paphos also lost ground in terms of value and sales volume compared to the previous quarter. In Larnaca, transaction volume in the second quarter was higher than in the first quarter, but property values declined slightly.