Real estate sales in 2022 generated an income of €6 billion.

Despite the fact that the real estate market generated sales amounting to 6 billion euros in 2022, real estate agents are expecting a challenging 2023. In the latest issue of the "Quarterly Real Estate Market Bulletin" from the Cyprus Council for the Registration of Real Estate, it was noted that the value of sold properties last year was 5.85 billion euros. The Council expressed satisfaction, stating that "despite the challenges, the real estate sector has shown resilience and dynamism, which was most vividly reflected in comparative sales."

According to the Real Estate Registry, 22,129 transactions were registered in 2022, totaling 5.85 billion euros. The fourth quarter of 2022 was the best of the year, with real estate sold for 1.7 billion euros in 5,883 transactions. In the third quarter of 2022, transactions amounted to 1.65 billion euros, while in the second quarter, the total was 1.2 billion euros, and in the first quarter, it was 1.3 billion euros.

The President of the Real Estate Agents Registration Council, Marinos Kineyrou, stated: "The real estate sector has managed to grow and develop during an extremely challenging period. However, a number of challenges are expected, related to inflation, rising interest rates, the cost of building materials, and new realities concerning the reduced VAT rate of 5% for primary housing, which will impact demand."

Limassol

Limassol recorded the highest sales volume - 6,945 real estate transactions worth 2.86 billion euros.

Nicosia

Following it is Nicosia with 6,237 transactions totaling 1.2 billion euros.

Paphos

The real estate sector in Paphos has significantly grown, both in the number of transactions (3,593) and in their total value, which amounted to 890.4 million euros.

Larnaca

In Larnaca, 4,160 transactions were made for a total of 666.2 million euros.

Famagusta

In Famagusta, there were 1,194 transactions totaling 238.4 million euros.

In previous comments to Financial Mirror, Panos Danos, CEO of DANOS International Property Consultants & Valuers, stated that he expects stability in 2023, as the inventory of real estate is expected to remain relatively high.

Danos said that the real estate market and prices will depend on supply and demand, as buyers still consider the real estate market a reliable investment. "However, buyers and sellers will need time to realize the new norms, likely the first quarter of 2023, and adjust to the new prices. A risky but reasonable long-term forecast is that in 2024, it is unlikely to expect a significant improvement in prices or interest rates."