Real estate sales bring in €6 billion in 2022

Despite the real estate market generating sales worth €6 billion in 2022, real estate agents are expecting a challenging 2023.

The Cyprus Real Estate Registration Board reported in its quarterly Real Estate Market Bulletin that the value of real estate properties sold last year amounted to €5.85 billion. The Council expressed satisfaction, noting that "despite the difficulties, the real estate sector has shown resilience and dynamism, which is reflected in comparable sales".

According to the Land Registry, 22,129 transactions totaling €5.85 billion were recorded in 2022. The fourth quarter of 2022 was the best quarter of the year as it saw €1.7 billion worth of properties sold in 5,883 transactions. The registry recorded transactions worth €1.65 billion in the third quarter of 2022, compared to €1.2 billion in the second quarter and €1.3 billion in the first quarter.

The President of the Real Estate Agents Registration Board, Marinos Chineiro, said, "The real estate sector has been able to develop and grow during an extremely difficult period. However, a number of challenges related to inflation, rising interest rates, the cost of building materials and new realities regarding the reduced 5% VAT rate on principal residence are expected to affect demand. "

Limassol was the leader in terms of sales volume with 6,945 transactions worth €2.86 billion. It is followed by Nicosia with 6,237 transactions totaling €1.2 billion. The real estate sector in Paphos grew significantly in terms of both the number of transactions (3,593) and their total value, which amounted to 890.4 million euros. In Larnaca, there were 4,160 transactions worth €666.2 million, while in Famagusta 1,194 transactions were worth €238.4 million.

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

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"This is not bad news because the more inventory, the more options for buyers and the more opportunities for price reductions. However, mortgage interest rates will remain high and banks will continue to find it difficult to match loans. This probably means that sellers may make less profit, but they are still likely to make a profit nonetheless. It is unlikely that 2023 will be a major breaking point for the real estate market in Cyprus. There is not expected to be a surge in buyer demand and sellers are not expected to change prices dramatically. "

Danos said the real estate market and prices will affect supply and demand as buyers continue to view the real estate market as a safe investment for their money. "However, buyers and sellers will take some time to realize the new regulations, probably the first quarter of 2023, and to process the new adjusted prices. The risky but reasonable long-term outlook is that significant improvements in prices or interest rates are unlikely in 2024. "