Record property sales in Cyprus in 2022

The CyprusReal Estate and Land Development Region performed excellently last year, exceeding the 2019 figures. According to the latest figures from PwC Cyprus, the total value of transactions in 2022 amounted to €5.2 billion, an increase of 27% year-on-year. The total transaction volume amounted to 22,500, up 12% year-on-year and 31% higher than in 2019, even before the pandemic.

The districts of Limassol, Larnaca and Paphos showed double-digit growth in transaction volumes in 2022 compared to 2021 (respective increases of 18%, 23% and 31%). In contrast, the provinces of Nicosia and Famagusta showed a 6% and 1% decrease in transaction volumes respectively.

The biggest driver of the market last year was definitely apartments, with transactions reaching an amount of €2.1 billion, an increase of 42% compared to 2021. The increased demand seems to be partly due to the arrival of foreign companies that have chosen Cyprus as a location for their headquarters and the relocation of their operations and staff to the country, with a major focus on the coastal areas. The other part of the growth is due to steady demand in the domestic market.

The cancellation of the Cyprus Investment Program (effective November 1, 2020) has led to a reduction in activity in the luxury real estate sector (€1.5 million). In 2022, this sector showed a partial recovery, with a total of 220 luxury real estate transactions, which is an increase of 36% compared to the previous year and makes it clear that this sector remains active.

The most stable segment of the real estate market is residential units priced between €100,000 and €300,000. Transactions with residential units in the €100,000 to €300,000 range rose to 7,600 in 2022, an increase of 19% year-on-year. Compared to pre-pandemic levels in 2019, a 41% increase was recorded. This is mainly due to an increase in demand for first homes, increased investment activity in the rental housing sector (especially apartments), and the increasing demand of foreign buyers moving to Cyprus.

Despite the increase in demand for real estate, while transaction data suggests it, the number of building permits issued slowed down in the first 10 months of 2022 (latest available data), showing a 5% year-on-year decline. This is largely due to the continued rise in the cost of building materials in 2021 and 2022.