The real estate market is backed by foreign investors.

Despite numerous challenges, mainly caused by rising interest rates on loans, sustained inflation, the effects of the war in Ukraine and the ongoing unrest of the coronavirus pandemic, the property market in Cyprus continues to perform well.

According to the latest CyprusReal Estate Dynamics Report from Delfi Analytics, a member of the Delfi Partners group, between January and August 2023, some 11,655 real estate transactions were concluded in Cyprus for a total value of almost €2.8 billion. Compared to the same timeframe in the previous year, there is a significant increase of 31 percent in transactions with foreign buyers. It is noticeable that 46 percent of document registrations in the first eight months of 2023''year made by foreign buyers, highlighting the attractiveness of the market to international investors.

George Foukarides, director of Delfi Properties, explained that "despite the constant problems beginning to affect it, the Cypriot real estate market continues to show remarkable resilience." "Both internally and externally, demand for real estate remains virtually unchanged," he added.

Although real estate sales for the first eight months of 2023 are slightly lower (-2.8 percent) compared to the same period of the previous year, the total value increased by 7.1 percent due to rising real estate prices.

With regard to regional sales, there were 3,384 real estate sales in Limassol, which corresponds to''an increase of 0.6 percent compared to the same period in 2022. At the same time, Nicosia recorded a significant 12.9 percent decrease in sales volume, while the Larnaca area saw 2,361 properties sold with a 10.3 percent increase in sales volume. Property sales in the Paphos and Famagusta areas fell by 4.7 percent and 1.9 percent respectively.

"Regionally, Limassol continues to have a significant impact on the Cypriot real estate market," Foukarides said. "It is also worth noting that foreign investor interest continues to grow, while local buyers seem more cautious," added the director of Delfi Properties.

In the meantime, Natasa Apostolou, special projects manager at Delfi Partners and Company, emphasized''Cyprus' attractiveness as an investment center. "Driven by factors such as political stability and an attractive legal framework, Cyprus is emerging as one of the fastest growing investment destinations in Europe. The growth of the real estate sector is largely attributed to the inflow of foreign capital," she added.

Apostolu noted, however, that "balancing foreign investment with local needs is critical to ensure a sustainable and''long-term growth of the sector, especially in the face of rising inflation'.

The value of properties sold in Limassol is just over €1.1 billion, representing 39.3 percent of the total value of property sales between January and August 2023. In Nicosia, properties worth €567 million were sold in eight months, representing 20.3 percent of the total, while the Paphos area recorded sales worth €479 million, representing 17.1 percent. In contrast, Larnaca and Famagusta saw property sales of €459 million and €185 million respectively.

It is also interesting to see data on the average selling prices of real estate by district. In Nicosia, the average selling price is the lowest at €180,000, significantly''lower than in Limassol, where the average selling price is €326,000. The average price in Nicosia fell by 1.2 percent year-on-year, while the average price in Limassol rose by 11.5 percent. The Famagusta area then saw the largest year-on-year increase in average sale price, rising 52.4 percent to €272,000. Paphos followed with an average price of €230,000 and an increase of 14.4 percent. Finally, the Larnaca area, with an average property sale price of 194,000 over eight months, is closer to Nicosia's figures, although it has an 8.3 percent increase.