The impact of conflicting market forces on sales.

As we reported last week, March became the month with the highest number of real estate sales since2000. But these figures are confronted with conflicting market forces. On the one hand, Cyprus, which always "wins" from problems in the region, has a strong interest from foreign investors due to Vladimir Putin's war in Ukraine as well as government incentives to attract foreign companies to establish their headquarters in Cyprus. On the other hand, higher interest rates and increased construction costs are deterring Cypriots from buying property, but some are seeking to purchase before changes are made to the reduced VAT on housing, which will be agreed upon and implemented.

According to the official statistics published by the Department of Lands and Surveys, sales to Cypriots in the first quarter of the current year increased by12%, reaching a total of1868 sales, compared to1732 in2022 and1255 in2019. Sales to foreigners grew by34% in the first quarter, with a total of1706 sales, compared to1277 in2022 and1111 in2019.

Analysis of the real estate market segment

Domestic sales. Domestic sales in March increased by 12% compared to March 2022, but with a drop of 18% in Nicosia. Limassol recorded the highest number of sales, followed by Nicosia, Larnaca, Paphos and Famagusta. Comparison of domestic market transactions - 2022/2023. Domestic market sales in the first quarter of 2023 totaled 1,868, a 12% increase compared to the same period last year.

Real estate sales to foreign citizens

Sales to foreigners (non-Cypriots) increased by 37% compared to March 2022, with sales increasing in all districts except Famagusta and Nicosia, where they decreased by 40% and 8% respectively.

Real estate sales to EU citizens

Sales to EU nationals fell for the fourth consecutive month in March and were down 17% on March 2022, with sales declining in all districts except Larnaca and Limassol. Paphos ranked first in the number of sales, followed by Limassol, Larnaca, Nicosia and Famagusta. Comparison of sales to EU citizens - 2022/2023. For the first quarter of 2023, the number of sales to EU citizens amounted to 446, which is 29% less than in the first quarter of last year.

Real estate sales to non-EU citizens

Sales to non-EU citizens rose by 78% compared to March 2022, with sales increasing in all districts. Limassol and Paphos recorded the highest number of sales, followed by Larnaca, Famagusta and Nicosia. Comparison of sales to non-EU citizens - 2022/2023. For the first quarter of 2023, the number of sales to non-EU citizens amounted to 1,260, a 94% increase compared to the first three months of last year.