The interaction of market forces affects sales.

As we reported last week, March became the second highest month for real estate sales since records began in 2000. However, these figures are facing conflicting market forces. On one hand, Cyprus, which always "wins" in times of unrest in the region, is experiencing 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 corporate base in Cyprus (centralization). On the other hand, rising interest rates and increasing construction costs are deterring Cypriots from purchasing real estate, but some are trying to buy property before the approval and implementation of changes to the reduced VAT on housing. According to official statistics published by the Department of Land and Surveys, sales to Cypriots in the first quarter of this year increased by 12% to 1,868, compared to 1,732 in 2022 and 1,255 in 2019.

Analysis of the real estate market segment

Sales in the domestic market

Sales in the domestic market increased by 12% in March compared to March 2022, but Nicosia recorded a decline of 18%. Limassol reported the highest number of sales, followed by Nicosia, Larnaca, Paphos, and Famagusta.

Comparison of deals in the domestic market - 2022/2023

Sales in the domestic market in the first quarter of 2023 amounted to 1868, which is 12% more than in the same period last year, when 1732 units were sold.

Real estate sales to foreign citizens

Sales to foreigners (non-Cypriots) increased by 37% compared to March 2022, with sales rising in all areas except Famagusta and Nicosia, where they decreased by 40% and 8% respectively. Paphos ranked first in the number of sales, followed by Limassol, Larnaca, Nicosia, and Famagusta.

Comparison of real estate sales abroad – 2022/2023

In the first quarter of 2023, the number of overseas sales reached 1,706, which is 34% more than in the same period last year, when 1,277 properties were sold.

Real estate sales to EU citizens

Sales to EU citizens decreased for the fourth consecutive month in March, falling by 17% compared to March 2022, with sales declining in all areas except Larnaca and Limassol. Paphos ranked first in the number of sales, followed by Limassol, Larnaca, Nicosia, and Famagusta.

Comparison of real estate sales to EU citizens - 2022/2023

In the first quarter of 2023, the number of sales to EU citizens amounted to 446, which is 29% less than in the same period last year, when 628 properties were sold.

Sales of real estate to non-EU citizens

Sales to non-EU citizens increased by 78% compared to March 2022, with sales rising in all areas. Limassol and Paphos ranked first in the number of sales, followed by Larnaca, Famagusta, and Nicosia.

Comparison of real estate sales to non-EU citizens - 2022/2023

In the first quarter of 2023, the number of sales to non-EU citizens amounted to 1,260, which is 94% more than in the same period last year, when 649 properties were sold.