Cyprus Property Market Review 2018

Cyprus Property Market Review 2018

In its annual Cyprus real estate market review, PwC reports that the transaction value of the residential property sector reached €3.1 billion, which accounted for 73% of the market total.

In 2018, the total number of properties transacted in Cyprus through the Department of Lands and Surveys (DLS) reached 15,800; a year-on-year increase of 1.9%. However, the total value of these properties is €4.2 billion which is 6% less compared to 2017 (€4.5 billion). Compared to 2013, when a mere 5,800 Cyprus properties were transacted, investments in Cyprus real estate almost quadrupled in 2018. 

Residential real estate

 
In 2018, the transaction value of the residential real estate sector, which comprised a total of 10,600 properties (6.900 apartments and 3.700 houses), reached €3.1 billion (73% of the market total). 
Limassol continues to absorb the majority of transactions, comprising 46% of the annual transaction value and 37% in terms of the number of properties sold. 

4,367 Cyprus properties were acquired by foreigners (as recorded by the number of sale contracts deposited at the DLS). 

The highest share as regards sale contracts filed by foreign buyers was in Paphos (40%), followed by Limassol (30%). The two coastal districts together make up 70% of foreign transactions. 

Approximately 67% of properties acquired by foreigners relate to non-EU buyers. In Limassol, 79% of foreign transactions relate to non-EU buyers, while non-EU buyer acquisitions in Paphos and Larnaca stood at 57% and 78% respectively. 

High-end real estate

 
Interest by foreign buyers, and predominantly by non-EU buyers, continued to be a driving force for the market. The high-end residential real estate segment (≥ €1.5 million) was primarily fuelled by the continuation of the government program encouraging investments in Cyprus. 

The total number of high-end residential property transactions reached 324 during the year corresponding to an annual increase of 2%. 

2018 transaction value stood at €810 million which is marginally higher than the €800 million in 2017. The high-end residential property segment represents 19% of the total Cyprus transaction value in 2018.