Cyprus: The Demand for High-End homes Continues to Grow.
By combining internal data with information from the Cyprus Land Registry, Cyprus Sotheby's International Realty's quarterly study "INSIGHTS" examines the performance of the island nation's residential real estate market in the first half of 2023.
The total number of real estate transactions in Cyprus is increasing, the research claims, reflecting the rising demand for property on the island from both local and foreign purchasers. As of the end of June 2023, there were 7,689 sales contracts, up from 6,263 at the same period previous year, according to the Cyprus Land Registry.
With 46.5% of all property purchases going to international purchasers, this is a 36.1% year-over-year increase in the proportion of sales to foreign buyers. With 36% and 35% of sales ascribed to international customers, respectively, Limassol and Paphos saw the majority of foreign purchases. Domestic sales increased by 13.1% year over year in the first half of 2023 as well.
Anastasia Yianni, CEO of Cyprus Sotheby’s International Realty
With a total of 2608 transactions, the number of property sales to non-EU nationals in the first half of 2023 than quadrupled from this time last year.
Germany, Austria, Poland, and Greece were the top EU nations purchasing real estate in Cyprus, according to a Cyprus Sotheby's International Realty survey. When considering non-EU purchasers, Cyprus was well-liked by buyers from the UK, Israel, Russia, and Ukraine. Demand from Russians and other non-EU nationals is mostly driven by the Permanent Residency via Investment Program, whereas purchasers from the UK and EU like Cyprus for its lifestyle, which includes its year-round sunny climate and competitive cost of living.
With 1,757 transactions, Cyprus' luxury real estate market also saw excellent growth in the first half of 2023. This industry accounted for 27% of all transactions, representing an increase of 12.6% over the previous year. Residential real estate transactions in Cyprus totaled EUR 1.7 billion in value in the first half of 2023. High-end homes represented 54.3% of the market's total transaction value, or EUR 936.2 million, showing a 0.7% year-over-year rise.
The high end real estate market has a moderate outlook due to recent legislative changes, including those to the VAT and the permanent residency program. Cyprus Sotheby's International Realty predicts a slight downward trend in the short to medium term following a very strong 2022.
Anastasia Yianni, CEO of Cyprus Sotheby’s International Realty, commented: “Cyprus’ high-end residential property market continues to demonstrate strong results. We have seen a stable demand for high-end residential property, both for houses and apartments, in all districts across Cyprus, from both domestic and international buyers. Whilst recent legislative changes may have led to some uncertainty in the market, the traditional Cyprus market drivers such as lifestyle opportunities, the residency program and the healthy ROI potential of Cyprus properties are in force, and will support the market in the long-term.”
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