Cyprus property sales soar in 2022

Transaction volumes in the Cypriot real estate and land development sector last year surpassed those of 2019. According to the most recent PwC Cyprus publication, the total value of transactions in 2022 came to 5.2 billion euros, representing a 27% annual increase. 

The total transaction volume was 22,500, a 12% increase year-on-year, surpassing even pre-pandemic levels of 2019 by 31%. The districts of Limassol, Larnaca and Paphos saw double-digit growth rates in transaction volume in 2022 compared to 2021 (increases of 18%, 23%, and 31%, respectively). In contrast, the Nicosia and Famagusta provinces saw respective drops of 6% and 1%.

Apartments were undoubtedly the driving force of the market last year, with €2.1 billion in transactions recorded, representing a 42% increase over 2021. The increased demand appears to be partly due to the arrival of foreign companies that chose to establish their headquarters in Cyprus and relocate their operations and staff to the country, with a focus on coastal areas. The other part was because of resilient domestic demand. Apartment transactions reached 9,000 in 2022, up from 7,000 in 2021, a 29% increase.

The cancellation of the Cyprus Investment Program (effective November 1, 2020) reduced activity levels in the luxury property sector (€1.5 million). In 2022, this sector saw a partial recovery, with a total of 220 luxury real estate transactions, registering 36% annual growth and indicating that this sector remains active. Residential units worth €100,000 to €300,000 appear to be the most resilient segment of the real estate sector. Residential unit transactions ranging from €100,000 to €300,000 reached 7,600 in 2022, representing a 19% increase year-on-year. In 2019, there was a 41% rise over pre-pandemic levels. This is primarily due to increased demand for first homes and increased investment activity in rental housing (particularly for apartments), as well as increased demand from foreign buyers relocating to Cyprus.

Despite the rise in demand for property, as evidenced by the transaction data presented, the rate of building permit issuance slowed during the first 10 months of 2022 (latest available data), registering a 5% annual decline. This is largely due to the continued increase in construction material costs in 2021 and 2022.