Cyprus realty sales reach €1.7 bln in Q1

The total value of properties sold in Cyprus in the year’s first quarter was 1.7 billion euros.

Despite the market facing facing numerous challenges, it has shown resilience, as indicated by the data presented in the quarterly “Real Estate Market Update” by the Real Estate Registration Board and Department of Land and Surveys.

In January-March the 6,188 realty transactions matched the total value of properties sold in the fourth quarter of 2022, which was the best of last year. In the first quarter of 2022, properties worth €1.3 billion were sold.

The president of the board, Marinos Kineyirou, stressed that caution is needed as “these performances should not distract and hide the big picture of the problems that plague the real estate market in Cyprus: Inflation, the rise in lending rates and construction material costs, and the new data with the reduced VAT rate of 5% for first homes are exerting downward pressure and affecting demand.”

In Q1 the Nicosia district saw a continuation of its Q4 2022 performance, with both the value (€257.5 million) and volume of transactions (1,597) experiencing slight increases. However, the capital city experienced a decline in the value of property sale transactions compared to Q1 of 2022, when transactions with a total value of €313 million were processed.

In contrast to Nicosia, Limassol presents a different picture, with the value of sales transactions significantly increasing year-on-year, surpassing €908 million in Q1. In the same quarter of 2022 properties worth €587 million were sold in Limassol.

The momentum in Paphos is gaining strength, as both the volume and value of transactions in Q1 exhibited significant yearly and quarterly growth. The value of properties sold in the city and district of Paphos has remained above €250 million for the third consecutive quarter.

The real estate market in Larnaca is also experiencing a surge, with a considerable annual and quarterly increase in the volume and value of transactions: They exceeded €200 million, up from €145 million in the same quarter of 2022 and €160 million in Q4 last year.

Similarly, in the district of Famagusta there was an increase in the value of properties sold in Q1 to €57.3 million from €54 million in the same period last year.