Residential real estate market going strong in Cyprus

Real estate transactions hit an all-time high in Cyprus last year, Deloitte has said in a report, noting that interest was focused on the residential market and on the seaside city of Limassol. It also said that it expects interest to remain strong this year, though luxury condos in high-rise developments may see a decline.

In its annual Real Estate Review, Deloitte recorded a total of 13,200 transactions in Cyprus’ residential real estate market in 2023, which came to 3.4 billion euros in sales and accounted for 61% of total sales value. The average transaction value was €259,000, versus €257,000 in 2022, it said, adding that the increase was largely driven by new build properties, which accounted for 69% of total residential sales.

In total, the market closed with 25,400 transactions worth €5.6 billion. 

Vacant land transactions (plots and fields) made up the second most popular category, with sales of €1.9 billion across 11,200 transactions, accounting for 34% of the total value. Despite a higher number of transactions, this category’s performance in terms of value remained stable compared to 2022. 

Finally, real estate transactions concerning commercial spaces, although also fewer compared to 2022, were higher in value, reaching €121 million, which represents 2% of the total value of the sector.

In terms of geography, Limassol continued to dominate the market, accounting for 41% of total sales value. 

With the exception of Larnaca, all other cities recorded marginally lower sales values compared to 2022. Larnaca showed a remarkable increase in sales value, surpassing 2022 by 28%. This was due to both an increased number of transactions and a higher average transaction value. This is the third consecutive year that Larnaca has shown growth, almost doubling both in value and volume of transactions since 2020.

The report also presents the results of Deloitte Cyprus’ survey of local industry professionals, which found that respondents do not expect any substantial changes in the real estate landscape this year. 

They noted that they expect apartments to remain the most attractive investment opportunity over the next 12 to 18 months, though the market for luxury apartments in high-rise developments will most likely decline.

“The steady and continuous growth of the real estate market as shown from our analysis, both in terms of transaction value and volume, showcases the resilience of the sector despite the various economic pressures, such as inflation, interest rates, and other external factors,” said George Martides, real estate industry leader at Deloitte Cyprus.

“These results instill optimism, but also a sense of responsibility to effectively address any future challenges – such as sustainable and green developments, the rapid growth of technology and Artificial Intelligence, government reforms, bureaucracy, affordable housing – and to intensify our efforts in attracting new types of investment from both foreign and local investors,” he added. [Kathimerini English Edition Cyprus]