According to real estate data, there were 22,129 property sales in Cyprus during 2022, to the total value of €5.85billion. This is an increase in 35% from the previous year. These positive figures came about despite the problems that the market is currently facing including rising building costs, increased interest rates on loans, and the war in Ukraine. This is extremely positive news, that even with the challenges, the real estate market continued to strengthen and grow during 2022.
In addition, this increase in property sales was experienced throughout the entire island, with all districts reporting an upward trend for the year. The largest number of sales took place in Limassol, closely followed by Nicosia, but the Larnaca, Famagusta, and Paphos districts all also witnessed a desirable number of property sales with an improvement on the previous year.
This increase in property sales appears to have been driven by two main factors, the biggest being foreign demand. In terms of units sold, sales to the foreign market made up a small percentage, but they accounted for over 20% in terms of value. Cyprus has long been a desirable option for foreign real estate investment due to the favourable tax conditions, EU membership, and stable political situation. Furthermore, there has been an increase in interest from foreign businesses looking to relocate to Cyprus, notably from Israel and Lebanon.
It should also be noted that rental prices have increased over the last year, thanks to the influx of foreign workers on the island. Property owners can now expect a much greater return on their investments.
Aside from foreign investment, there were millions of Euros worth of compensation/redundancy payouts made to many local bank employees and other public sector workers, and a large amount of this was put back into the real estate market.
This is all fantastic news for those with a keen interest in Cyprus real estate as well as those looking to invest in 2023, as the market shows no signs of slowing down. Huge amounts of property development can currently be seen across the island, both residential and commercial, which is a direct result of the demand from local, but particularly foreign interest in the island.
With all of the uncertainty of the last few years as a result of the Covid 19 pandemic and the unrest in Ukraine, the property market figures from last year are extremely positive and we would hope to see similar trends continue in 2023.
Source: Cyprus Mail