Recent property sales data in Cyprus have unveiled intriguing trends that set the country’s provinces apart. Notably, Nicosia, the capital, stands in stark contrast to its coastal counterparts in terms of real estate dynamics.
Nicosia’s Domestic Focus
In Nicosia, the property market is predominantly shaped by local buyers. However, when we shift our gaze to coastal regions, particularly the bustling areas witnessing a surge in real estate transactions, a different narrative unfolds. Here, the growth is largely attributed to foreign investors, especially those from non-European Union (EU) countries. There are several key factors at play.
Cyprus: A New Haven for Investors
Recent geopolitical events have played a pivotal role in shaping Cyprus as an attractive destination for international investors. Events like the Russian invasion of Ukraine and the tragic explosion in the Lebanese port have prompted many foreign investors to seek refuge in Cyprus. They view the island nation as a secure and stable location to establish both their businesses and homes.
Foreign Investment in Cyprus
Taking a broader look at the property landscape across Cyprus, we see that out of the 22,500 real estate sales and transfers, a significant portion – 7,408 transactions, to be precise – involved foreign buyers. This translates to roughly 33% of the total property transactions in Cyprus.
However, it’s important to note that this percentage varies significantly by province. Let’s delve into some key figures:
Limassol: This coastal city, known for its vibrant atmosphere and stunning beaches, recorded 7,262 property transactions. Here, approximately 31% of these transactions involved foreign buyers.
Larnaca: In this province, foreign buyers accounted for 34% of the 4,661 property transactions.
Famagusta: An interesting outlier, Famagusta province saw foreign buyers outnumbering Cypriot buyers at a staggering 56%. However, it’s important to note that the total number of properties sold here remains relatively low at 617.
Paphos Takes the Lead
Now, let’s focus on Paphos. This coastal province emerges as the top choice for foreign investors, with an impressive 57% of the 4,573 transactions involving non-Cypriot buyers. Within this province, we also observe a noteworthy split: 19% of buyers hail from Europe, while 38% come from non-European countries.
This stark contrast highlights Paphos as the preferred destination for foreign investors, while Nicosia’s property market remains closely aligned with the domestic sector, with only 11% of buyers originating from within the EU or beyond. By August of this year, Nicosia recorded 5,447 property sales and transfers.
A Divided Market
Coastal regions heavily rely on foreign buyers, driven by international events and the allure of Mediterranean living. Conversely, Nicosia primarily caters to local residents, highlighting the differing dynamics shaping Cyprus’ real estate landscape. As the global stage continues to evolve, Cyprus is likely to remain a focal point for both domestic and international investors seeking unique opportunities in the property market.
Source: Kathimerini Cyprus