Compare Listings

Cyprus Real Estate Market – Primed to Take Off

Cyprus Real Estate Market – Primed to Take Off

2017 Key Market Highlights

The real estate market, and in particular the residential property sector, is directly affected by the overall economic performance of the country. The positive developments in the economy as indicated through the improvement of economic performance indicators, such as the growth in real GDP of 3.4% in 2017, various upgrades of Cyprus’ credit ratings as well as increase in tourist arrivals 16.6% growth in 2017 Vs 2016 positively affected the Real Estate market.

On the back of a strong market performance in 2016, 2017 continued to show improved confidence in the property sector as is evident by the increased activity levels, both in terms of transactions as well as issued building permits.

Government schemes encouraging foreign direct investments, have stipulated interest from foreign buyers, which has been a driving force for the market.

Transaction Volume: Sale contracts

The number of sale contracts filed at the DLS across Cyprus exhibited a 20% increase compared to 2016

The increase in real estate property transactions observed in H1 2017 was largely driven by:

  • The continuation of property tax incentives and the government’s schemes encouraging direct investments in Cyprus, which have attracted mainly non-EU buyers (Chinese, Russian, Indian and UAE);
  • Increase in the demand from the domestic market in the residential property sector.

Real Estate Price Evolution

Following a negative trajectory in the RICS Residential Index during the years 2010-2015 which turned positive in 2016, there was a further 4% increase as per the RICS Index during 2017

Foreign transaction activity

Further increase in demand from foreign buyers was recorded during H1 2017, with sale contracts filed by foreigners recording a 106% increase compared to H1 2016. Paphos and Limassol appear to be the preferred cities by foreigners during this period.

The highest number of sale contracts filed by foreign buyers, was recorded in Paphos (37%), followed by Limassol (33%) and Larnaca (16%).

The large majority of sales to foreigners relate to residential properties.

High-end Residential Property Segment (≥€1,5mln)

59% increase in sale contracts for high-end residential properties compared to 2016

Construction Activity

In terms of value, a 34% increase was recorded in building permits issued across Cyprus

 

Author – Derek Watkins https://www.linkedin.com/in/derekwatkins/

Originally Published on February 7, 2018

img

Worldwide Property Sales

Worldwide Property Sales benefit from over 30 years experience in the property industry. As specialists in International property marketing, promotion and sales we have gained our expertise through many years experience in residential and commercial property sales and lettings.

Related posts

Greek Golden Visa Scheme to Offer New Investment Options

  Taking into consideration the needs of the recovering Greek economy and aiming to bring...

Continue reading
Worldwide Property Sales
by Worldwide Property Sales

Success All-Round for Thriving Osaka Real Estate

Osaka is fast emerging as an attractive real estate investment destination, supported by spillover...

Continue reading
Worldwide Property Sales
by Worldwide Property Sales

International Property Investing – Part One

Choosing Your Target Market “…How does one capitalize on global profitability trends, the ups...

Continue reading
Worldwide Property Sales
by Worldwide Property Sales

Join The Discussion