Property transactions are hitting new highs in Cyprus, where the lifestyle and low taxation are attracting international buyers and businesses. We take a look at the headline stats from the market there.
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Record year!
The tough conditions that plagued global economies in 2023 didn’t hold back Cyprus’s property market. In fact, it was a record year in terms of volume and value. Transaction levels in Cyprus are measured by either sales contracts registered at the Land Registry or title transfers. Either way, the total number of real estate transactions was at least 24,200 (23,600 in 2022) with a value of €5.5billion. Of these, 13,151 were residential sales worth €3.4billion – both record highs. The average transaction value for 2023 was €259,000, up from €257,000 in 2022 but lower compared to the high of €271,000 recorded in 2019.
Prices holding firm
Solid price increases in 2023 have set the Cyprus market up for a buoyant 2024. By the end of the last quarter of 2023, rises in value were recorded by all main property categories both year-on-year and compared to the previous quarter.
Apartments, which in 2023 accounted for 62% of market value and 72% of volume, have been the star performer, with average prices growing 9.53% in Q4 2023 compared to Q4 2022. One exception to the bullish performance was the sub-category high-end apartments (upwards of €1.5million), which have seen falls.
Unsurprisingly, in March, Cyprus was ranked in the top five EMEA countries for average annual price change by Knight Frank.
Non-EU dominates rising foreign interest
Limassol and Paphos are the most popular spots with foreign buyers.
In 2023 the total number of foreign buyers in Cyprus increased by 16% year-on-year, rising to 6,900 properties compared to 5,928 in 2022 (based on sale contracts at the Department of Land and Surveys, or DLS). Non-EU buyers, which includes Britons, accounted for 72% of the foreign market.
Buyers from outside the EU continue to dominate Cyprus’s foreign market in 2024, according to stats from the DLS. In the first three months of the year, 1,033 properties registered sales contracts attributable to non-EU purchasers. This figure was 418 for citizens from within the EU (excluding Cypriots).
Limassol and Paphos attract the largest share of foreign transactions (34% each in 2023), followed by Larnaca (21%), Nicosia (6%) and Famagusta (5%).
Larnaca would appear to be gaining in popularity. All districts except Famagusta recorded rises in the number of foreign purchases in 2023, with Larnaca attracting the most significant increase (25%), followed by Nicosia (21%) and Limassol (16%).
Foreign property-buyers account for approximately 45% of all property purchases in Cyprus, a level maintained since 2018 (excluding pandemic years).
Price variations by district
Average prices for apartments and houses sold across Cyprus in 2023 were €231,000 and €331,000 respectively, according to PWC’s Year in Review report for Cyprus. That said, around 40 per cent of houses sold were still below €250,000.
Looking closer at each district, these figures were: Nicosia – €175,000 for apartments and €242,000 for houses; Limassol – €390,000 for apartments and €423,000 for houses; Larnaca – €156,000 for apartments and €257,000 for houses; Famagusta – €140,000 for apartments and €276,000 for houses; Paphos – €179,000 for apartments and €360,000 for houses.
Popular areas by district
Paralimni, Famagusta sees a lot of a property action.
Wondering where most of the property action takes place in each district? The Nicosia neighbourhood that recorded the highest number of transactions in 2023 was Strovolos, followed by Nicosia Municipality, Lakatamia, Aglantzia and Latsia; Limassol’s top performer was Limassol Municipality, followed by Yermasoyia, Agios Athanasios, Ypsonas and Agios Tychonas. Over in Paphos, it was Paphos Municipality followed by Pegeia, Chlorakas, Geroskipou and Tala. While in Larnaca, it was Larnaca Municipality, followed by Aradippou, Livadia, Voroklini and Pyla. Finally, in Famagusta, it was Paralimni by some margin, followed by Ayia Napa, Derynia, Sotira and Frenaros.
Expectations for 2024
Resale homes, including renovations, are tipped to be especially sought-after this year, according to a survey by Deloitte Cyprus. Plus, 74% of the 100-plus property specialists surveyed anticipate demand to rise for this asset category, with another 24% predicting no change (meaning only 2% thought demand would fall).
Across all categories generally, prices (sales and rentals) aren’t expected to change much from 2023 levels. Exceptions include high-rise luxury developments, where around half of those surveyed are forecasting more falls. And residential apartments get the most votes for offering the best investment opportunities within the next 12 to 18 months, with 40% of respondents predicting prices to rise in 2024.
Currency is an area where you will need to get a grip very quickly. Read the Property Buyer’s Guide to Currency. It is written by our partner Smart Currency Exchange, rated “Excellent” on Trustpilot.
The future is bright
Commitment to investing in infrastructure, strong GDP forecasts (above 2%) and tourism levels pretty much back to the peak year of 2019 are all helping to underpin Cyprus’s bullish property market. Its favourable tax system helps to attract foreign revenue from international businesses and foreigners taking residency there, including HNWIs. Air access is vital to the island’s success, given tourism accounts for around 20% of GDP. Passenger traffic hit record levels at last year, confirmed operator Hermes Airports. More than 11.6 million passengers, with an average of 32,000 passengers per day (41K/summer, 18K/winter) travelled to and from the island in 2023, representing a 3% rise on the previous peak in 2019. Breaking down this, 8.1 million passengers travelled from and to Larnaca Airprot – an increase of 34% compared to 2022, while at Paphos Airport this was 3.6 million – a year-on-year rise of 12%. Overall, 52 airlines operated from the two airports, flying to 39 countries and 159 routes. Seat availability over the 2023-2024 winter period increased by 30% compared to 2019.
Sources: Knight Frank, DLS, Deloitte Cyprus, Hermes Airports
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