The real estate sector in Paphos experienced a double-digit increase in sales during 2022, with the volume of transactions rising by 31 per cent year-on-year, according to PwC Cyprus’ latest edition of the real estate market publication, which provides insights on the property sector’s performance.
Paphos was one of three districts with an annual increase in property sales in the double digits, with the other two being Limassol, which saw an increase of 18 per cent year-on-year, and Larnaca, whose property sales rose by 31 per cent on annual basis.
Conversely, Nicosia saw a decline in sales to the tune of 6 per cent, while Famagusta experienced a drop of 1 per cent year-on-year.
According to PwC’s in-depth analysis, the total value of real estate transactions reached a record-high of €5.2 billion in 2022, recording an annual increase of 27 per cent.
In terms of sales volume, there were 22,500 transactions during 2022, a rise of 12 per cent from the previous year, while also surpassing the pre-pandemic levels, exceeding the figures of 2019 by 31 per cent.
“Undoubtedly, the driving force of the market relates to apartments, with the value of transactions reaching €2.1 billion during 2022, a 42 per cent increase compared to 2021,” PwC Cyprus said in its report.
“Demand appears to have been fuelled by a growing appetite from companies of foreign interests to relocate their operations and staff on the island, mainly in the coastal areas, and was further supported by a resilient domestic segment,” the company added.
According to the report, a total of 9,000 apartments were sold in 2022, representing a 29 per cent year-on-year increase.
What is more, the report noted that the high-end residential property segment, in reference to properties whose value exceeds €1.5 million, remained active, despite having to suffer some adverse effects.
“The termination of the Cyprus Investment Programme (CIP), effective from November 1 2020, led to an observed shrinkage of activity levels in the high-end residential property segment,” the report explained.
The report went on to say that this particular segment enjoyed a partial recovery throughout 2022, with a total of 220 sales of high-end residential properties being recorded.
This figure represents a 36 per cent year-on-year increase, with the report noting that this points to the fact that “this segment remains active”.
Elsewhere, the report stated that perhaps the most resilient part of the market relates to the residential property segment in the range between €100,000 and €300,000.
There were 7,600 sales of residential properties which were valued between €100,000 and €300,000 during 2022, representing a 19 per cent year-on-year increase, as well as a 41 per cent increase compared to 2019.
“This is mainly a result of strong demand for primary residences and increasing investment activity in private-rented housing, particularly apartments, combined with the growing levels of foreign demand in the context of relocations to Cyprus,” the report said.
What is more, the report noted that despite the growing levels of demand for real estate, as evidenced by the aforementioned sales data presented, building permits decelerated during the first ten months of 2022, recording a 5 per cent year-on-year decline.
Moreover, the company explained that this may be largely attributed to the continuous hike in the cost of material prices, which was sustained throughout 2021 and 2022, with prices rising by as much as 30 per cent in a two-month period.
“In an environment which at the wider geopolitical level is dealing with several challenges and crises, the Cyprus real estate sector proved to be particularly resilient, exceeding expectations in transaction activity levels observed during the year, fuelled by the ongoing demographic shifts observed on the island,” PwC Cyprus partner Constantinos Constantinou commented.