‘Cyprus property market better in 2023 but no meaningful conclusions yet’

The Cyprus Real Estate Agents Registration Council on Wednesday noted that the local property market has performed better during 2023, although it looks forward to drawing more meaningful conclusions after the year has concluded, according to president Marinos Kineyirou.

“It is evident that this year’s data is significantly better compared to the first half of 2022,” Kineyirou said, noting, however, that “we should recall that the first half of 2022 was particularly problematic as pandemic measures were still in effect, and we also faced the outbreak of the war in Ukraine and an increase in economic uncertainty, which restrained the market”.

“I believe more meaningful conclusions will be drawn when we have the data for the second half of 2023,” he added.

Despite the challenges posed by the economic environment, Cyprus’ real estate market demonstrated strength and resilience in the first half of 2023, recording significant growth in both the volume and value of property sales compared to the same period in 2022.

According to the Comparative Sales Analysis conducted by the Department of Land and Surveys, as reported by the Cyprus Real Estate Agents Registration Council, a total of 12,162 property sales transactions were completed in the first half of 2023, with a combined value of €3.2 billion. In contrast, during the corresponding period in 2022, there were 10,700 property sales with a total value of almost €2.5 billion.

This represents a remarkable 28 per cent increase in the sales value and a 13.6 per cent increase in the volume of transactions.

“If we compare, for example, the data from the second half of 2022 with that of the first half of 2023, we observe an increase in sales transactions but a decrease in the overall sales value,” Kineyirou stated.

“We are anticipating how the market will perform during the second half of the year as the increases in lending rates continue, which inevitably affect the demand for housing loans,” the council president added.

While the capital city of Nicosia experienced a slight decline in sales during the first quarter of the current year compared to the same period in 2022, other regions of Cyprus saw positive growth in both volume and sales value.

Particularly noteworthy are the significant increases in the districts of Limassol, Paphos, and Larnaca.

The total value of properties sold in Limassol district saw a notable 38 per cent rise, followed by a remarkable 52 per cent increase in Paphos district and a substantial 26.4 per cent rise in Larnaca district.

The district of Famagusta experienced a more moderate 3.5 per cent increase in sales value. However, the Nicosia district faced a decrease of 4.1 per cent in sales value.

The Cyprus Real Estate Agents Registration Council noted that it remains optimistic about the market’s prospects for the coming months.

They anticipate that the summer months, especially August, will see an increase in sales activity, largely due to the influx of Cypriot tourists during the summer vacation period.

Furthermore, the council expressed confidence that the forthcoming months of September and October will compensate for any market stagnation experienced earlier in the year.

The council attributes the overall market resilience to the efforts of the Cypriot government, which has endeavoured to attract more tourists, particularly from the central European countries that have been historically supportive of Cyprus’ tourism sector.

The council concluded by saying that the government’s various initiatives and measures will help to bolster the real estate market and encourage continued growth in the sector.