INSIGHTS Q3 2023

Cyprus, November 2, 2023 – Cyprus Sotheby’s International Realty publishes a quarterly report “INSIGHTS” detailing the volume and value on Cyprus high-end residential real estate market in Q3 2023. This report also provides insights into the real estate market in each district of the country. 

Anastasia Yianni, CEO of Cyprus Sotheby’s International Realty, commented on the report:
“Since the beginning of the year, Cyprus high-end residential property market showed a slight decrease both in terms of volume and value compared with the same period of the last year. The market is stabilizing on the back of extremely strong performance in 2022 and first half of 2023. To a certain degree, this is influenced by the latest legislative initiatives: the adjusted regulations for permanent residency by investment in Cyprus and a new law on reduced VAT for first homes. However, we expect the demand to remain quite strong. Despite occasional fluctuations, the real estate sector, especially its premium end, over the decades has proved to be particularly resilient and a good investment field in our challenging times. 

It is also noteworthy that foreign interest remains on the rise. Buyers from abroad actively buy property in Cyprus confirming the appeal of the island and its prospects as an international business center, fast-growing investment destination in Europe, and safe place for life. After all, existing investors are the best ambassadors of Cyprus that help building its positive image”. 

THE KEY HIGHLIGHTS OF THE REPORT: 

• According to the Cyprus Land Registry, as of the end of September 2023, the total number of registered contracts of sales since the beginning of the year reached 11,519, showing a 20% increase year-on-year. In Q3 2023, the number of registered contracts of sales reached a total of 3,830, up 14,4% year-on-year.   

• The attractiveness of Cyprus among foreign buyers continues to grow. The share of overseas sales composed 45,9% of total property sales contracts for the last nine months. Since the beginning of the year foreign property sales totaled 5,289, demonstrating an increase by 27,9% year-on-year driven by demand from non-EU citizens. In Q3 2023, the overseas sales increased by 13,7% to 1,712 comparing with Q3 2022. 

• Despite the growing number of registered contracts of sales, as evident by the transaction data presented, Cyprus residential real estate market decreased to EUR 2.7bn during nine months of 2023, recording a 5.2% annual drop. The residential market actively grew throughout 2022 and first-half 2023, so the current correction was expected.  

• During nine months 2023, the number of transactions on Cyprus high-end residential property market totaled 2,820 representing an increase 10.6% year-on-year. By value, the high-end residential property market declined slightly by 3,1% year-on-year to EUR 1.5bn. The high-end properties account for a half of the residential market (53%) with EUR 1.5bn in terms of transaction value. The decline was attributed to the results of the previous quarter. 

• The high-end residential property market was not very active in the last three months. The number of transactions totaled 616 with only 97 transactions with high-end houses. By value, in the last quarter, the high-end residential property market dropped by 44,6% year-on-year and fell slightly below EUR 300mn mark.  

• Both segments – houses and apartments - showed a decrease year-on-year (41.2% and 46.1% respectively). In Q3 2023, the high-end apartment segment declined by volume by 32.9% year-on-year to 519 transactions and by value by 46.1% year-on-year to EUR 197.7mn.   

• In Limassol, since the beginning of the year the number or registered transactions with high-end property reached 1,510, representing a marginal decrease of 1.5% year-on-year. By value it declined by 11.8% year-on-year.  In Q3 2023, the local high-end market decreased by 41.3% year-on-year in terms of volume to 311 transactions and almost by half year-on-year in terms of value to EUR 159.2mn.  

• In Paphos, during nine months of 2023, the number of transactions reached 497, up 35.1% year-on-year while the value of the market grew by 14.8% year-on-year to EUR 286.9 mn. In Q3 2023, the local high-end market decreased by 31.2% year-on-year by volume to 95 transactions and by 40.5% year-on-year by value to EUR 54.4mn.  

• In Nicosia, during nine months of 2023 the high-end local market was basically stable comparing with the same period of the last year, though in Q3 2023, it experienced a decline both by volume and value.  

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The high-end property market in the report means houses over EUR 500k and apartments over EUR 200k.