In 2023, Cyprus Experienced a Record-Breaking Year in its Property Market
In 2023, Cyprus experienced a record-breaking year in its property market, with over 25,400 transactions amounting to a total value of €5.6 billion. This marks a significant milestone for the island’s real estate sector, driven largely by a surge in residential property transactions and the strong performance of key cities, especially Limassol.
Limassol is Top of The List in Preference
Limassol emerged as the dominant force in the market, accounting for 41% of the total sales value, which underscores its leading role in the country’s real estate landscape. While other cities like Nicosia and Paphos also saw substantial activity, Limassol’s contribution was unparalleled, thanks in part to a mix of high-value transactions and a steady influx of foreign investment. Larnaca, on the other hand, recorded a remarkable 28% increase in sales value compared to 2022, demonstrating robust growth
and nearly doubling its transaction value and volume since 2020.
The real estate market in Cyprus in 2023 was characterized by a strong focus on residential properties, which accounted for 61% of the total market value. This equated to €3.4 billion from 13,200 transactions. Vacant land sales were also significant, contributing €1.9 billion from 11,200 transactions, representing 34% of the total sales value. Notably, while commercial real estate transactions were fewer in number, their value remained high, reaching €121 million.
The Growth of the Property Market
The growth of the property market in Cyprus is seen as a reflection of the sector’s resilience amid various economic pressures. Factors such as sustained demand, especially for residential properties, and a favourable investment climate contributed to this success. However, industry experts caution that challenges lie ahead, particularly in areas like sustainable development, technological integration, and affordable housing.
The Market Outlook for 2024 Appears Stable
Looking forward, the market outlook for 2024 appears stable, with apartments expected to continue being the most attractive investment opportunity. However, there is a predicted decline in demand for luxury apartments in high-rise developments, indicating a potential shift in market dynamics.
The real estate sector in Cyprus is also gearing up for a future that emphasizes sustainability and technological advancement. As the market continues to grow, there is a concerted effort to attract new investments while addressing the environmental impact and integrating smart technologies into developments.
Overall, 2023 was a landmark year for property sales in Cyprus, setting a high bar for the years to come as the market continues to evolve and adapt to new challenges and opportunities.
