Cyprus Real Estate Market - 2017 in review
The real estate market, and in particular the residential property sector, is directly affected by the overall economic performance of the country.
The confidence level that is currently exhibited across the Cyprus real estate market largely reflects the positive developments in the economy of the country as well as the improvement of economic performance indicators.
Increased activity levels, both in terms of transactions as well as new permits for development, demonstrating the improved confidence in the property sector.
Interest from foreign buyers, which has been a driving force for the market, has increased significantly during the year with transactions relating to the high-end residential property segment (≥ €1,5mln), increasing by 45% in 2017 on an annual basis.
Growth in all property price indices was recorded during 2017 and the beginning of 2018, reflecting the increased demand and activity levels in the real estate sector.
Key market highlights - 2017 year end
- 24% increase in sale contracts across Cyprus
- Majority of transactions were recorded in Limassol (36% of total)
- Famagusta recorded the highest annual growth in the number of sale contracts during 2017 (44%), followed by Nicosia (42%)
Foreign Transaction Activity
- 33% increase in sale contracts filed by foreign buyers
- Paphos and Limassol appear to be the preferred districts for foreign buyers (together the two districts comprise 70% of foreign transactions)
High-end Residential Property Segment (≥€1,5mln)
- 45% increase in sale contracts for high-end residential properties
- Limassol attracts c.52% of transactions in the high-end residential property segment
Real estate price evolution
- The RICS and CBC residential property price indices indicate a 4% and 1% growth respectively up to Q3 2017 compared to Q4 2016
- Commercial property prices as per the RICS index recorded a growth of 3% for retail properties and 7% for offices during the same period
- Rental prices have shown a consecutive growth during the Q1 2018. On an annual basis, rents increased within a range of 2,2% on warehouses to 18,1% for offices and apartments.
- The value of new building permits issued in 2017 increased by 49% on an annual basis across Cyprus
- Nicosia is the district with the highest concentration of new development licensed area (35% of total)
Sources: PwC Cyprus [Year in Review | 2017], RICS [Cyprus Property Price Index Q1 2018]