Cyprus Real Estate Market Sees Record Growth in 2023

Jun 13, 2024 | Cyprus Economy, Latest News

According to a Deloitte report, the Cyprus real estate market concluded 2023 with 25,400 transactions totaling €5.6 billion, showcasing rapid expansion. The Cyprus Real Estate Review by the “Big Four” audit and consultancy group provides a detailed analysis of the market’s performance amid key economic events.

Key Highlights:

Residential Transactions

  • Main Driver: Residential transactions accounted for 61% of the market value, totaling €3.4 billion from 13,200 transactions.

Vacant Land Transactions

  • Stability: Contributed €1.9 billion from 11,200 deals, ensuring overall sales stability despite a rise in transaction volume.

Commercial Real Estate

  • Higher Values: Though fewer, commercial real estate transactions totaled €121 million, representing 2% of the sector’s value.

Regional Performance

  • Limassol: Top performer with a 41% contribution to overall sales value.
  • Larnaca: Notable for its 28% increase in sales value, driven by higher average transaction values and volumes, marking its third consecutive year of growth.
  • Other Towns: Experienced slightly lower sales compared to the previous year, with the exception of Larnaca.

Market Outlook for 2024

  • Predictions: Specialists predict minor shifts in the real estate market. While luxury flats in high-rise buildings may see a decline, apartments remain the most popular investment.
  • Resilience: Despite economic pressures such as inflation and interest rates, the real estate market has shown resilience.

Future Challenges

George Martides, Financial Advisory and Real Estate Industry Leader at Deloitte Cyprus, emphasized the importance of addressing future challenges through collaboration between the public and private sectors. Key areas of focus include government reforms, reducing bureaucracy, promoting affordable housing, environmental sustainability, and leveraging technological advancements.

The Deloitte report highlights the sustained growth and resilience of the Cyprus real estate market, making it a robust sector despite economic challenges.

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