How the Cyprus Property Market is Currently Performing

By HopwoodHouse, 29 January, 2018

The Cyprus property market experienced a strong year in 2017, in more ways than one, making it an even more attractive market to invest in for both domestic and international investors. For investors considering Cyprus as a potential destination for their next investment, it is important that they are aware of all aspects of the investment, and that includes how the market is currently performing. With that in mind, we discuss the current performance of the Cyprus market to ensure that investors have all of the information that they need, prior to making their investment.

An Increase to Cyprus Property Sales in 2017

The Cyprus property market has continued its recovery once again in 2017, much in the same way as previous years have displayed. For the fourth consecutive year, property sales in Cyprus increased, with an increase of 24% in 2017, following increases of 43% in 2016, 9% in 2015 and 20% in 2014. Despite ongoing issues with property title deeds, of which the Government is trying to find a solution for, the country has seen an increase to property sales, yet once a solution is put into place, there may well be further increases.

In December of 2017, there were a total of 1,537 agreed contracts for residential and commercial property and land sales, which is a 36% increase when compared to December 2016, cementing the idea that 2017 has been a strong year for the market. Most districts across the country saw an increase to sales, with Nicosia seeing a 113% increase year on year, Famagusta a 94% increase, an 18% increase in Larnaca, 23% in Limassol and Paphos saw a 10% increase. Although some areas of the country saw much bigger increases, it is positive to see increases across the country.

As a total from the whole year of 2017, there were 8,734 sale contracts placed, of which was the highest figure since the global financial crisis that occurred in 2008 and a 24% increase when compared to the previous year.

Residential Property Sales to Increase in 2018

The residential property for sale in Cyprus performed at a fantastic rate in 2017, yet that position is only expected to increase and perform even better throughout 2018. With property price increases and the number of sales increasing, 2018 is set to be an extremely positive year for the residential market in Cyprus.

In recent figures released by the Department of Lands and Surveys, it can be seen that the residential property market performed very strongly in 2017, specifically with a 39% increase to the number of sales recorded in November, when compared to the same period the year before. As well as this, August, September and October also experienced residential sales increases of 27%, 8% and 18% respectively.

 

Looking further into the statistics, it can be seen that many areas of the country saw increases to overseas property investment, with the figures showing that October 2017 saw overseas buyers purchase 65% more properties when compared to the same period in 2016. It is widely thought that this is with special thanks to the different incentives available to buyers, including the different visa schemes that non-European Union foreign investors can benefit from.