March was reported to hold the second highest number of property sales in the month since records began in 2000. But these figures face conflicting market forces.
On the one hand Cyprus, which has always ‘benefitted’ from trouble in the region, has strong interest from abroad due to Vladimir Putin’s war in Ukraine and also government incentives to attract foreign companies set up their corporate base in Cyprus (Headquartering).
On the other hand, increased interest rates and higher construction costs deter Cypriots from buying property, but some are looking to buy before changes to the reduced VAT on homes are agreed and implemented.
According to official statistics published by the Department of Lands & Surveys, sales to Cypriots in the first quarter this year rose 12% to reach 1,868, up from 1,732 in 2022 and 1,255 in 2019.
Sales to foreigners rose by 34% in the first quarter to reach 1,706, up from 1,277 in 2022 and 1,111 in 2019.
Real estate market segment analysis
Property sales to the domestic market
Sales to the domestic market in March rose 12% compared to March 2022 but with Nicosia recording a fall of 18%.
Limassol reported the greatest number of sales followed by Nicosia, Larnaca, Paphos and Famagusta.
Sales to the domestic market during the first quarter of 2023 stood at 1,868; a rise of 12% on the 1,732 achieved during the same period last year.
Property sales to overseas citizens
Sales to foreigners (non-Cypriots) rose 37% compared to March 2022 with sales rising in all districts with the exception of Famagusta and Nicosia, where they fell by 40% and 8% respectively.
Paphos achieved the greatest number of sales, followed by Limassol, Larnaca, Nicosia and Famagusta.
Foreign sales during the first quarter of 2023 reached 1,706; a 34% increase on the 1,277 achieved in the same period last year.
Property sales to EU citizens
Sales to EU nationals fell for the fourth consecutive month in March and fell 17% compared to March 2022, with sales falling in all districts with the exception of Larnaca and Limassol.
Paphos achieved the greatest number of sales, followed by Limassol, Larnaca, Nicosia and Famagusta.
Sales to EU nationals during the first quarter of 2023 reached 446; a fall of 29% compared to the 628 achieved in the first quarter of last year.
Property sales to non-EU citizens
Sales to non-EU Nationals rose by 78% compared to March 2022, with sales rising in all districts.
Limassol and Paphos recorded the highest number of sales, followed by Larnaca, Famagusta and Nicosia.
Sales to non-EU nationals during the first quarter of 2023 reached 1,260; an increase of 94% compared to the 649 achieved in the first three months of last year.
Courtesy: Nigel Howarth – Cyprus Property News
