PwC Cyprus reports that 260 high-end properties inCyprus (in excess of €1.5 million) were sold during 2017, which contributed tothe wider recovery of the real estate industry and the rise in prices for thefirst time in several years.
PwC notes that The Cyprus economy relies heavily onthe real estate sector. From 2014 onwards, there were signs of improvedconfidence in the Cyprus economy and the real estate market, leading toincreased transaction activity in the market. A further significant increasewas recorded in 2016 (Year-on-year increase of 43%) with a subsequent increaseof 24% during 2017. The total number of contracts filed at the Department ofLands & Surveys during 2017 reachedan eight-year high of 8,734 (2016: 7,063). During 2017, the highest volume ofproperties for which sale contracts were filed by foreign buyers, was recordedin Paphos (36%), followed by Limassol (34%) and Larnaca (16%).
The vast majority of sales to foreigners relate toresidential properties. During the past few years, such sales have beenincreasing predominantly as a result of the revisions to the scheme for naturalizationof investors in Cyprus by exception.
Demandfor hi-end residential Cyprus property
PwC reports that during the period 2010-2013, thevolume of sales of high-end residential property (≥ €1.5 million) across Cypruswas stable, averaging around 41 units per annum. From 2014 onwards andfollowing revisions to the scheme for naturalization of investors in Cyprus,demand for this type of properties has been increasing continuously. During2017, the total number of high-end residential transactions reached 260, whichcorresponds to an annual increase of 45% (2016: 179).
Limassol continues to be the preferred location forhigh-end residential properties (approximately 52% of total transactions of2017), followed by Paphos (36%) and Famagusta (9%). Nicosia and Larnacarepresent the least active districts, with total transactions among the twodistricts representing 3% of total (8 transactions).
As per Land Registry data, during 2017, 66% ofhigh-end residential property transactions in Limassol related to apartmentswith the remainder 34% relating to villas. As regards Paphos, almost entirelyhigh-end residential transactions recorded in 2017 related to villas.
The majority of transactions in the high-endresidential segment across Cyprus is within the €1.5 -€2 million price band.
Demand for Cyprus properties in excess of €2 millioncontinued to rise, largely as the result of the launch of new high-endresidential developments in the market increasing the supply of units of thisprice range.