Cyprus Property 2019 Sales review & what to expect in 2020
Cyprus continues to show positive signs of growth following the financial crisis that hit the island in 2012/2013 with another year of increased sales recorded countrywide.
The total number of property sales during 2019 (10,336 properties sold) was the highest on record since 2008 (when 14,667 properties were sold) with sales rising in all districts. This was also a 12% year-on-year increase in the number of property sales during 2019 compared to 2018 figures.
(Find image source below)
The domestic sales took the lion share of the market, accounting for 57% of all sales, a rise of 21% on an annual basis, with increased numbers recorded in all districts.
Paphos led the way with sales up 55% on an annual basis, followed by Larnaca, where sales increased by 26%. Meanwhile, sales in Nicosia rose by 23% and sales in Famagusta and Limassol rose by 18% and 10% respectively.
However, when looking at the highest number of sales, Limassol recorded the highest amount (2,321) followed by Nicosia (1,693), Larnaca (829), Paphos (743) and finally Famagusta (298).
Property sales to the EU market, which accounted for 15% of all sales, rose 7% on an annual basis. Increased numbers were recorded in all districts with the exception of Famagusta, where sales fell 6%.
Property sales to the non-EU citizens, which accounted for 28% of all sales during 2019, rose by just 0.48% on an annual basis. Although sales in Limassol and Paphos, recorded falls of 12% and 9% respectively, sales rose in the remaining 3 districts.
What to look out for in 2020
2019 showed that Cyprus real estate market is changing faster than ever and the only way to remain attractive is to constantly innovate and offer new solutions to both Local and International Clientele.
Large scale investments continue to increase across the island with a number of projects starting to come to life in the coming months.
New retail shopping destinations such as the Neo Plaza in Nicosia and the Metropolis Centre in Larnaca are due to complete during 2020. Following the construction of these facilities, Cyprus will have 450,000 square meters of modern retail space, which will facilitate the entry of many new brands to the market.
The residential market remains buoyant with the completion of many of the high-rise developments expected across the island. Limassol’s seafront welcomes the completion of Landmark projects such as One & Del Mar whilst a host of others continue to appear across the coastline forever changing Limassol’s skyline.
In the office space segment, an important change happened, as many companies are increasingly interested in downtown locations for business. By the end of 2020, Cyprus will, with the finalisation of the office development schemes currently under construction, reach 260,000 square meters of office space in its market.
Among the major office projects that are planned to be delivered on the market this year include the Capital Gate and the Asteroid Tower, as well as upcoming projects such as the Cymiva Office Tower in the Nicosia district.
Hotels and Tourism are sustainable and a very promising market as well, with additions such as a new Radisson and a Sofitel in Larnaca, plus Ayia Napa Marina to join the market, soon.
With the recently completed new terminal works at the Limassol Port & targeted marketing campaigns and collaboration with relevant cruise stakeholders it is expected that cruise lines for 2020 onwards will increase by over 40% compared to previous years’ cruise bookings.
This increase in activity around the Port will be good news for the area around it, especially the Casino resort where construction is moving along at a pace with an estimated completion during 2021 which will make it the largest Casino Resort in Europe when finished.
The focus is also on the industrial and land sector, which will experience expansion in the future. This year more than 10,000 square meters of modern industrial and logistics facilities have been completed, with the current total supply in Cyprus of over 340,000 square meters. More such facilities are to be constructed in 2020, from companies such as Lamar.
It is important to note that the availability of financing is a major component in the growth of the investment market in Cyprus.
The banks are generally willing to finance yielding assets with sustainable income at attractive rates, allowing for attractive gaps to investors looking for leverage.
Nicosia, Limassol, Paphos and Larnaca are finally becoming important locations on the world investment map and we're looking forward to see what's next!