Cyprus’ real estate sector goes from strength to strength
Cyprus’ real estate sector is continuing to thrive with current trends showing that Cyprus is on track to achieve an eight-year high in 2018.
According to the PwC report “First Half in Review H1 2018’’ the number of sales transactions with the Land registry reached a total of 4,470. If this number is matched in the second half of this year it will beat the previous eight-year high of 8,734.
The number of sales in the first six months of 2018 represents an uplift of 24%, compared to the 3,610 sale contracts filed at the land registry during the same period in 2017.
According to PwC, the messages in the report are clearly positive despite the market still being heavily dependent on foreign buyers and the investment for citizenship scheme.
Based on the report, a total of 2,187 out of 4,470 properties sold in Cyprus between January-June were acquired by foreign buyers, with the majority of transactions (37%) in Limassol, followed by Paphos (23%).
Indeed, the investment for citizenship scheme is still playing an active role in market growth.
Transactions involving foreign investors have more than doubled, with Limassol and Paphos sharing 70% of the market.
Paphos has had the highest share of sales contracts filed by international buyers (39%), closely followed by Limassol (31%).
Demand for high- end residential properties
Following the revisions made in 2014, Cyprus naturalization scheme has seen a continuous increase in demand for high-end properties.
During the first half of 2018, the total number of high-end residential transactions was estimated at 131, representing an 8% increase compared to the same period of 2017.
Limassol continues to be the district with the biggest share of high-end residential property transactions (63% of total transactions in H1 2018), followed by Paphos (29%).
The two districts combined make up the vast majority of the market representing 92% of this segment.
Interestingly in Limassol as much as 80% of the high-end residential property transactions related to apartments, with the remainder 20% relating to villas.
In Paphos however, all of the high-end residential transactions recorded in H1 2018 were relating to villas.
For more information about investing in Cyprus contact the team on +357 25 31 31 81 or visit www.ipncyprus.com