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Property Development in Cyprus: Trends and Statistics for 2023

cyprus property development statistics 2023

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Introduction

As we end 2023, the property development landscape in Cyprus continues to evolve, shaped by a range of economic and market forces. This article provides an insightful glance at the current state of property development in Cyprus, underpinned by the latest statistics and trends.

Economic Overview

Cyprus’s economy has shown resilience and a gradual recovery from the global challenges of the past few years. The GDP growth rate and investment influx, particularly in the real estate sector, have been significant. This economic stability has created a conducive environment for property development.

Property Development Trends

Residential Sector

  • Growth in Demand: The demand for residential properties, especially in urban areas, has seen an uptick. This is attributed to factors such as increased foreign investment and a rise in local purchasing power.
  • Popular Locations: Cities like Nicosia, Limassol, and Paphos remain hotspots for development. Coastal areas are particularly sought after for luxury properties.

Commercial Sector

  • Office Space Expansion: There’s a growing trend in the development of modern office spaces, driven by the expanding service sector and foreign companies setting up in Cyprus.
  • Retail Developments: Retail space is evolving, with a mix of traditional shopping centers and innovative commercial hubs.

Sustainable Development

  • Green Building Practices: Developers are increasingly adopting sustainable building practices, focusing on energy efficiency and eco-friendly materials.

Cyprus Property Statistics for 2023

In 2023, the property market in Cyprus demonstrated significant trends and variations across different cities and sectors.

Limassol

  • Market Focus: Predominantly on premium properties, such as luxury apartments and villas. Over half of the transactions in Q2 2023 were in the premium segment.
  • Price Trends: The median price for elite apartments dropped by up to 20%, settling at around €325,000. Houses saw a decrease of 12%, with a median price of €700,000.

Paphos

  • Market Characteristics: Known for historical attractions and beaches, Paphos saw over 20% of transactions in premium real estate in Q2 2023, with a preference for houses over apartments.
  • Price Movements: The median price for premium homes in Paphos decreased by 8% year-on-year to €750,000, whereas apartments experienced a slight increase of 1% to €303,000.

Nicosia

  • Capital’s Market: Around 19% of Q2 2023 transactions were in the premium sector. Both houses and premium apartments showed positive price trends.
  • Price Changes: The median price for premium houses increased by 26% to €810,000, and apartments rose by 4% to €260,000.

Larnaca and Famagusta

  • Larnaca: A notable tourist and business center, saw a 12% transaction rate in elite real estate. Median prices for houses and apartments decreased by 4% and 15% respectively.
  • Famagusta: A tourist town with fewer transactions in expensive real estate.

General Market Trends

  • The Residential Property Price Index (RPPI) showed a quarterly rise of 2.1% in Q1 2023, driven by a 2.3% increase in apartment prices and a 1.7% increase in house prices.
  • On an annual basis, there was a robust surge in residential property prices, registering a 7.7% increase in Q1 2023.
  • In Q3 2023, the RPPI recorded a 2.2% increase, attributed to a 1.4% rise in house prices and a 3.6% increase in apartment prices.
  • Annual property price growth was observed across all districts, with Nicosia, Limassol, Larnaca, Paphos, and Famagusta all showing increases.

Foreign Investment

  • Foreign buyers, especially from non-EU countries, played a significant role in the market, accounting for about half of all buyers in 2022 and Q1 2023.
  • In Q3 2023, there was a 13.7% annual increase in the number of properties sold to foreign buyers.

Construction and Sales

  • There was a decrease in the number of residential buildings for which building permits were issued from January to August 2023 compared to the same period in 2022.
  • Sales documents recorded a 14.4% annual increase in Q3 2023, reflecting heightened demand for properties.

These trends indicate a dynamic property market in Cyprus for 2023, with significant interest in premium properties, especially in cities like Limassol and Paphos, and a notable influence from foreign investment​​​​​​.

Government Policies and Incentives

The Cyprus government has introduced several initiatives to boost property development. These measures aim to attract more investors and facilitate ease of doing business in the real estate sector.

Challenges and Opportunities

While the market is thriving, challenges such as regulatory hurdles or market saturation persist. However, opportunities such as emerging markets or technological advancements in construction are shaping the future of property development in Cyprus.

Conclusion

The property development scene in Cyprus in 2023 is dynamic, marked by growth and new opportunities. With a stable economy and favorable government policies, the sector is poised for continued expansion, offering promising prospects for investors and developers alike [].

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