Sales Starting to Drop In Cyprus Real Estate Market
Sales Starting to Drop In Cyprus
In August of this year, the real estate market experienced a notable uptick in property sales compared to the same period in 2022. However, it’s essential to note that the year-to-date sales growth, which stood at an impressive 28% at the end of June, had moderated to 20% by the close of August. This subtle shift in numbers suggests a potential deceleration in the market’s pace. Several factors likely contribute to this gradual slowdown, including the rise in interest rates and escalating construction costs.
Nevertheless, it’s worth highlighting that despite the apparent easing of sales momentum, Cyprus is on track to achieve its second-highest annual property sales figure on record by the end of this year. Recent official statistics released by the Department of Lands and Surveys indicate that property sales in August, measured by the number of contracts filed at Land Registry offices, increased by a commendable 16% compared to August 2022. It’s essential to clarify that property sales encompass a range of real estate categories, including residential dwellings, retail spaces, offices, warehouses, and land parcels, including fields and plots.
In terms of specific figures, the total number of property sales in August 2023 reached 1,132, surpassing the 972 recorded in August 2022. Remarkably, sales experienced growth across all regions except for Limassol, where there was a slight 6% dip. Notwithstanding this decline, Limassol maintained its lead in terms of the highest number of sales, with 327 transactions, followed by Larnaca (273), Paphos (252), Nicosia (208), and Famagusta (72). Looking at the broader picture, property sales for the first eight months of 2023 amounted to a total of 10,183, signifying a 20% increase when compared to the 8,453 transactions recorded during the same period last year.
This figure also represents the highest number of contracts deposited since 2008, when the tally reached 11,088. One contributing factor to this ongoing real estate activity is the government’s international headquartering initiative, which has generated increased demand for properties among foreign businesses and investors from countries such as Russia, Israel, Ukraine, the United Kingdom, Lebanon, and Belarus.
In conclusion, while there are signs of a gradual slowdown in the Cyprus property market, the overall outlook remains positive, driven by various factors, including international interest and strong year-to-date performance. This resilience positions Cyprus favorably within the global real estate landscape.
Inspired from CyprusPropertyNews.