Cyprus First Half Year Real Estate Review

According to the PwC Cyprus Real Estate Market review for the first half of 2019, A quarter of the total value of real estate transactions in Cyprus took place in April.

Out of a total of €2.5 billion of transactions during the first half of 2019, €600 millions’ worth was recorded in April.

Part of the reason is believed to be that overseas property investors rushed to take advantage of the less stringent criteria of the island’s citizenship by investment scheme. As of May 15, 2019, the popular scheme’s due diligence checks became stricter.

A total of 225 high-end residential properties were acquired during the first six months of 2019, recording a 68 per cent growth compared to the same period in 2018.

The transaction value in the high-end segment, it stood at €520 million representing a 46 per cent increase compared to the first six months in 2018.

All in all, the high-end residential property segment represented 20 per cent of total transaction value during the first half of 2019.

Non-EU buyers represented 45 per cent of the total real estate transaction value during the first half of the year. In fact, a total of 2.482 properties in terms of number of contracts were acquired by foreigners, compared to 2.187 during the first half of 2018. This represents a 13 per cent year-on-year increase.

Approximately 70 per cent of properties acquired by foreigners relate to non-EU buyers. This compared to 67 per cent in the first half of 2018. In Limassol, 81% of foreign transactions relate to non-EU buyers.

The respective share of non-EU resident acquisitions in Limassol was 81 per cent, while Paphos and Larnaca stood at 64 per cent and 76 per cent respectively.

Overall, there was a 24 per cent increase in sale contracts across Cyprus during the first half of 2019, with Limassol responsible for more than a third at 36 per cent.

However, Paphos and Nicosia showed the highest growth in sale contracts filed at the Department of Land Survey during the first half of 2019. They recorded growth of 37 per cent and 29 per cent respectively.