Strong demand for high-end properties, Limassol in the lead

The demand for high-end properties worth over €1.5m remains robust, despite the Cyprus Investment Programme being abolished in November 2020 leading to a decline in activity for the specific sector.

According to PwC’s Cyprus Real Estate Market publication for 2022, the demand for high-end real estate demonstrated strong signs of recovery, recording an annual increase in transactions of 36%, from 162 in 2021 to 220 last year. In terms of value, at €440m, the total value of transactions increased 34% over 2021 and 48% compared with 2020.

Overall, the high-end property sector made up for 11% of total real estate transactions in the Cypriot market in 2022.

Limassol led the way, with 76% of total high-end property transactions, followed by Paphos with 17%. The two coastal cities hold the lion’s share of the specific market (93%), with Nicosia (3%), free Famagusta (3%) and Larnaca (1%) lagging far behind.

Residential units worth €100,000 - €300,000 remain the most resilient sector in real estate, with a 25% share. According to PwC Cyprus, said transactions reached 7,600 in 2022, recording an annual increase of 19% (6,400 in 2021) and a staggering 41% rise compared with 2019, the year before the pandemic hit.

This has been attributed mainly to the demand for primary residences as well as increased investor activity in rentals (particularly apartments), combined with a rise in demand by foreign buyers who have moved to Cyprus.

As for the value of transactions, the specific real estate market sector recorded sales of €1.3b in 2022, which was 18% higher compared with 2021 (€1.1b) and 60% higher than 2020 (€790m).

Nicosia held the lead when it came to residential units of €100,000 - €300,000 with a market share of 30%, followed by Limassol (25%), Larnaca (21%), Paphos (19%) and free Famagusta (5%).