A Place in the Sun – Real Estate in Cyprus is Booming

July 4, 2024 9:55 am

Cyprus is
experiencing a significant real estate boom, attracting both domestic and
international investors. With its favorable tax policies, strategic location,
and growing economy, Cyprus has become a prime destination for real estate
investments.

Despite global
economic uncertainties, Cyprus’s real estate sector demonstrated remarkable
resilience in 2023. According to a report
by PwC Cyprus
, the market remained robust despite global turmoil, with
steady property transactions and sustained investor interest. This resilience
set a positive tone for 2024, with expectations of continued growth and
stability in the sector. According to PwC, last year the total value of transactions reached €5.5
billion, which would sit at approximately the same value as 2022.

According to Deloitte’s
annual
Real Estate Review
, transactions actually grew in 2023. The company
reported a total of 13,200 transactions in the residential sector, amounting to
€3.4 billion in sales, which accounted for 61% of the total sales value. The
average transaction value increased slightly to €259,000 from €257,000 in 2022,
driven primarily by new build properties, which comprised 69% of residential
sales.

The REALTYon Expo is running in Limassol.

The total real
estate market in Cyprus saw 25,400 transactions worth €5.6 billion, the report
stated. Transactions involving vacant land (plots and fields) were the second
most popular, with €1.9 billion across 11,200 transactions, making up 34% of
the total value. Although the number of land transactions increased, their
value remained stable compared to 2022. Commercial space transactions were
fewer but higher in value, totaling €121 million, representing 2% of the total
market value.

Geographic
Distribution

According to
Deloitte, Limassol continued to lead the market, contributing 41% of the total
sales value. All cities except Larnaca recorded marginally lower sales values
compared to 2022. Larnaca showed a remarkable increase in sales value,
surpassing 2022 by 28%, driven by an increased number of transactions and
higher average transaction values. This marks the third consecutive year of
growth for Larnaca, with both value and volume of transactions nearly doubling
since 2020.

REALTYon Expo

Leveraging the ongoing boom, the REALTYon Expo is currently taking
place at the City of Dreams Mediterranean Integrated Resort.

The expo is renowned for connecting property developers, real
estate agents, investors, and home buyers with the latest property developments
in Cyprus. This year’s event, held from July 3 to 4, features a comprehensive
conference with industry leaders discussing innovative solutions, a vast
exhibition space showcasing over 70 exhibitors and over 300 projects, and
extensive networking opportunities. The Expo is forecast to be 30% larger than
last year.

Prominent speakers include Marios Tannousis, CEO of Invest
Cyprus; Stavros Caramondanis, CEO of Ayia Napa Marina; George
Chrysochos, Executive Director of Cyfield Group; Demos Panayiotou, CEO
at Limassol Greens, Anastasia Yianni, CEO of Cyprus Sotheby’s
International Realty; Monica Ioannidou Polemitis, Founder & CEO of
Hybrid ConsulTech, and many more.

One of the panels at the REALTYon Expo.

The Speaker Forum offers talks titled ‘From Bricks to Bytes:
PropTech is Making Real Estate Accessible’, ‘Breaking Down Barriers: The Rise
of Tokenization in Real Estate’, ‘Real Estate Surviving the Geopolitical &
the Economic Turmoil’, ‘How to Move to Cyprus and Invest in Real Estate’,
‘Building a Greener Future: The Role of ESG in Real Estate’, among others.

With over 3,000 attendees anticipated, including a significant
number of international investors, REALTYon is the premier event for exploring
Cyprus’s flourishing real estate sector.

Factors Driving the Real Estate Boom

Favorable Tax
Policies and Economic Growth: Cyprus’s tax regime is a significant factor
attracting investors to its real estate market. The country offers several
incentives, including low corporate tax rates, no inheritance tax, and
favorable VAT rates for first-time property buyers. Additionally, Cyprus’s
economic growth has been robust, providing a stable environment for real estate
investments. The country’s strategic location at the crossroads of Europe,
Asia, and Africa further enhances its appeal as a real estate investment hub.

Strategic
Location and an Appealing Lifestyle: Cyprus’s strategic location not only
facilitates business but also makes it a desirable place to live. The island offers
a high quality of life, beautiful scenery, and a Mediterranean climate, all of
which are significant draws for foreign buyers. In addition to this, Cyprus’s
healthcare system is resilient, and the island’s infrastructure is generally excellent.

The REALTYon Expo featured developers from across Cyprus.

The
Impact of Foreign Investment

Foreign
investment has been a cornerstone of the real estate boom in Cyprus.
International buyers are particularly attracted to the island’s investor
immigration permit
, which offers residency and citizenship incentives for
significant real estate investments or for establishing businesses. Similar
programs have been instrumental in driving the inflow of capital into the real
estate sector in recent years, with many foreign investors purchasing
high-value properties.

However, it must
be noted that PwC reports falling high-end residential sales from its 2023
data. PwC reported
that sales of properties valued at €1.5 million and up saw a decrease of 26%
compared to 2022.

The presence of
international schools and business facilities makes Cyprus an attractive
destination for expatriates and their families.

Sustained
Interest from European and Asian Investors

Investors from
Europe and Asia continue to show strong interest in Cypriot real estate. The Cyprus
Mail notes that the country’s EU membership and stable political environment
make it a safe and attractive investment destination. Moreover, the island’s
proximity to major global markets enhances its appeal to international
investors seeking to diversify their portfolios.

Luxury apartments and strong business facilities are attracting investors and businesspeople.

Government
Initiatives and Sustainable Development

The Cypriot
government has also introduced several initiatives to support sustainable
development in the real estate sector. These include incentives for green
building practices and infrastructure projects aimed at enhancing the island’s
urban and rural environments. These initiatives are expected to contribute to
the long-term growth and sustainability of the real estate market in Cyprus.

Cyprus’s real
estate market is booming, driven by favorable tax policies, a strategic
location, and a high quality of life. The residential sector, in particular, is
experiencing strong growth, with rising property prices and high demand for
luxury developments. Foreign investment plays a crucial role in this boom, with
international buyers attracted by the country’s incentives and stable
environment. Despite economic challenges, the sector proved resilient in 2023,
and the future outlook for the rest of 2024 remains positive. With continued
government support and sustainable development initiatives, Cyprus’s real
estate market seems poised for ongoing growth and success.

For more finance-adjacent stories, visit our Trending section.

Cyprus is
experiencing a significant real estate boom, attracting both domestic and
international investors. With its favorable tax policies, strategic location,
and growing economy, Cyprus has become a prime destination for real estate
investments.

Despite global
economic uncertainties, Cyprus’s real estate sector demonstrated remarkable
resilience in 2023. According to a report
by PwC Cyprus
, the market remained robust despite global turmoil, with
steady property transactions and sustained investor interest. This resilience
set a positive tone for 2024, with expectations of continued growth and
stability in the sector. According to PwC, last year the total value of transactions reached €5.5
billion, which would sit at approximately the same value as 2022.

According to Deloitte’s
annual
Real Estate Review
, transactions actually grew in 2023. The company
reported a total of 13,200 transactions in the residential sector, amounting to
€3.4 billion in sales, which accounted for 61% of the total sales value. The
average transaction value increased slightly to €259,000 from €257,000 in 2022,
driven primarily by new build properties, which comprised 69% of residential
sales.

The REALTYon Expo is running in Limassol.

The total real
estate market in Cyprus saw 25,400 transactions worth €5.6 billion, the report
stated. Transactions involving vacant land (plots and fields) were the second
most popular, with €1.9 billion across 11,200 transactions, making up 34% of
the total value. Although the number of land transactions increased, their
value remained stable compared to 2022. Commercial space transactions were
fewer but higher in value, totaling €121 million, representing 2% of the total
market value.

Geographic
Distribution

According to
Deloitte, Limassol continued to lead the market, contributing 41% of the total
sales value. All cities except Larnaca recorded marginally lower sales values
compared to 2022. Larnaca showed a remarkable increase in sales value,
surpassing 2022 by 28%, driven by an increased number of transactions and
higher average transaction values. This marks the third consecutive year of
growth for Larnaca, with both value and volume of transactions nearly doubling
since 2020.

REALTYon Expo

Leveraging the ongoing boom, the REALTYon Expo is currently taking
place at the City of Dreams Mediterranean Integrated Resort.

The expo is renowned for connecting property developers, real
estate agents, investors, and home buyers with the latest property developments
in Cyprus. This year’s event, held from July 3 to 4, features a comprehensive
conference with industry leaders discussing innovative solutions, a vast
exhibition space showcasing over 70 exhibitors and over 300 projects, and
extensive networking opportunities. The Expo is forecast to be 30% larger than
last year.

Prominent speakers include Marios Tannousis, CEO of Invest
Cyprus; Stavros Caramondanis, CEO of Ayia Napa Marina; George
Chrysochos, Executive Director of Cyfield Group; Demos Panayiotou, CEO
at Limassol Greens, Anastasia Yianni, CEO of Cyprus Sotheby’s
International Realty; Monica Ioannidou Polemitis, Founder & CEO of
Hybrid ConsulTech, and many more.

One of the panels at the REALTYon Expo.

The Speaker Forum offers talks titled ‘From Bricks to Bytes:
PropTech is Making Real Estate Accessible’, ‘Breaking Down Barriers: The Rise
of Tokenization in Real Estate’, ‘Real Estate Surviving the Geopolitical &
the Economic Turmoil’, ‘How to Move to Cyprus and Invest in Real Estate’,
‘Building a Greener Future: The Role of ESG in Real Estate’, among others.

With over 3,000 attendees anticipated, including a significant
number of international investors, REALTYon is the premier event for exploring
Cyprus’s flourishing real estate sector.

Factors Driving the Real Estate Boom

Favorable Tax
Policies and Economic Growth: Cyprus’s tax regime is a significant factor
attracting investors to its real estate market. The country offers several
incentives, including low corporate tax rates, no inheritance tax, and
favorable VAT rates for first-time property buyers. Additionally, Cyprus’s
economic growth has been robust, providing a stable environment for real estate
investments. The country’s strategic location at the crossroads of Europe,
Asia, and Africa further enhances its appeal as a real estate investment hub.

Strategic
Location and an Appealing Lifestyle: Cyprus’s strategic location not only
facilitates business but also makes it a desirable place to live. The island offers
a high quality of life, beautiful scenery, and a Mediterranean climate, all of
which are significant draws for foreign buyers. In addition to this, Cyprus’s
healthcare system is resilient, and the island’s infrastructure is generally excellent.

The REALTYon Expo featured developers from across Cyprus.

The
Impact of Foreign Investment

Foreign
investment has been a cornerstone of the real estate boom in Cyprus.
International buyers are particularly attracted to the island’s investor
immigration permit
, which offers residency and citizenship incentives for
significant real estate investments or for establishing businesses. Similar
programs have been instrumental in driving the inflow of capital into the real
estate sector in recent years, with many foreign investors purchasing
high-value properties.

However, it must
be noted that PwC reports falling high-end residential sales from its 2023
data. PwC reported
that sales of properties valued at €1.5 million and up saw a decrease of 26%
compared to 2022.

The presence of
international schools and business facilities makes Cyprus an attractive
destination for expatriates and their families.

Sustained
Interest from European and Asian Investors

Investors from
Europe and Asia continue to show strong interest in Cypriot real estate. The Cyprus
Mail notes that the country’s EU membership and stable political environment
make it a safe and attractive investment destination. Moreover, the island’s
proximity to major global markets enhances its appeal to international
investors seeking to diversify their portfolios.

Luxury apartments and strong business facilities are attracting investors and businesspeople.

Government
Initiatives and Sustainable Development

The Cypriot
government has also introduced several initiatives to support sustainable
development in the real estate sector. These include incentives for green
building practices and infrastructure projects aimed at enhancing the island’s
urban and rural environments. These initiatives are expected to contribute to
the long-term growth and sustainability of the real estate market in Cyprus.

Cyprus’s real
estate market is booming, driven by favorable tax policies, a strategic
location, and a high quality of life. The residential sector, in particular, is
experiencing strong growth, with rising property prices and high demand for
luxury developments. Foreign investment plays a crucial role in this boom, with
international buyers attracted by the country’s incentives and stable
environment. Despite economic challenges, the sector proved resilient in 2023,
and the future outlook for the rest of 2024 remains positive. With continued
government support and sustainable development initiatives, Cyprus’s real
estate market seems poised for ongoing growth and success.

For more finance-adjacent stories, visit our Trending section.

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