Annual real estate transactions continued to rise in the first three months of the year, as sales documents submitted are 51.1% higher than those recorded in the same period pre-COVID 2019.
According to the latest Land Registry data, sales documents filed in Q1 2023 were 3574 units compared to 3009 in Q1 2022, registering an annual increase of 18.8%.
The latest boost in the island’s real estate sector has been attributed to the relocation of high-tech firms and their employees.
Sales to foreigners increased 33.6% in Q1 to reach 1706, from 1277 in 2022. Compared to 2019, sales to foreigners show an increase of 53.6%.
Local buyers stood at 1,868 this year from 1,732 in 2022 and 1,255 in 2019.
Industry professionals estimate that the strong investment interest abroad in the Cypriot real estate market continues to drive growth, pushing property prices up for the second year.
At the same time, the increase in interest rates works as a deterrent for the domestic market, putting the brakes on Cypriot buyers.
In recent comments to the Financial Mirror, Panos Danos FRICS, CEO of DANOS International Property Consultants & Valuers, confirmed the heightened demand by high-tech companies relocating to Cyprus and their staff.
“Increased mobility in the market is fuelled by the relocation of corporate headquarters to Cyprus, leading to a strengthening of prices and rents,” said Danos.
“Despite Cyprus’ real estate showing a significant recovery, the uncertainty triggered by the energy crisis is making the market a tough playing field for locals”.
The seasoned real estate agent noted that a 20% plus increase in construction costs and a hike in mortgage rates had prompted Cypriot households to think twice about borrowing money to buy their dream home as demand for mortgages dipped.
Larnaca boom
The largest annual increase of 33.6% was recorded in Larnaca, with sales documents reaching 684 in the first three months, up from 512 last year.
It is followed by Paphos, where sales increased by 33.1%, reaching 869 from 653. A 28.9% increase was also seen in property sales in the Famagusta district and 22.8% in Limassol, but in Nicosia, sales fell by 14.7%.
According to the data for March, sales documents filed stood at 1352 units compared to 1102 in March 2022, registering a year-on-year increase of 23%.
