Annual real estate transactions in Cyprus continued to rise in the first quarter of the year, as sales documents submitted are 26.6% higher compared to the same period last year, according to the Real Estate Registration Board.
The Board’s latest quarterly report showed that 6,188 property transactions were recorded in Q1 this year with a total value of €1.7 bln, up from 1.3 bln in the first three months last year.
The latest boost in the island’s real estate sector has been attributed to the relocation of high-tech firms and their employees.
At a district level, only the capital did not see a significant boost in property sales.
Nicosia remained at the same levels as in Q1 2022, with the volume of transactions increasing slightly to 1,597. However, the value of transactions dropped as properties sold in Q1 this year were worth €257.5 mln, compared to 313 mln the same period last year.
In Limassol, the value of sales transactions in the first quarter of 2023 exceeded €908 mln for 2,097 transactions, increasing significantly on an annual basis.
In the corresponding quarter of 2022, properties worth €587 mln were sold in Limassol.
Paphos seems to be keeping the momentum of recent years, as both the volume and value of transactions in the first quarter of the year enjoyed a significant increase on an annual and quarterly basis.
Three consecutive quarters
The value of properties sold in the reporting period in the Paphos district remained above €250 mln for the third consecutive quarter.
Accordingly, the real estate market in Larnaca also saw a significant increase in the volume and value of transactions on an annual basis. The value of properties sold in the first quarter of 2023 was just over €200 mln, while in the corresponding quarter of 2022 it was €145 mln.
Famagusta district also saw an increase in the value of properties sold in the first quarter of the year, reaching €57.3 mln compared to €54 mln in the corresponding quarter last year.
In terms of property categories, the Real Estate Registration Board noted that the house market has built up momentum, reflected in the 931 sales recorded in Q1 this year. It noted that in the whole of 2022 there were 2,175 house sales.
Board President Marinos Kineyirou emphasised that caution is needed, as “these performances should not disorient stakeholders from the bigger picture of the problems plaguing the real estate market in Cyprus”.
Kineyirou warned that inflation, rising lending rates, and increased costs of building materials are applying downward pressure and impacting demand.