260 high-end properties were sold in Cyprus (in excess of €1.5 billion) during 2017, which contributed to the wider recovery of the real estate industry and the rise in prices for the first time in several years.
The Cyprus economy relies heavily on the real estate sector, as Cyprus has one of the highest home ownership rates in Europe and there is a significant overseas market for holiday and second homes.
Since 2014 there were signs of improved confidence in the Cyprus economy and the real estate market, leading to increased transaction activity in the market.
A further significant increase was recorded in 2016 with a subsequent increase in 2017. The total number of contracts filed at the Department of Lands & Surveys during 2017 reached 8,734, an eight-year high (2016: 7,063). During 2017, the highest volume of properties for which sale contracts were filed by foreign buyers. Paphos has 36% volume of sales, followed by Limassol’s 34% and Larnaca’s 16%. That is a result of the revisions to the scheme for naturalization of investors in Cyprus.
Limassol continues to lead in the Hi-end sales distribution as it is the preferred location for high-end residential properties (approximately 52% of total transactions of 2017), followed by Paphos (36%) and then Famagusta (9%). Regarding the high-end sales, Nicosia and Larnaca represent the least active districts, with total transactions among the two districts representing 3% of total. As per Land Registry data, during 2017, 66% of high-end residential property transactions in Limassol related to apartments with the remainder 34% relating to villas. As regards to Paphos, almost entirely high-end residential transactions recorded in 2017 related to villas.
Demand for Cyprus properties in excess of €2 million continued to rise, largely as the result of the launch of new high-end residential developments in the market increasing the supply of units of this price range.