The PwC Cyprus Annual Real Estate Report for 2023 shows a strong real estate market in Cyprus, with transactions reaching €5.5 billion. While the high-end market saw a decline, the Larnaca district experienced a 22% increase, and foreign property acquisitions rose by 16%, emphasizing Cyprus’s appeal for business.
What does the PwC Cyprus Annual Real Estate Report say about the market’s performance in 2023?
The PwC Cyprus Annual Real Estate Report reveals that despite global economic challenges, Cyprus’s real estate market remained robust in 2023, with transactions worth €5.5 billion. The Larnaca district saw a 22% increase, and foreign property acquisitions rose by 16%, highlighting Cyprus’s appeal as a business location. However, the high-end market contracted, with a 26% drop in sales of properties over €1.5 million.
PwC Cyprus Annual Real Estate Report Overview
The esteemed advisory firm PwC Cyprus has shed light on the Cypriot real estate market’s performance with their comprehensive annual report. The event, themed “Evolving landscape and the need for new policies and reforms,” was a pivotal moment for industry professionals, held at the PwC Experience Centre in Nicosia. It unfolded on the last Thursday of February 2024 and was marked by the presence of influential figures, including the Minister of Interior, who provided insights into new housing policies and considered reforms.
The report, a meticulous compilation of data, highlighted the market’s robustness through 2023. Despite global economic challenges, the real estate transactions remained consistent, mirroring the previous year’s figures, with a total value hitting the €5.5 billion mark. There was a remarkable upswing in the Larnaca district, boasting a 22% surge in transactions, while Paphos also saw a commendable 4% year-on-year increase. These gains offset the observed dip in activity within Limassol’s district.
District Insights and Foreign Investments
Delving deeper into the numbers, the residential property sector’s transaction value slightly declined by 1% from the prior year to around €3.9 billion. Nevertheless, the volume of transactions was notable: 9,600 apartments and 5,000 houses changed hands, accounting for 69% of the entire market’s transaction value. Underscoring the sector’s dynamism was the land segment, where transactions swelled by 11%, reaching €1.3 billion in value for 2023.
Stimulated by an influx of foreign entities setting up shop on the island, foreign buyers snapped up 6,900 properties, marking a noteworthy 16% increase from the previous year. This underscored Cyprus’s growing appeal as a business relocation destination. Notably, foreign property acquisitions had outpaced each month of 2022 until the final quarter, when geopolitical tensions led to a slight downturn.
High-End Market Dynamics and Future Outlook
Despite the overall sector’s stability, the high-end market experienced a contraction, with transactions for residential properties priced at €1.5 million and above declining by 26% year-over-year. Such properties witnessed only 164 transactions, contributing a modest 8% to the total transaction value. Factors influencing this segment’s performance are multifaceted and could include the broader economic climate and shifts in investor priorities.
Looking ahead amid the transformative currents, the real estate sector is poised to be a cornerstone of Cyprus’s economy, driving towards the aspirational Vision 2035. The sector’s stakeholders are adapting to a changing landscape, innovating in value creation and delivery. These evolutions are critical for sustaining Cyprus’s attractiveness for foreign direct investment and for meeting the nation’s present and future needs.
How did the different districts in Cyprus perform in terms of real estate transactions in 2023?
The PwC Cyprus Annual Real Estate Report for 2023 highlighted varying performances across districts in Cyprus. The Larnaca district stood out with a 22% increase in transactions, while Paphos experienced a 4% year-on-year increase. However, Limassol saw a decrease in activity during the same period.
What was the trend in foreign property acquisitions in Cyprus in 2023 according to the report?
Foreign property acquisitions in Cyprus saw a significant uptick in 2023, with a 16% increase compared to the previous year. This increase highlighted Cyprus’s appeal as a business relocation destination. Notably, foreign property acquisitions continued to rise steadily throughout most of 2022 before facing a slight downturn due to geopolitical tensions in the final quarter.
How did the high-end real estate market perform in Cyprus in 2023?
The high-end real estate market in Cyprus experienced a decline in 2023, with transactions for properties priced at €1.5 million and above dropping by 26% year-over-year. This segment accounted for only 8% of the total transaction value, indicating a contraction in this specific market.
What is the future outlook for the real estate sector in Cyprus, according to the report?
The real estate sector in Cyprus is expected to remain a key driver of the economy, aligning with the nation’s Vision 2035 aspirations. Stakeholders in the sector are adapting to a changing landscape, focusing on innovation in value creation and delivery to maintain Cyprus’s attractiveness for foreign direct investment and meet the country’s evolving needs.
