In summary, the new property tax implemented in 2021 is a 0.4 percent levy on the sales price of properties, paid by the seller. This tax adds to the financial burden in real estate transactions, potentially impacting profit margins and indirectly affecting property prices. The implementation of the tax has caused confusion and debates about its fairness and consistency in the real estate market.
The real estate market in Cyprus is experiencing a shift as foreign investors are turning their attention to the northern occupied territories where property prices are more affordable. Despite ongoing conflicts in the region, cost considerations are outweighing geopolitical concerns for many buyers, leading to a redirection of foreign investment and the need for the government to address the issue to sustain the market’s growth.
The construction sector in Cyprus has seen a 7.5% decrease in permits but a 15.7% increase in total value, indicating a shift towards largerscale, more luxurious projects. This trend suggests investor confidence and a focus on the development of highvalue real estate, despite a tightened permit issuance.
The Cyprus real estate market has experienced a surge in property sales in 2023, with 8,681 property transfers and 9,374 sales documents registered. Limassol leads in sales value, while Nicosia has the highest number of property transfers. Paphos and Larnaca report steady growth, with Famagusta maintaining stability.
In the third quarter of 2023, Nicosia’s real estate market saw a surge in property sales, with a total value of €164.9 million. Apartments were the most popular, accounting for 492 sales worth €81.6 million, followed by houses, plots, and fields.
The Trikomo property market is experiencing soaring prices due to new luxury highrise developments, an influx of international buyers seeking refuge from regional conflicts, the “Famagusta, Trikomo, and Ayios Sergios Zoning Plan” regulating development, and historical complexities potentially reducing property supply. This surge in demand has led to apartments now selling for upwards of £200,000, marking a substantial rise from just a couple of years prior.
