Cyprus Sotheby’s International Realty has published its quarterly report analysing the performance of the Cyprus residential real estate market in the first half of 2023, using internal data and data from the Cyprus Land Registry.

According to the report, the total number of property transactions in Cyprus is growing, indicating the overall growing demand for real estate on the island from both domestic and foreign buyers. 

According to the Cyprus Land Registry, as of the end of June 2023, the number of sales contracts reached 7,689, compared to 6,263 this time last year.

The share of sales to foreign buyers increased – with 46.5 per cent of total property sales attributed to overseas buyers, resulting in a 36.1 per cent year-on-year increase.  

Foreign sales were mainly attributed to Limassol and Paphos, with 36 and 35 per cent of sales attributed to foreign buyers respectively. Domestic sales also grew in the first half of 2023, with a 13.1 per cent year-on-year increase.

In the first half of 2023, the property sales to non-EU citizens almost doubled when compared to this time last year with a total of 2608 transactions. 

According to Cyprus Sotheby’s International Realty survey, the top EU countries buying property in Cyprus were Germany, Austria, Poland and Greece. Looking at non-EU buyers, Cyprus was popular amongst British, Israeli, Russian and Ukraine buyers. 

The Permanent Residency through investment program is the key driver of demand from Russians and other non-EU citizens, while UK and EU buyers choose Cyprus for the lifestyle on offer, including the year-round sunny climate and the attractive cost of living.

The high-end property market in Cyprus also saw impressive growth in H1 2023, with transactions totalling 1,757. 

This sector accounted for 27 per cent of the total number of transactions – a rise of 12.6 per cent year-on-year. In terms of value the Cyprus residential real estate market reached EUR 1.7 billion in total sales in H1 2023. High-end properties accounted for a half of the total market by transaction value with EUR 936.2m – an increase by 0.7 per cent year-on-year.

With recent legislative changes, including changes to VAT and the permanent residency programme, there is a moderate outlook for the high end property market, and Cyprus Sotheby’s International Realty anticipate a slight negative trend in the short and medium term on the back of an extremely strong 2022.

Anastasia Yianni, CEO of Cyprus Sotheby’s International Realty, commented: “Cyprus’ high-end residential property market continues to demonstrate strong results. We have seen a stable demand for high-end residential property, both for houses and apartments, in all districts across Cyprus, from both domestic and international buyers. 

“Whilst recent legislative changes may have led to some uncertainty in the market, the traditional Cyprus market drivers such as lifestyle opportunities, the residency program and the healthy ROI potential of Cyprus properties are in force, and will support the market in the long-term.”