Real estate sales in Cyprus in 2021 are growing, but prices of properties continue to fall

June 21, 2021
Permanent residence in Cyprus: real estate market statistics for May 2021
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Foreigners bought 262 properties in Cyprus in May 2021. The number of transactions increased by 34% compared with May 2020. At the same time, housing prices fell by an average of 2.7% at the end of the first quarter of 2021. We tell you what cities have the most deals and why investors are buying property in Cyprus in 2021.

The Department of Land and Research of Cyprus has analyzed real estate sales for the five months of 2020 and 2021. It took into account the number of transactions made, sales by the city of the country, and the citizenship of buyers.

Sales of Cypriot real estate are steadily increasing in 2021. But if you compare the number of transactions in five months, the figures for 2021 are 8% lower than in 2020.

Dynamics of Cyprus real estate sales to foreigners

Cyprus: real estate sales to foreigners in 2020-2021
Source: Cyprus Department of Land and Research

Demand for real estate in major cities of Cyprus. In the capital, Nicosia in May 2021 sold 159% more properties than in May 2020. Larnaca – in second place with an increase of 84%, Limassol – in third place with 51%.

Famagusta is the only major city in Cyprus, which showed a negative trend in demand for real estate. Sales of properties in the city fell by 70% in May 2021, when compared with the results for May 2020.

Real estate sales in Cyprus cities in May 2020 and 2021

Cyprus: property sales in different cities of the country in May 2020 and 2021
Source: Cyprus Department of Land and Research

If we compare real estate sales from January to May 2020 and 2021, the number of transactions has increased in Nicosia and Larnaca. In other cities, the number of transactions decreased. Most affected was the real estate market of Famagusta, a port city located 80 kilometers from the capital Nicosia.

Real estate sales in Cypriot cities in the five months of 2020 and 2021

Cyprus: property sales in different cities of the country from January to May 2020 and 2021
Source: Cyprus Department of Land and Research

Citizens of what countries most often buy property in Cyprus in 2021

Citizens and residents of EU countries have bought more than half of the Cypriot real estate sold in May 2021. With them, concluded on 177% more transactions of purchase and sale of real estate than in May 2020.

From January to May 2021 EU citizens have bought 32% more Cypriot property than during the same period in 2020.

Dynamics of sales of Cypriot real estate to citizens of the European Union

Cyprus: real estate sales to EU citizens from January to May 2020 and 2021
Source: Cyprus Department of Land and Research

Non-EU citizens bought 18% less Cypriot real estate in May 2021 than in May 2020. If you compare the sales for five months, the number of transactions fell by 28%.

Dynamics of Cypriot real estate sales to citizens of countries that are not members of the European Union

Cyprus: real estate sales to third-country nationals from January to May 2020 and 2021
Source: Cyprus Department of Land and Research

Why investors are buying real estate in Cyprus in 2021

Vacation and rental property. Cyprus is a popular tourist destination in Europe. Four million tourists visited Cyprus in 2019. One-third of them are British citizens and residents. Russians, Israelis, and Greeks follow in the number of vacationers. The data is provided by the Cyprus Statistical Service.

Wealthy people prefer to have their own homes in Cyprus in order to come to vacation on the island at any time. Investors also buy properties to rent out. These two factors explain the increase in property sales in Cyprus, which welcomes foreign tourists from May 10, 2021.

Revenue from the rental of real estate in Cyprus averaged from 4.7% to 5.6% per annum. At the same time, the average cost of renting an apartment with three bedrooms is € 963 per month

From 4,7% p.a.

Investor's income from renting out Cypriot real estate

Permanent residence in Cyprus by investment in real estate. Until November 2020 investors from third countries were buying real estate in Cyprus in order to participate in the citizenship program by investment. The government closed the program, so the demand for Cypriot real estate fell among non-EU citizens.

But investors still have the opportunity to get a Cyprus residence permit. To get a residence permit, you need to buy housing on the island for the amount of €300,000 or more. The investor can live on the island itself or rent out the property.

Prices for city apartments fell by 0.5% for the year, while prices for apartments in resort areas fell by 1.2% at the end of the first quarter of 2021. The cost of country houses and villas fell by 3.2%. These statistics lead WiRE – an independent consulting company that evaluates real estate markets in Cyprus and Greece.

For 2.7%

the average price of housing in Cyprus fell

In June 2021 the highest prices for housing – in Limassol. Apartments in the city center on average cost about €200,000-300,000. A two-story villa with its own swimming pool will cost about 1-2 million euros.

Average price per square meter when buying an apartment in the city center in Cyprus

City Price per m² in June 2021
Limassol €2762
Nicosia €1771
Paphos €1700
Larnaca €1575
Famagusta €1019

Immigrant Invest real estate experts recommend not to put off buying a home in Cyprus for the second half of 2021. While demand and prices remain low, the investor is available more facilities at an attractive price. And the status of a resident of the country – a member of the European Union will be a bonus to the purchase.

Residents of Cyprus have the right to live, do business, and study in the country without restrictions. The holder of a permanent residence card can apply for citizenship after five years. Together with a Cypriot passport, he will have freedom of movement in 176 countries, including the Schengen zone, Britain, Japan, Hong Kong, and Singapore.

Permanent residence in Cyprus by investment in real estate: the example of the villa

Villa in a residential complex of premium class two kilometers from the center of Paphos. Price - from €425,000

Permanent residence in Cyprus by investment in real estate: an example of apartments

Apartments in the golf club in Limassol. Price - from €220,000

Permanent residence in Cyprus by investment in real estate: an example of apartments

Apartments in a residential complex at the entrance of Nicosia. Price - from €289,000

Permanent residence in Cyprus by investment in real estate: the example of the villa
Permanent residence in Cyprus by investment in real estate: an example of apartments
Permanent residence in Cyprus by investment in real estate: an example of apartments

Immigrant Invest helps you get permanent residency in Cyprus by investment. If you want to become a resident of a European Union member country, seek advice from experts in investment programs.

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