Property

January 18, 2023

Reading Time: 3 min

How did the demand for real estate in Cyprus change in 2022?

22,129 properties were sold in Cyprus last year. The total amount of transactions amounted to about 5.85 billion euros, according to the country’s land department.

We explain the Cyprus real estate market dynamic in 2022 and forecasts for 2023.

Igor Buglo
Igor Buglo

Head of the Maltese office, MBA

Cyprus permanent residence for investors and families by real estate investment

How did the demand for real estate in Cyprus change in 2022?

The Cyprus real estate market showed resilience and growth throughout 2022, despite inflation and rising mortgage interest rates. Property sales on the island reached a 14‑year high.

The increase in Cyprus’ real estate sales greatly depended on foreign investors. Some of them bought real estate to participate in the permanent residence by investment program.

Many large IT companies also moved their headquarters to the island, contributing to the demand for commercial properties. According to local real estate experts, the number of foreigners who invested in real estate in Cyprus has doubled.

How many properties were sold in Cyprus

2022 was a record year in terms of real estate sales over the past 14 years. Additionally, sales figures increased every quarter.

The largest number of real estate properties was sold in the fourth quarter: the Land Department registered 5,883 purchase and sale agreements. Transactions amounted to about 1.7 billion euros.

Dynamics of Cyprus real estate sales in 2022

Period

Number of transactions

Revenue

First quarter

5883

1.7 billion euros

Second quarter

5566

1.65 billion euros

Third quarter

5422

1.2 billion euros

Fourth quarter

5258

1.3 billion euros

In which Cyprus cities real estate was bought most often

The highest real estate demand is recorded in the major Cyprus cities — Limassol and Nicosia. At the same time, sales increased in other cities of the island, as Larnaca, Paphos and Famagusta were popular with investors.

Top 5 cities in Cyprus by property sales volume

City

Number of transactions

Revenue

Limassol

6945

2.86 billion euros

Nicosia

6237

1.2 billion euros

Larnaca

4160

666.2 million euros

Paphos

3593

890.4 million euros

Famagusta

1194

238.4 million euros

What to expect from the Cyprus real estate in 2023?

Real estate experts believe that the Cyprus real estate market will face new challenges in 2023. The country’s parliament is considering a bill that provides for the real estate transactions VAT increase. These changes may affect property demand and costs.

The Cyprus property market will also continue to be affected by inflation, rising interest rates and the cost of construction materials. The 2022 experience, which showed that the real estate market can grow even in a difficult geopolitical situation in the world, will help overcome these difficulties.

Demand from foreigners looking to invest in the Cyprus real estate sector will continue to grow. They are attracted by the high profitability of properties, which is from 6 to 8% per annum.

Elena Ruda

Elena Ruda,

Chief Development Officer in Immigrant Invest, lawyer

Real estate in Cyprus remains a lucrative investment as property prices continue to rise. The house price index rose 5.3% year‑on‑year in the third quarter of 2022, according to the latest data from the country’s Statistical Service.

The cost of luxury real estate in Cyprus increased by an average of 10%. Such properties are always in demand among foreign investors.

When buying a property worth €300,000 or more, investors can get a permanent residence permit in the country. To do this, they need to take part in the permanent residence by investment program.

How to get permanent residence in Cyprus for the purchase of real estate

Cyprus has a permanent residence by investment program. Investing in real estate is one of the program’s options.

The program terms allow buying both residential and commercial real estate. Investors can purchase one or two properties starting from €300,000 on the primary real estate market. Secondary properties can’t be invested in.

When buying commercial property, investors need to also buy or rent residential property on the island.

Immigrant Invest has its own real estate database from trusted developers in Cyprus. Among other things, we offer properties at the excavation stage, which can be purchased without commission.

Immigrant Invest is a licensed agent of state programs of the European Union. If you want to buy a property in Cyprus and become a resident of the country, please consult the experts in investment programs.