Cyprus is experiencing a significant real estate boom, attracting both domestic and international investors. With its favorable tax policies, strategic location, and growing economy, Cyprus has become a prime destination for real estate investments.

2023 and On

Despite global economic uncertainties, Cyprus's real estate sector demonstrated remarkable resilience in 2023. According to a report by PwC Cyprus, the market remained robust despite global turmoil, with steady property transactions and sustained investor interest. This resilience set a positive tone for 2024, with expectations of continued growth and stability in the sector. According to PwC, last year the total value of transactions reached €5.5 billion, which would sit at approximately the same value as 2022.

According to Deloitte's annual Real Estate Review, transactions actually grew in 2023. The company reported a total of 13,200 transactions in the residential sector, amounting to €3.4 billion in sales, which accounted for 61% of the total sales value. The average transaction value increased slightly to €259,000 from €257,000 in 2022, driven primarily by new build properties, which comprised 69% of residential sales.

The total real estate market in Cyprus saw 25,400 transactions worth €5.6 billion, the report stated. Transactions involving vacant land (plots and fields) were the second most popular, with €1.9 billion across 11,200 transactions, making up 34% of the total value. Although the number of land transactions increased, their value remained stable compared to 2022. Commercial space transactions were fewer but higher in value, totaling €121 million, representing 2% of the total market value.

Geographic Distribution

According to Deloitte, Limassol continued to lead the market, contributing 41% of the total sales value. All cities except Larnaca recorded marginally lower sales values compared to 2022. Larnaca showed a remarkable increase in sales value, surpassing 2022 by 28%, driven by an increased number of transactions and higher average transaction values. This marks the third consecutive year of growth for Larnaca, with both value and volume of transactions nearly doubling since 2020.

REALTYon Expo

Leveraging the ongoing boom, the REALTYon Expo is currently taking place at the City of Dreams Mediterranean Integrated Resort.

The expo is renowned for connecting property developers, real estate agents, investors, and home buyers with the latest property developments in Cyprus. This year’s event, held from July 3 to 4, features a comprehensive conference with industry leaders discussing innovative solutions, a vast exhibition space showcasing over 70 exhibitors and over 300 projects, and extensive networking opportunities. The Expo is forecast to be 30% larger than last year.

Prominent speakers include Marios Tannousis, CEO of Invest Cyprus; Stavros Caramondanis, CEO of Ayia Napa Marina; George Chrysochos, Executive Director of Cyfield Group; Demos Panayiotou, CEO at Limassol Greens, Anastasia Yianni, CEO of Cyprus Sotheby’s International Realty; Monica Ioannidou Polemitis, Founder & CEO of Hybrid ConsulTech, and many more.

The Speaker Forum offers talks titled ‘From Bricks to Bytes: PropTech is Making Real Estate Accessible’, ‘Breaking Down Barriers: The Rise of Tokenization in Real Estate’, ‘Real Estate Surviving the Geopolitical & the Economic Turmoil’, ‘How to Move to Cyprus and Invest in Real Estate’, ‘Building a Greener Future: The Role of ESG in Real Estate’, among others.

With over 3,000 attendees anticipated, including a significant number of international investors, REALTYon is the premier event for exploring Cyprus’s flourishing real estate sector.

Factors Driving the Real Estate Boom

Favorable Tax Policies and Economic Growth: Cyprus's tax regime is a significant factor attracting investors to its real estate market. The country offers several incentives, including low corporate tax rates, no inheritance tax, and favorable VAT rates for first-time property buyers. Additionally, Cyprus's economic growth has been robust, providing a stable environment for real estate investments. The country's strategic location at the crossroads of Europe, Asia, and Africa further enhances its appeal as a real estate investment hub.

Strategic Location and an Appealing Lifestyle: Cyprus's strategic location not only facilitates business but also makes it a desirable place to live. The island offers a high quality of life, beautiful scenery, and a Mediterranean climate, all of which are significant draws for foreign buyers. In addition to this, Cyprus’s healthcare system is resilient, and the island’s infrastructure is generally excellent.

The Impact of Foreign Investment

Foreign investment has been a cornerstone of the real estate boom in Cyprus. International buyers are particularly attracted to the island's investor immigration permit, which offers residency and citizenship incentives for significant real estate investments or for establishing businesses. Similar programs have been instrumental in driving the inflow of capital into the real estate sector in recent years, with many foreign investors purchasing high-value properties.

However, it must be noted that PwC reports falling high-end residential sales from its 2023 data. PwC reported that sales of properties valued at €1.5 million and up saw a decrease of 26% compared to 2022.

The presence of international schools and business facilities makes Cyprus an attractive destination for expatriates and their families.

Sustained Interest from European and Asian Investors

Investors from Europe and Asia continue to show strong interest in Cypriot real estate. The Cyprus Mail notes that the country's EU membership and stable political environment make it a safe and attractive investment destination. Moreover, the island's proximity to major global markets enhances its appeal to international investors seeking to diversify their portfolios.

Government Initiatives and Sustainable Development

The Cypriot government has also introduced several initiatives to support sustainable development in the real estate sector. These include incentives for green building practices and infrastructure projects aimed at enhancing the island's urban and rural environments. These initiatives are expected to contribute to the long-term growth and sustainability of the real estate market in Cyprus.

Cyprus's real estate market is booming, driven by favorable tax policies, a strategic location, and a high quality of life. The residential sector, in particular, is experiencing strong growth, with rising property prices and high demand for luxury developments. Foreign investment plays a crucial role in this boom, with international buyers attracted by the country's incentives and stable environment. Despite economic challenges, the sector proved resilient in 2023, and the future outlook for the rest of 2024 remains positive. With continued government support and sustainable development initiatives, Cyprus's real estate market seems poised for ongoing growth and success.

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