Kathimerini.com.cy
During the first quarter of 2023, the total value of properties sold was €1.7 billion. Despite facing numerous challenges that are starting to impact the real estate market, it has shown resilience, as indicated by the comparative property sales data compiled and presented in the quarterly "Real Estate Market Update" by the Real Estate Registration Board and Department of Lands and Surveys.
Specifically, in the first quarter of the year, properties worth €1.7 billion were sold in a total of 6188 transactions, which was the same as the value of properties sold in the fourth quarter of 2022, which was the best of last year. In the first quarter of 2022, properties worth €1.3 billion were sold.
The President of the Real Estate Registration Board, Marinos Keynegirou, stressed that caution is needed as "these performances should not distract and hide the big picture of the problems that plague the real estate market in Cyprus. As we have warned many times in the recent past, inflation, the rise in lending rates, the increased cost of construction materials and the new data with the reduced VAT rate of 5% for first homes are exerting downward pressure and affecting demand".
Nicosia remains stable
During the first quarter of the year, the Nicosia province saw a continuation of its Q4 2022 performance, with both the value (€257.5m) and volume of transactions (1,597) experiencing slight increases, but remaining generally stable. However, the capital city experienced a decline in the value of property sale transactions compared to the first quarter of 2022, when transactions with a total value of €313 million were processed.
Limassol maintains its growth momentum
In contrast to Nicosia, Limassol presents a different picture, with the value of sales transactions significantly increasing year-on-year, surpassing €908 million in the first quarter of 2023. It should be noted that in the same quarter of 2022, properties worth €587 million were sold in Limassol. Although there is a slight decrease in the value of transactions on a quarterly basis, the volume of transactions has slightly increased for the second consecutive quarter, remaining above €900 million.
Paphos gets stronger
The momentum in Paphos is gaining strength, as both the volume and value of transactions in the first quarter exhibit significant year-on-year and quarter-on-quarter growth. This indicates that the value of properties sold in Paphos city and district during the period under review has remained above €250 million for the third consecutive quarter.
Larnaca and Famagusta on the rise
The real estate market in Larnaca is also experiencing a surge, with a considerable year-on-year and quarterly increase in the volume and value of property sales transactions. The value of properties sold in the first quarter of 2023 exceeded €200 million, which is an improvement from €145 million in the corresponding quarter of 2022 and €160 million in the fourth quarter of the same year.
Similarly, in Famagusta province, there was an increase in the value of properties sold during the first quarter of the year (€57.3 million) compared to the same quarter in the previous year (€54 million).
Trends by province
The trends that dominated each province in the first quarter of 2023 can be reflected in the four main property categories. Strong momentum can be seen in the house market with 931 sales recorded in the first quarter, compared to the 2175 sales for the entire year of 2022. Paphos continues to show great momentum in the residential market and, together with Larnaca, leads in apartment sales. Limassol, on the other hand, leads the way in land and field sales transactions, followed by Nicosia.
