Andreas Andreou
The year is almost over, and we now have a good idea of how the real estate market performed in 2022. As we all know, the difficulties were and continue to be numerous. They appear to have benefited real estate investment in general, either because they were perceived as a safe haven against rising inflation, or because numerous opportunities are emerging in the Cyprus economy that predisposes to very good investment returns in the future. In any case, without accounting for the multiplier effect, these investments directly channeled nearly €4 billion of capital into the economy.
All of the appealing aspects of property as an investment vehicle, particularly in such adverse conditions, were covered in a series of articles published throughout the year. The positive resonance in real estate can also be viewed as a dowry of the outgoing government for the near future because the foundations for great things have been laid - assuming, of course, that they are properly managed and exploited.
Nicosia and Famagusta, which are primarily driven by Cypriot investors, appear to have moved steadily over the first eleven months of the year and will most likely end the year in the same manner.
So let's take a look at the most recent data. There were 1,484 property sales in November 2022. (transfers). So far, this has been an average month of the year. It is up 5.8% from the 1,403 sales in November 2021. With November's contribution, total year-to-date sales are 16,515 transfers.
In terms of sales documents (future transfers of transactions made), the Pancyprian picture for November is very good, with a total of 1,293 sales documents filed, a 13% increase over November last year, and a 33% increase year to date, bringing the total number of sales documents to 12,074.
In November, total transaction values hovered around €382.9m. In comparison to November 2021, when values were around €323.5m, this represents an 18.4% increase. This performance places November as the year's second-best month so far.
How does the overall performance for the month differ by province?
Nicosia had 439 sales with a total transaction volume of more than €77.2 million. In November, it had a 29.5% share of the total market in terms of sales and a 20.2% share of the transaction value. Nicosia recorded 460 transactions worth approximately €78.3 million in November of last year. With November's contribution, the year's total sales have reached 4,879 transfers and exchanged hands for properties worth approximately €823.5 million. Furthermore, Nicosia recorded 242 sales documents, which is 20% less than in November 2021. Overall, Nicosia is nearly unchanged from the same time last year.
Limassol recorded 415 sales for a total transaction volume of approximately €101.3 million. In November, it had a 28% share of the total market in terms of sales and a 26.5% share of the transaction value. Limassol recorded 376 transactions worth approximately €103 million in November of last year. With November's contribution, total sales for the year have reached 4,625 transfers and exchanged hands for properties worth approximately €1.3 billion. Furthermore, Limassol recorded 465 sale documents, which is 29% more than in November 2021. Limassol, on the other hand, is up 44% year on year, which is an excellent performance over the first eleven months of the year.
Larnaca had 269 sales with a total transaction volume of more than €40.1 million. In November, it had an 18.1% share of the total market in terms of sales volume and a 10.5% share of the transaction value. In November of last year, it recorded 256 transactions totaling more than €78.9 million. With November's contribution, total sales for the year to date totaled 2,990 transfers and properties worth approximately €507.8 million. Furthermore, Larnaca recorded 196 sale documents, which is 1% less than in November 2021. Overall, Larnaca is up 47% from the same eleven-month period last year.
Paphos had 271 sales with a total transaction volume of more than €89.5 million. In November, it had an 18.3% share of the total market in terms of sales and a 23.3% share in terms of the transaction value. It recorded 209 transactions with a total value of around €50.2.3 million in November of last year. With November's contribution, total sales for the year have reached 3,056 transfers and exchanged hands for properties worth approximately €731.6 million. Furthermore, Paphos recorded 317 sales documents, which is 56% more than in November 2021. Paphos is up 66% year on year compared to the same eleven-month period last year, and the province as a whole is experiencing a period of a new investment boom.
Famagusta recorded 90 sales totaling more than €74.9 million, an unusually high figure for this province. In November, it had a 6.1% share of the total market in terms of sales and a 19.5% share of the transaction value. In November of last year, it recorded 102 transactions totaling approximately €13.2 million. With November's contribution, total sales for the year have reached 965 transfers and exchanged hands for properties worth approximately €219 million. Furthermore, Famagusta recorded 73 sales documents, which is 14% less than in November 2021. Overall, Famagusta is nearly unchanged from the same time last year.
Nicosia and Famagusta, which are primarily driven by Cypriot investors, appear to have moved steadily over the first eleven months of the year and will most likely end the year in the same manner. The other three provinces with a significant foreign market share have maintained or regained momentum in attracting buyers from Europe and third countries, and as a result, have performed very well.
[This op-ed was translated from its Greek original]
