Press Release
Deloitte issued the Cyprus Real Estate Review, which presents an in-depth analysis of the real estate market in 2023. The report covers a critical economic period, factoring in important events in our region that affect both the local and the global economy. Furthermore, it examines the impact of other macroeconomic factors, such as the persistent inflation and higher interest rates.
2023 was a new record year for Cyprus’s real estate sector. The market closed with a total of 25,400 transactions and €5.6 billion in value. The continued growth is mainly due to real estate transactions in the residential space, accounting for 61% of the market’s total transactions value (€3.4 billion from 13,200 transactions). Vacant land transactions (plots and fields) follow, with sales of €1.9 billion across 11,200 transactions, accounting for 34% of the total value. This represents a stability in total sales value from 2022, despite the higher number of transactions. Finally, real estate transactions in the commercial space, although fewer compared to 2022, were higher in value, reaching €121million, which represents 2% of the total value of the sector.
With regards to districts-level performance, Limassol continued to dominate the market, accounting for 41% of total sales value. Except for Larnaca, all other cities recorded marginally lower sales values compared to 2022. Larnaca showed a remarkable increase in sales value, surpassing 2022 by 28%. This was due to both an increased number of transactions and a higher average transaction value. This is the third consecutive year that Larnaca has shown growth, almost doubling both in value and volume of transactions since 2020.
The report also presents the results of Deloitte Cyprus's real estate survey, based on the responses of local industry professionals. Findings indicated a consensus amongst respondents that no substantial changes are expected in the real estate landscape in 2024. Moreover, respondents noted that they still expect apartments to remain the most attractive investment opportunity over the next 12 to 18 months, however they anticipate that the market for luxury apartments in high-rise developments will most likely decline.
George Martides, Financial Advisory and Real Estate Industry Leader at Deloitte Cyprus, explained: "The steady and continuous growth of the real estate market as shown from our analysis, both in terms of transaction value and volume, showcases the resilience of the sector despite the various economic pressures, such as inflation, interest rates, and other external factors. These results instil optimism, but also a sense of responsibility to effectively address any future challenges - such as sustainable and green developments, the rapid growth of technology and Artificial Intelligence, government reforms, bureaucracy, affordable housing - and to intensify our efforts in attracting new types of investment from both foreign and local investors. All of these can be achieved through proper planning, collaboration and coordination between the private and public sectors".
The report is available in English on https://deloi.tt/4arqnqG
