PWC has recently presented its Cyprus Real Estate Market report for the first half of 2017 (the “report”)1. The report states that following a strong market performance in 2016, the first six months of 2017 continue to show improved confidence in the property sector as is evident by the increased activity levels, both in terms of transactions as well as issued building permits.
The main reasons for this impressive performance is the gradual recovery of the overall Cyprus economy, with a 2.8% growth rate recorded in 2016 and an even better 3.8% expected for 2017. Schemes encouraging investment by foreigners, as well as tax incentives, such as the reduction in the real estate transfer fees and the abolishment of immovable property tax, also contributed to the increased transaction activity2. The increased availability of financing at a relatively low cost has also played an important role in this.
The following are just a few of the impressive statistics presented in the report.
- 20% increase in sale contracts across Cyprus
- 106% increase in sale contracts filed by foreign buyers compared to first half of 2016 (mainly non-EU buyers coming from countries such as China, India, UAE and Russia)
- 59% increase in sale contracts for high-end residential properties compared to first half of 2016
- Limassol attracts around 60% of transactions in the high-end residential property segment
- Limassol also demonstrated the highest growth in number of sale contracts filed during the first half of 2017, with 33.4%
- 81% of high-end residential property transactions in Limassol related to apartments, with the remainder relating to villas.
- Demand for properties in excess of €3mln has been increasing over the years,
- The number of building permits exhibited a growth of 10% in number and a 34% in value terms during H1 2017
1. Source: “Cyprus Real Estate Market, First Half 2017, Key Market Highlights” – PWC, November 2017
2. For more details on incentives and other benefits available for investing in Cyprus please refer to our Practical Note 6: “Cyprus: Incentives for Investing – Relocating”