The Cypriot real estate market shows a significant recovery despite the uncertainty in the economic environment triggered by the energy crisis with investors from Europe, but also Arab countries putting Cyprus in the frame of their investments.

As evidenced by data from the Land and Survey Department for the sales documents made public, the eleven months of 2022 were the best for the industry since 2008.

According to the data presented in StatWatch, the sales documents submitted to the Land and Survey Department in the eleven months of 2022, amount to 12074 items, up from 9063 last year, recording an increase of 33%.

These are the best eleven months since 2008, when sales reached 14043 items.

Tassos Yiasemidis, economist, tells StockWatch that the statistics published by the Land and Survey Department show significant mobility in the real estate sector.

He notes that there is significant interest from foreign investors for relatively small properties/apartments as long as the rent-based returns as they are at the moment are quite high. "In addition, interest from Europe and Arab countries in luxury homes, but possibly of lower value compared to the last five years, is growing," he says.

Sales documents to foreigners amount to 5283 this year, up from 3169 last year, recording an increase of 66.7%, while sales to locals to 6791, from 5894 last year with an increase of 15.2%.

As far as new construction is concerned, he points out, significant challenges arise, with the main ones being the significant increase in construction costs and aggressive interest rate hikes by Central Banks that inevitably move to lending rates.

He also points out that there is an increased interest in office spaces, which has led to significant investments recently in Limassol and Paphos. "Technology companies and the financial sector are transferring jobs and staff to Cyprus. In addition to the offices, the staff who are employed are looking for housing for their family", he notes.

He underlines that the course of the real estate and construction sector is always a topic of discussion between analysts, bankers and the government, since over time it has been one of the most important factors for the course of the Cypriot economy and the financial sector.

Compared to the eleven months of 2019, real estate sales show an increase of 27.7%.

The biggest increase of 66.2% was recorded this year in Paphos, with sales documents amounting to 2614, up from 1573 last year.

It is followed by Larnaca where sales increased by 47.3% reaching 2172, from 1475. Real estate sales in Limassol also increased by 44.4% and in Famagusta by 0.3%.

In Nicosia, a decrease of 0.4% was observed.

As for November, the sales documents filed amounted to 1293 compared to 1149 in November 2021, recording an increase of 13%. In October, the increase was 29%.

According to the data, in 2021, the sales documents filed amounted to 10347 items compared to 7968 in 2020, recording an annual increase of 29.9%.

Source:Stockwatch

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