Real estate dynamics in Cyprus: Sales are rising, but signs of a slowdown are on the horizon

The report from the Cyprus Land Department on property sales in August 2023 has drawn attention to the real estate market situation on the island. It is projected that by the end of this year, Cyprus will secure the second position in terms of total sales in the history of observations.

However, it is essential to note some intriguing trends. In August of the current year, there was an increase in property sales volume compared to the same period last year, sparking some resurgence. Nevertheless, by the end of August, the year-to-date sales growth had decreased from 28%, as recorded at the end of June, to 20%. This indicates a slowdown in the real estate market's growth.

Apparently, the reason behind this deceleration is linked to rising interest rates and increasing construction costs. However, despite these apparent challenges, it is expected that Cyprus will still achieve the second-highest number of property sales in its history by the end of the year.

The latest official data from the Cyprus Land Department indicates that the volume of sold real estate properties in August 2023 (measured by the number of contracts filed with land registry offices) increased by 16% compared to August 2022. In this context, property sales encompass transactions related to residential homes, commercial spaces, offices, warehouses, and land (including fields and plots).

The total number of transactions in August 2023 reached 1,132, which is comparable to the 972 transactions registered in August 2022.

Regarding regions, property sales increased in all areas except Limassol, where there was a 6% decline. Nevertheless, Limassol continued to lead in terms of the number of transactions (327), followed by Larnaca (273), Paphos (252), Nicosia (208), and Famagusta (72).

In the first eight months of 2023, the overall number of transactions reached 10,183, representing a 20% increase compared to the 8,453 transactions recorded for the same period the previous year. This also marks the highest number of registered contracts since 2008 when 11,088 contracts were reported.

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