This publication provides information about the Cyprus economy in general and the Cyprus real estate market in particular. The publication provides a comprehensive analysis of the Cyprus real estate market, based on available market data up until December 2016 and using PwC’s rich and in-depth market expertise.
At PwC, we provide a ‘one-stop-shop’ solution offering, handling all issues relating to real estate, including investment support, M&A advisory, legal and tax structuring, valuation advice, as well as accounting advice on real estate assets and leases.
Our dedicated team comprises real estate professionals with robust local expertise. Combined with our strong international network, we are able to offer tailor-made solutions in support of our clients’ needs. Whether you are looking to develop, invest, own, lease or dispose real estate property, we can help you make the most suitable decision based on your specific circumstances and requirements.
The Real Estate and Construction sector, constitutes one of the main pillars of the Cypriot economy, accounting for 14,1% of the country's GVA in 2016. Following a period of severe market contractions, the number of real estate sale contracts dropped by 56% during the period 2010 - 2013. Throughout 2014 and 2015, there were signs of improved transaction activity and as a result of improved confidence in the Cyprus economy and the real estate market, a further significant increase was recorded in 2016 with total sales reaching a six-year high (YoY increase of 43%).
*Graph available on page 10 of the ''Cyprus Real Estate Market'' publication
Prices for both residential and commercial properties exhibited a negative trajectory since 2010, reflecting the declining trend in domestic as well as foreign demand. This negative trajectory continued until 2015. By 2016, price index movements demonstrated signs of stabilisation and marginal improvement.
*Graphs available on pages 12 & 13 of the ''Cyprus Real Estate Market'' publication
Throughout 2014 and 2015, demand from foreign buyers increased, demonstrating a CAGR of c15%. In 2016, a further significant increase was recorded with total properties reaching a six-year high (YoY increase of 34%). During 2016, the highest volume of properties for which sale contracts were filed by foreign buyers, was recorded in Paphos (35%), followed by Limassol (34%) and Larnaca (18%).
*Graph available on page 15 of the ''Cyprus Real Estate Market'' publication
Demand for high-end residential properties (>€1,5mln) increased substantially from 2014 onwards. By 2016, the number of high-end residential transactions had almost quadrupled compared to 2013. The majority of transactions in the high-end residential segment across Cyprus is within the €2mln - €3mln band and Limassol has been the preferred location, comprising 63% of total transactions in 2016.
*Graphs available on pages 16 & 17 of the ''Cyprus Real Estate Market'' publication
In terms of the construction activity, in line with Cyprus’ economic recovery and given increased demand for properties, building permits have exhibited CAGR of 4,2% during the 2-year period to 2016.The majority of building permits, measured by licensed surface area (m2), relate to residential developments in Limassol (which makes up more than a third of licensed surface in 2016).
*Graphs available on pages 18 & 19 of the ''Cyprus Real Estate Market'' publication