Larnaca Enjoys Remarkable Increase in Real Estate Sales
The Cyprus real estate market has shown impressive resilience and growth as 2023 wrapped up with a robust performance. A study by Deloitte, a ‘Big Four’ audit and advisory firm, revealed that the market closed the year with a staggering 25,400 transactions valued at €5.6 billion. This report, titled the Cyprus Real Estate Review, provides a detailed analysis of the market amidst significant economic events that have occurred both regionally and globally.
Residential transactions were identified as the powerhouse behind the industry’s success, accounting for 61% of the total market value, which translates to €3.4 billion from 13,200 transactions. Vacant land transactions also played a significant role, contributing €1.9 billion across 11,200 transactions. This maintained stability in total sales and even showed an increase in transaction volume compared to the previous year.
Commercial real estate transactions, though less frequent, registered higher values, summing up to €121 million and comprising 2% of the sector’s total value. Limassol continued its streak as the district with the highest contribution to total sales in value, claiming a 41% share.
However, it was Larnaca that stood out with a remarkable 28% increase in sales value. This surge was attributed to both an increase in transaction volume and a higher average transaction value. This marks Larnaca’s third consecutive year of growth.
Deloitte Cyprus’s survey results suggest that industry professionals are anticipating minimal changes in the real estate landscape for 2024. Apartments are still seen as the preferred investment choice, although there may be a decline in luxury apartments within high-rise developments.
George Martides, Financial Advisory and Real Estate Industry Leader at Deloitte Cyprus, highlighted the sector’s tenacity in the face of economic pressures such as inflation and interest rates. He underscored the critical need for collaboration between public and private sectors to tackle future challenges. Martides pointed out areas such as sustainable development, technological advancements, government reforms, bureaucracy, and affordable housing as key issues that require joint efforts.
Martides concluded with a note of cautious optimism, “These results instill 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 (AI), government reforms, bureaucracy, affordable housing – and to intensify our efforts in attracting new types of investment from both foreign and local investors.”
