Cyprus has witnessed a flourishing economy in recent years (2015-2019), while the island’s fiscal performance continued to surpass initial expectation. It has continued to exhibit a solid growth and has maintained its status as one of the fastest growing economies in Europe. This is largely due to the government’s legislation and fiscal policy regarding economic growth in Cyprus.
Given the significance of the real estate sector for the Cypriot economy (including construction activities) has contributed c. 38,5% of the annual growth rate and 16% of the Cypriot economy Gross Value Added. Limassol which is considered to be the capital of international business had the highest share (37%) of the market for 2018, same as in 2017. The issuance of new building permits exhibits an increase in numbers over the last few years but even more so in value, Limassol is the leading city with 31% of the total real estate investment in Cyprus.
Interest from foreigners, and predominantly from non-EU buyers, continued to be a driving force for the market. The high-end residential property segment continued to be momentous, primarily fueled by the continuation of the government schemes encouraging investments in Cyprus.
In 2018, a total of 4,367 contracts of sale were submitted to the Department of Lands and Surveys (DLS) by non-nationals, accounting for 47% of total sales contracts. 2019 started on a similar trend, with an 11% increase in sales, compared to the corresponding 2018 period.
As per the Central Bank of Cyprus index apartments in Limassol exhibit an 8,6% year – on – year increase, residential yields both for apartments and houses have been relatively steady, according to Royal Institution of Chartered Surveyors (RISC).
(Copyright PWC & KPMG annual real estate reports that were published in April 2019)