Cyprus real estate market: non-EU citizens drive property sales surge

In the month of August, the Cyprus property market saw an interesting twist. According to fresh data from the Department of Lands and Surveys, one-third of all property sales were snapped up by non-European Union (EU) citizens. Let's break down the details.

Non-EU residents are increasing demand

The stats for property sales to non-EU citizens are making headlines. In August alone, sales to non-EU nationals surged by a whopping 34% compared to the same period in 2022. Impressively, these transactions accounted for a significant 30% of the total sales in the month.

While Limassol experienced a slight dip of 15% in sales, the other four districts saw healthy growth. Paphos led the pack with the highest number of property sales, followed by Larnaca, Limassol, Famagusta, and Nicosia.

Zooming out to the bigger picture, sales to non-EU nationals during the first eight months of 2023 reached 3,385, marking an impressive 76% increase from the 1,921 sales recorded during the same period last year.

EU citizens take a backseat

On the flip side, property sales to EU citizens experienced a downturn in August. The numbers dropped by 16% compared to August 2022, with sales sliding across all districts, except Larnaca and Nicosia, where they witnessed a notable upswing of 35% and 22%, respectively.

Once again, Paphos emerged as the preferred district for EU nationals, followed by Limassol, Larnaca, Famagusta, and Nicosia. However, total sales to EU nationals during the first eight months of 2023 amounted to 1,300, showing a 22% decrease from the 1,657 transactions during the same period in 2022.

Overall real estate market performance

Considering the broader perspective, real estate sales to foreign buyers, encompassing both EU and non-EU citizens, registered a remarkable 34% increase compared to August 2022, despite the 16% drop in sales to EU citizens.

In this scenario, all districts enjoyed a boost in sales except for Limassol, which saw a 15% decline. Paphos retained its crown as the leader in foreign property sales, trailed by Larnaca, Limassol, Famagusta, and Nicosia. Total foreign real estate sales for the first eight months of 2023 amounted to 4,685, marking a notable 31% surge from the 3,578 transactions recorded in the same period last year.

Local market recovery

On the home front, real estate sales to the domestic market experienced a noteworthy 19% rise in August compared to the previous year, although Limassol reported a marginal 4% decline.

Despite the dip, Limassol continued to maintain its stronghold as the district with the highest number of sales, followed by Nicosia, Larnaca, Paphos, and Famagusta. Cumulatively, sales to the domestic market for the first eight months of 2023 stood at 5,498, reflecting a 13% increase from the 4,875 transactions recorded during the same period last year.

With non-EU citizens becoming more significant participants in property purchases, the Cyprus real estate market appears to be navigating through shifting waters. Although sales to EU citizens have decreased, the market as a whole is still strong, with both domestic and foreign purchasers displaying a solid hunger for Cyprus real estate.