2023 Doing Business in Cyprus (UK Edition)
Create successful ePaper yourself
Turn your PDF publications into a flip-book with our unique Google optimized e-Paper software.
DOING BUSINESS C YPRUS<br />
53<br />
UNITED KINGDOM EDITION<br />
<strong>Cyprus</strong> has long been a firm favourite for property buyers worldwide thanks to its<br />
high quality of life, safe environment and Mediterranean climate. In addition, the<br />
country’s EU membership, its thriv<strong>in</strong>g <strong>in</strong>ternational bus<strong>in</strong>ess centre and strategic<br />
position at the crossroads of three cont<strong>in</strong>ents rema<strong>in</strong> key pull-factors for residential<br />
buyers, relocat<strong>in</strong>g companies, and <strong>in</strong>vestors alike.<br />
Property sales have rema<strong>in</strong>ed strong <strong>in</strong> the last year despite ris<strong>in</strong>g <strong>in</strong>terest rates. In<br />
the first three quarters of <strong>2023</strong> real estate sales <strong>in</strong> <strong>Cyprus</strong> rose year on year by a robust<br />
19.9%. While Limassol had the largest absolute number of sales <strong>in</strong> January-September<br />
(3,842), the largest <strong>in</strong>crease was <strong>in</strong> the up-and-com<strong>in</strong>g coastal town of Larnaca, where<br />
sales saw a year-on-year <strong>in</strong>crease of 36.4%.<br />
Sales to Cypriots cont<strong>in</strong>ue to dom<strong>in</strong>ate, account<strong>in</strong>g for 54% of the total <strong>in</strong> the<br />
first three quarters of <strong>2023</strong>. Sales to Cypriots have been driven both by government<br />
subsidies, for example, for first-time buyers, but also by steady growth <strong>in</strong> the household<br />
population. However, <strong>in</strong> terms of growth, sales to non-EU citizens grew most quickly<br />
<strong>in</strong> <strong>2023</strong>, ris<strong>in</strong>g by 67.6% year on year <strong>in</strong> the first n<strong>in</strong>e months of <strong>2023</strong>, with reports of<br />
<strong>in</strong>creas<strong>in</strong>g demand from Lebanon and Israel.<br />
REAL ESTATE SALES BY REGION<br />
Contracts of sale unless otherwise <strong>in</strong>dicated<br />
Jan-Sep Jan-Sep % change<br />
2022 <strong>2023</strong> year on year<br />
Nicosia 2,043 2,159 5.7<br />
Limassol 3,315 3,842 15.9<br />
Larnaca 1,734 2,348 35.4<br />
Famagusta 490 567 15.7<br />
Paphos 2,028 2,603 28.4<br />
All <strong>Cyprus</strong> 9,610 11,519 19.9<br />
Source: Department of Lands and Surveys. © Sapienta Economics Ltd.<br />
CYPRIOT AND NON-CYPRIOT PROPERTY SALES<br />
Jan-Sep Jan-Sep % change % of total <strong>in</strong><br />
2022 <strong>2023</strong> year on year Jan-Sep <strong>2023</strong><br />
Cypriot contracts 5,476 6,230 13.8 54.1<br />
EU contracts 1,859 1,476 -20.6 12.8<br />
Non-EU contracts 2,275 3,813 67.6 33.1<br />
Total contracts 9,610 11,519 19.9 100.0<br />
Source: Department of Lands and Surveys. © Sapienta Economics Ltd.