Cyprus derives its economic strength from its tourism sector, which is closely linked to the real estate sector. People from all over the world come to Cyprus with the aim of relocating and settling down, leading the country to witness a growing number of new construction projects that have benefited the real estate sector in achieving steady and stable growth. In this article, you will learn about the evolution of the real estate sector in Cyprus.
The growth of the real estate market in Cyprus
Analysts reveal that the real estate market in Cyprus has achieved a high annual growth rate of 3.5% until the year 2022, and this prosperity has had positive implications and outcomes for the Cypriot economy, The International Monetary Fund (IMF) expects the Cypriot economy to grow by 3% by the end of this year. However, the Ministry of Finance holds a more optimistic view, anticipating growth of 4.5% to 5%.
Increase in demand since 2000
Going back in time, the real estate sector in Cyprus experienced consecutive surges in the mid-2000s, driven by an increase in demand from foreign investors, This led to a 22.06% increase in home prices in 2007. However, with the global financial crisis, prices dropped by 30% in the years following the crisis until 2016, according to data from the Central Bank of Cyprus.
The housing market in Cyprus began to stabilize in the first quarter of 2017 amid economic improvements. Property prices across the country increased at an average rate of 2.2% annually from 2017 to 2019.
During this period, the government implemented various initiatives to revive and strengthen the real estate sector, including the development of residential and commercial projects, new businesses, and modern infrastructure, These measures have yielded significant results and contributed to paving the way for a stable and thriving economic system.
The prominence of Cyprus in Europe
In recent years, Cyprus has emerged on the European real estate scene like never before, experiencing unprecedented growth, This growth can be attributed to numerous infrastructure development projects and property developments that have revitalized Cyprus’s economy and real estate market, leading to a rapid resurgence in residential construction activity.
According to the Land and Surveys Department in Cyprus for the first five months of 2021, total property sales in Cyprus surged significantly by 36.2% on a yearly basis, reaching 3,577 units, The city of Limassol recorded the highest percentage among other Cypriot cities, With approximately 450 property transactions amounting to around 126 million euros. These promising figures indicate a bright future for the real estate market in Cyprus, offering you a favorable environment filled with diverse investment opportunities that can be the starting point for achieving your goals, whatever they may be.
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