Foreign investors have not lost their appetite for Cypriot properties, nor are they discouraged by a rise in interest rates, as sales doubled in the third quarter of 2022, compared to last year, according to the Land Registry.
Talking to the AGM of the Cyprus Real Estate Agents Association (CREAA), Elikkos Elia, the Land Registry Senior Officer, confirmed that foreign investors are still the driving force of the property market.
“Real estate remains a safe investment even with reduced returns due to international developments, while the sector can offer opportunities even in the harshest of circumstances,” said Elia, who reported a 100% increase in deals involving foreigners.
“The rise in interest rates has left the real estate market unaffected as the latest statistics show a 36% increase in sales documents, compared to the same period last year and 26% compared to 2019”.
Elias noted that demand for property has been boosted by “large foreign IT companies relocating their headquarters to Cyprus, resulting in a sharp increase in demand for office and residential space, especially in Limassol.”
He added the demand for high-end property is also heightened.
Elia argued, “the data of the last two years, despite revealing a trend of uncertainty due to the pandemic and ongoing war in Ukraine, show that investments in the sector act as a counterweight and shield the Cypriot economy”.
He added that the pressure of international developments on the island’s real estate sector would depend on the duration of the war.
According to Land Registry data, the sales documents filed in the first eleven months of 2022 amount to 12074, up from 9063 last year, marking an increase of 33%.
It is the best eleven-month period since 2008 when sales reached 14,043 units.
