Cyprus Property Market Report: Non-EU Residents Drive Strong Demand for Real Estate in December 2023

In December 2023, the total volume of property transactions reached 2,074, an all-time high in 2 years of observations. The number of registered transactions increased by 17% compared to November 2023 and by 10% year-on-year.

In December, the value of property transactions in Cyprus exceeded 446 million euros, setting a new record since January 2022. The gross sales value was 29% higher than in November 2023.

In December 2023, the number of non-EU buyers in Cyprus exceeded the number of EU buyers by 84%, with a total of 369 individuals. The overall number of foreign real estate buyers in Cyprus increased by 9.6% compared to November 2023.

2023 Highlights in the Cyprus Property Market

According to Tranio’s 2023 foreign property demand research, Russian demand in Cyprus surged by 35% in 2023 compared to 2021. The Cyprus recidency-for-investment programme and the Republic’s potential membership of the Schengen Agreement in 2024, attributed to this growth.

The demand for real estate is increasing, but the supply of new properties on the market is strictly limited. The number of building permits issued in 2023 decreased by 7.5%.

Amid the reduced construction activities, property values are rising in all coastal regions of Cyprus. According to the Central Bank of Cyprus, residential property prices surged by 14.9% in Limassol, 13.4% in Larnaca and 18.5% in Paphos.

Foreign demand for property in Cyprus is shifting towards non-EU buyers. While in 2022, the majority of transactions with foreigners were accounted for by EU citizens, in 2023, non-EU residents, such as citizens of Israel, the UK, and Russia, formed the majority.

The increased demand for property is driven by both Cypriot citizens, who purchase for residential or investment purposes, and foreign buyers, whose intention is to invest or relocate.