Doing Business in Cyprus (Saudi edition)

DOING BUSINESS C YPRUS
47
SAUDI ARABIA EDITION
C
yprus has long been a firm favourite for property buyers worldwide thanks to its
high quality of life, safe environment and Mediterranean climate. In addition, the
country’s EU membership, its thriving international business centre and strategic
position at the crossroads of three continents remain key pull-factors for residential
buyers, relocating companies and investors alike.
Property sales have bounced back post-pandemic and have remained strong in the
last year. In the second quarter of 2022 real estate sales in Cyprus rose year on year by a
robust 29.3%. This was slower than the 51.6% recorded in the first quarter and analysts
say this is likely related to the end of lending subsidies for first-time buyers. In terms of
absolute volume, the largest increase in sales was in Limassol, where sales rose by 293
to 1,130, marking a year-on-year increase of 35%. However, the fastest pace of growth
was in Paphos, where sales rose by 229 or 54.1% to 652.
Sales to Cypriots continue to dominate, accounting for 58.5% of the total in the
second quarter of 2022 and 58% on average in the first half of 2022. This was lower
than in 2020-21, when sales to Cypriots averaged 65%. However, the years 2021-22
were somewhat unusual given pandemic-related travel restrictions. In 2018-19 the
proportion of sales to Cypriots was 55%, therefore closer to the average in the first half
of 2022. Sales to Cypriots are driven both by the abovementioned subsidies but also
growth in population size. According to the latest Labour Force Survey the number of
private households rose year on year by 1.4% in the first quarter of 2022 to 347,650.
REAL ESTATE SALES BY REGION
Contracts of sale unless otherwise indicated
2021 Q2 2021 Q3 2021 Q4 2022 Q1 2022 Q2
Nicosia 690 632 856 673 705
% change year on year 118.4 4.8 37.8 4.2 2.2
Limassol 837 825 1,118 1,019 1,130
% change year on year 116.8 17.9 32.2 82.3 35.0
Larnaca 396 422 541 512 610
% change year on year 106.3 26.0 35.9 62.5 54.0
Famagusta 170 181 211 152 157
% change year on year 80.9 14.6 8.8 16.9 -7.6
Paphos 423 442 618 653 652
% change year on year 44.4 17.6 32.9 94.9 54.1
All Cyprus 2,516 2,502 3,344 3,009 3,254
% change year on year 96.4 15.2 32.5 51.6 29.3
Source: Department of Lands and Surveys. © Sapienta Economics Ltd.