The Cyprus property market has been growing for four years in a row. The past 2017 was no exception - over the past calendar year, both sales of all types of real estate in almost all regions of the country and housing prices grew significantly. This allows experts to make optimistic forecasts for 2018.
The year ended with December sales growth of 36%, and began with a significant increase in this indicator by another 64%. It is important to note the fact that almost a quarter of sales in Cyprus are carried out with the involvement of foreign capital. Investors from Russia, as usual, are among the leaders. The average growth in property sales to Cypriot citizens in December 2017 was 53%. Cypriots were most active in real estate registration in Nicosia and Famagusta, where the growth was 133% and 107%, respectively. During the same period, foreign investors showed an increased demand for real estate in Famagusta (+ 33%), Nicosia (+ 29%), Larnaca (+ 17%).
The beginning of the year was marked by continued growth in home sales in Cyprus. In January, the number of real estate purchase and sale transactions increased by 64% compared to the same indicator in 2017. In total, in January, the Land Registry Department recorded 695 contracts for the sale of both commercial and residential real estate, as well as land plots. It is important to note that this figure almost reached the record in January 2012, when the number of contracts was 697 pieces. Real estate sales in January 2018 grew in Famagusta by 129%, in Nicosia by 103%, in Paphos and Limassol by 71 and 70%, respectively.
Against the background of real estate sales growth, the rental housing segment also grew. Rentals in Cyprus have been growing steadily throughout the past year. On a quarterly basis, the rent increased by about 3% for apartments and apartments, and by 1% for houses and villas. The growing demand for housing in Cyprus is driving up property prices. The largest increase in the cost of housing was noted in Limassol, where housing added in price by 3.8% over the quarter. On average, the cost of vacation homes rose 1.9% for homes and 2.6% for apartments. The most stable prices remain in Larnaca, with the lowest level of demand for real estate.
