The Residential Real Estate Transactions market in Cyprus has been experiencing significant growth in recent years.
Customer preferences: One of the main factors driving the growth of the Residential Real Estate Transactions market in Cyprus is the increasing demand from both local and international buyers. Cyprus has long been a popular destination for retirees and second-home buyers, thanks to its pleasant climate, beautiful beaches, and low cost of living. In recent years, there has also been a growing interest from investors looking to take advantage of the country's favorable tax regime and attractive property prices.
Trends in the market: One of the key trends in the Residential Real Estate Transactions market in Cyprus is the rising popularity of luxury properties. High-net-worth individuals from around the world are increasingly drawn to Cyprus for its luxury real estate offerings, including high-end villas and apartments with stunning sea views. This trend is fueled by the country's efforts to attract foreign investment and promote Cyprus as a luxury destination. Another trend in the market is the increasing demand for properties in urban areas. Cyprus has seen a significant urbanization trend in recent years, with more people moving to cities for work and lifestyle reasons. This has led to a growing demand for residential properties in urban centers, such as Nicosia, Limassol, and Larnaca. Developers are responding to this demand by building modern, high-quality apartments and townhouses in these areas.
Local special circumstances: One of the unique aspects of the Residential Real Estate Transactions market in Cyprus is the presence of a large number of foreign buyers. Many international buyers are attracted to Cyprus due to its favorable tax regime, which includes no inheritance tax, no capital gains tax on the sale of property, and a low property transfer fee. Additionally, the government has implemented various incentives to attract foreign investment, such as the Citizenship by Investment program, which offers Cypriot citizenship to individuals who invest in real estate in the country.
Underlying macroeconomic factors: The growth of the Residential Real Estate Transactions market in Cyprus is also influenced by several underlying macroeconomic factors. The country has experienced a steady economic recovery since the financial crisis of 2013, with GDP growth rates consistently exceeding the Eurozone average. This has boosted consumer confidence and increased disposable income, leading to a greater ability and willingness to invest in real estate. Furthermore, low interest rates and favorable mortgage conditions have made it easier for individuals to finance property purchases. The Central Bank of Cyprus has implemented measures to stimulate lending and support the real estate sector, including the introduction of a mortgage interest rate subsidy scheme. These factors have contributed to the growth of the Residential Real Estate Transactions market in Cyprus. In conclusion, the Residential Real Estate Transactions market in Cyprus is experiencing significant growth due to increasing demand from both local and international buyers, a rising interest in luxury properties, and a growing demand for urban properties. The presence of foreign buyers, favorable tax incentives, and a strong macroeconomic environment further contribute to the market's development.
Data coverage:
Figures are based on total and average revenue of residential real estate transactions (sales).Modeling approach:
Market size is determined by a bottom-up approach. We use national statistics, international organizations, and industry associations to analyze the markets. To estimate the market size for each country individually, we use relevant key market indicators and data from country specific industry associations such as GDP, price level index, household wealth, household size, number of renter and owner households, housing consumer spending per capita.Forecasts:
We use a variety of forecasting techniques, depending on the behavior of the market, for instance, exponential trend smoothing. The main drivers are GDP per capita, population, number of renter and owner households, price level index, housing consumer spending per capita.Additional Notes:
Data is modeled using current exchange rates. The market is updated twice per year in case market dynamics change. The impacts of the Russia-Ukraine war considered at a country-specific level.
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