Real Estate - Cyprus | Statista Market Forecast

Cyprus is a country with a promising future in the Real Estate market market.
In 2024, the value of this market is projected to reach a staggering US$118.50bn.
The Residential Real Estate segment dominates this market, with a projected market volume of US$91.79bn in the same year.
Looking ahead, the market is expected to experience steady growth with an annual growth rate (CAGR 2024-2029) of 3.57%.
This growth will result in a market volume of US$141.20bn by 2029.
It is worth noting that in global comparison, United States is expected to generate the highest Real Estate market value, reaching US$132.0tn in 2024.
Cyprus' real estate market is experiencing a surge in demand for luxury beachfront properties from international investors.

Definition:

The real estate market refers to the transaction of properties, including residential properties (such as houses and apartments) and commercial properties, such as office buildings and industrial properties. Apart from property sales, this market includes leases and the value of real estate.

Structure:

The real estate market comprises residential and commercial real estate. The residential real estate market covers real estate transactions and leases, and residential real estate leases are divided into apartment and house leases.

Additional information:

The market contains the following KPIs: real estate value aggregated for all countries and regions, average real estate value, real estate transaction revenue, number of real estate sold, number of leased and owned real estate, average room per resident, and dwelling type shares. The dwelling type shares comprise the share of the population that lives in houses and apartments. These shares are displayed for real estate owners and real estate renters as well.

Residential real estate (houses and apartments)
Commercial real estate (office buildings, retail spaces, warehouses, industrial properties)

Real estate agencies
Construction companies
Accommodation services, such as Airbnb
Commercial real estate leases and transactions
Publicly owned buildings used by the local government
Buildings used for public health care services

The Real Estate market in Cyprus has been experiencing significant growth in recent years, driven by various factors such as customer preferences, market trends, local special circumstances, and underlying macroeconomic factors. Customer preferences in the Real Estate market in Cyprus have been shifting towards properties that offer a high quality of life, such as luxury homes, beachfront properties, and modern apartments with amenities. This demand is driven by both local buyers and foreign investors who are attracted to Cyprus for its favorable climate, natural beauty, and relaxed lifestyle. Trends in the market indicate a growing interest in the development of luxury properties and high-end resorts, particularly in coastal areas. This trend is fueled by the increasing number of tourists visiting Cyprus and the demand for holiday homes and vacation rentals. Additionally, there has been a rise in demand for modern, energy-efficient properties that offer sustainable living options. Local special circumstances play a significant role in the development of the Real Estate market in Cyprus. The country's strategic location at the crossroads of Europe, Africa, and the Middle East makes it an attractive investment destination for both European and international buyers. Furthermore, the Cyprus government has implemented various incentives and schemes to attract foreign investors, such as the Citizenship by Investment program, which offers citizenship to individuals who invest a certain amount in the country's real estate market. Underlying macroeconomic factors also contribute to the growth of the Real Estate market in Cyprus. The country's strong economic performance, stable political environment, and favorable tax regime make it an attractive destination for investment. Additionally, low interest rates and relaxed lending criteria have made it easier for buyers to access financing, further stimulating demand in the market. In conclusion, the Real Estate market in Cyprus is experiencing significant growth due to customer preferences for high-quality properties, market trends towards luxury and sustainable developments, local special circumstances such as the country's strategic location and government incentives, and underlying macroeconomic factors such as a strong economy and favorable financing conditions. These factors combined make Cyprus an attractive destination for both local and international buyers looking for real estate opportunities.

Data coverage:

Figures are based on value of residential and commercial real estate, average real estate value, residential estate transactions and leases.

Modeling approach / Market size:

Market sizes are determined by a combined Top-Down and Bottom-Up approach, based on a specific rationale for each market segment. As a basis for evaluating markets, we use data from international organizations and industry associations. Next we use relevant key market indicators and data from country-specific associations such as GDP, price level index, household wealth, household size, number of renter and owner households, housing consumer spending per capita. This data helps us to estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the particular market. For example, 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:

The market is updated twice per year in case market dynamics change. The impacts of the Russia-Ukraine war are considered at a country-specific level.

This report presents a comprehensive analysis and additional information on the Financial market, in a PDF format.

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Real Estate - Cyprus

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Value Split

Volume

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Transaction Value

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