Residential Real Estate - Cyprus | Statista Market Forecast

The Residential Real Estate market market in Cyprus is expected to reach a value of US$91.79bn by 2024.
It is projected to display an annual growth rate (CAGR 2024-2029) of 4.15%, leading to a market volume of US$112.50bn by 2029.
In terms of global comparison, China is forecasted to generate the highest value in the Real Estate market, reaching US$112.9tn in 2024.
Cyprus's residential real estate market is experiencing a surge in demand from international buyers due to its attractive tax incentives and strategic location.

Definition:

The residential real estate market covers the leases and transactions of residential properties. Residential real estate leases refer to the market where landlords and tenants enter into agreements for the rental of residential properties, such as apartments, houses, and condominiums, while residential real can be defined as buying, selling, or transfer of ownership of residential properties.

Structure:

The residential real estate market covers real estate transactions and leases, and the section, residential real estate leases, is 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 for real estate renters as well.

Residential real estate transactions
Residential real estate leases

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 Residential Real Estate market in Cyprus has been experiencing significant growth in recent years.

Customer preferences: One of the main reasons for this growth is the increasing demand from both local and international buyers. Cyprus has long been a popular destination for holiday homes, with its beautiful beaches, warm climate, and relaxed lifestyle. However, in recent years, there has been a shift in customer preferences towards more permanent residences. Many buyers are now looking to relocate to Cyprus on a full-time basis, attracted by the country's low tax rates, high standard of living, and excellent healthcare system.

Trends in the market: One of the key trends in the Cyprus Residential Real Estate market is the increasing popularity of luxury properties. High-net-worth individuals from around the world are investing in luxury villas and apartments in prime locations such as Limassol and Paphos. These properties offer not only stunning views and luxurious amenities but also the opportunity to obtain a Cyprus passport through the country's Citizenship by Investment program. Another trend in the market is the growing demand for eco-friendly and energy-efficient properties. Buyers are increasingly looking for properties that are built with sustainable materials and incorporate renewable energy sources such as solar panels. Developers in Cyprus have recognized this trend and are now offering a wide range of eco-friendly properties to meet the demand.

Local special circumstances: One of the unique aspects of the Cyprus Residential Real Estate market is the presence of a significant number of expatriates. Many foreign nationals, particularly from the UK and Russia, have chosen to make Cyprus their second home. This has created a diverse and multicultural community, which further contributes to the attractiveness of the market.

Underlying macroeconomic factors: Several macroeconomic factors have contributed to the growth of the Residential Real Estate market in Cyprus. The country's economy has been steadily recovering since the financial crisis of 2013, with GDP growth outperforming the Eurozone average in recent years. In addition, low interest rates and favorable mortgage conditions have made it easier for buyers to finance their property purchases. Furthermore, the government of Cyprus has implemented several initiatives to attract foreign investment in the real estate sector. These include the aforementioned Citizenship by Investment program, which offers a fast-track route to Cypriot citizenship for investors who meet certain criteria. The government has also introduced tax incentives for property buyers, such as reduced VAT rates and exemptions on property transfer fees. In conclusion, the Residential Real Estate market in Cyprus is experiencing significant growth due to increasing demand from both local and international buyers. Customer preferences are shifting towards more permanent residences, with a particular focus on luxury and eco-friendly properties. The presence of a large expatriate community and favorable macroeconomic factors are further contributing to the market's growth.

Data coverage:

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

Modeling approach:

Market size is determined by a combined top-down and 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 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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Residential Real Estate - Cyprus

Value

Volume

Analyst Opinion

Transaction Value

Revenue

Household Type

Real Estate Type

Living Space

Methodology

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