Cyprus Property Market On the Up

REAL ESTATE experts believe the Cyprus property market is on the up
The House Price Index (HPI) reached 103.98 units for the second quarter of the year, increasing by 0.6% compared to the first three months of 2018.
 The year-on-year increase of the index stands at 1.2% continuing the positive trend of the past few years, pleasing Real Estate specialists.
Property specialists are confident over the future of the sector, saying that the upward trend in house prices is combined with an ongoing increase in demand for real estate. According to data from the Land Registry, 4,500 homes were sold in the first half of the year, 27% more than the number of transactions filed with the registry for the same period in 2017. Experts expect the trend to continue throughout 2018 surpassing last year’s sales which reached an eight-year high with 8,734 transactions. In 2017 property sales on the island saw a staggering 132% growth from 2013 when sales had dropped to under half of what they were in 2010, the sector also grew by 24% from 2016.
 According to the preliminary results of research conducted by a group of real estate specialists, Limassol and foreign investors are still driving the market with 37% of transactions carried out in Cyprus’ second city, followed by Paphos with 23%, Nicosia with 18%, Larnaca 15% and lastly Famagusta with 7%. All districts have recorded a significant rise in transactions with even Larnaca, the only district with a negative growth index for 2017, recording a 15% rise in property sales.
 “The investment for citizenship scheme is still playing its role in market growth. Transactions involving foreign investors have more than doubled with Limassol and Paphos having the lion’s share with 70% of transactions involving foreigners,” a property specialist explained.
The specialist said that Paphos is leading the charts as far as the number of actual transactions involving foreign investors is concerned, with 39%. Optimism over the future of the real estate sector also stems from the rise in the number of building permits issued and the diversification of projects.
The specialist said that 3,100 permits were issued in the first half of 2018 compared to 2,900 in the same period last year. “We are not talking about only an increase in absolute number, but also of an increase in the value of projects for which licenses have been issued in the first six months of the year which amounts to €750 million. In the same period in 2017, projects obtaining licenses were worth €650 million,” he said.