Cyprus real estate is a well-established sector within the economy of the island. Every year it sees stable growth in various categories such as building permits and purchase prices. Although this year has been tough due to the ongoing pandemic, Cyprus is still seeing positive figures.
In this article we shall provide you with some of the most important data and what it means for the real estate sector.
Cyprus Real Estate
According to the 11th edition of the KPMG Cyprus Real Estate Market Report, the Cyprus real estate sector employs 42,770 people. This means the sector employs more people than the Financial and Insurance and the manufacturing sectors combined. This figure also shows that employment in the Cyprus real estate sector has grown 4% since 2018.
Furthermore, the area within the Cypriot economy added €3.24 billion during 2019. Again, this is a higher figure than some of the sectors combined. As you can already tell, the real estate market is extremely strong in Cyprus.
Sales Activity in 2019 and 2020 H1
As Cyprus was under strict lockdown for 3 months due to the current pandemic, it affected sales activity. The island saw a significant decline in sales, from 18% to 53% across the districts. However, as the restrictions have now eased, we are seeing a positive forecast and regaining good sales activity.
Here are some of the figures regarding sales activity:
The Figures for Building Permits
During 2019 a total of 7,218 permits issued making it an increase of 13% on the previous year. This is a very positive factor in the Cyprus real estate sector and with this increase, Cyprus also saw the value of the permits increase. This increase is estimated at 81% in comparison to 2018. Most of the building permits that were issued were for residential developments however, hotel developments accounted for 17% of the permit value (with only 3% of the permits issued).
More figures below:
The Cyprus real estate sector is still showing positive forecasts even with the current pandemic. Although it might take some time to get back to its full potential, the market is still very much active. The categories we have discussed above prove this point and no doubt that they will continue to do so.