According to analysis, by July 2023, Cyprus started to see fewer real estate sales contracts. In Q2, the total number of transactions amounted to £1.55 billion ($2 billion), while in Q1 2023 and Q4 2022, this figure was £1.72 billion ($2.23 billion).
The decline was caused by several factors: inflation, rising bank rates, and higher construction costs. Analysts note that, despite this, the market shows stability.
According to statistics, in Q2, there were 5,974 real estate transactions for a total of £1.55 billion ($2 billion). This is less than both the total number and the total amount of contracts in Q1 of this year.
Experts agree that the authorities of Northern Cyprus should provide support measures for the real estate sector, since it remains, along with tourism, the focal industry for the republic’s economy.
A noticeable increase in business activity in the real estate market was recorded only in Famagusta and Nicosia.
In Nicosia, there were 1,549 transactions worth £304 million ($393 million). Analysts note that in the same period of 2022, the number of contracts was higher, but their total amount was noticeably lower.
In Famagusta, 303 transactions for a total of £60.49 million ($78.23 million) were made in Q2 of this year. Both figures exceed the statistics for the same period in 2022.
Despite the decrease in the number of transactions, experts do not expect real estate prices to fall. On the contrary, thanks to promising new residential projects and improved infrastructure, Northern Cyprus will continue to attract buyers and investors.