The preferred apartment type and value in a record-breaking housing market

Housing sales activity reached record levels in 2023, with apartments attracting the majority of buyers.

According to Deloitte's report on the real estate sector in Cyprus, a record was set both in terms of value (€3.4 billion) and transaction volume (13,200 transactions) for residential properties, with annual increases and in both cases exceeding 4%.

The average residential property transaction value for 2023 was €259,000, moving slightly higher than €257,000 in 2022.

However, the average transaction price of 2023 was lower compared to the peak of €271,000 recorded in 2019.

Limassol takes the biggest piece of the pie

Limassol captured 43% of the total activity in residential real estate by value, recording sales of €1.5 billion for a total of 3,700 transactions. The Paphos housing market was the second most active with transactions worth €0.7 billion for 2,800 transactions.

New residential properties, for which title deeds have not yet been issued, represented 69% of the total value of transactions in the housing market. 45% of newly built properties are located in Limassol, with Paphos (21%) and Larnaca (15%) following.

Nicosia recorded for 2023 a total of 2,800 transactions amounting to €0.5 billion, occupying 15% of the housing market activity.

The average transaction value was €184,000, less than half of the €395,000 in Limassol and 28% lower than the €256,000 in Paphos.

Buyers most interested in apartments

Apartments accounted for 62% of total market value in the housing market in 2023 and 72% of total transactions in the category. The ratio between apartments and houses, both in terms of value and volume, moved at similar levels to 2022 and 2021.

Most apartment sales were of two-bedroom properties, while one-bedroom studios/apartments fell to second place.

The majority of houses sold during 2023 were smaller than 200 sq.m.

Most apartments and houses valued at under €250,000

It is also noted that most fapartments sold in 2023 (77%) were properties sold for less than €250,000, which also seems to correlate with the most popular apartment sizes, which are either one- or two-bedroom, while 17% of apartment sales were for properties priced between €250,000 and €500,000.

It is also observed that while the number of transactions for apartments increased from 8,900 in 2022 to 9,500 in 2023, the increase was mainly due to transactions involving more expensive properties, with sales values ​​between €250,000 and €1 million.

Furthermore, 46% of homes sold in 2023 were also properties sold for less than €250,000, 39% were properties between €250,000 and €500,000, 11% were properties sold for between €500,000 and €1 million, while only 4% concerned sales of houses over €1 million.

A similar trend is also seen concerning apartment sales, where the price mix shifted in favour of more expensive properties in 2023 compared to 2022.

(Source: InBusinessNews)