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PwC Cyprus presents its latest version regarding & nbsp; with the Cyprus Real Estate and Land Development Market, which contains information on the sector's transactions in 2021. & nbsp; Based on & nbsp; transactions seem to & nbsp; the industry & nbsp; shows signs of recovery, after the significant decline in activity observed in 2020, mainly as a result of the pandemic and & nbsp; of the termination of the Cyprus Investment Program, from November 1, 2020. & nbsp;
According to PwC analysis, the total value of transactions in 2021 amounted to € 3.8 billion, recording an annual increase of 26% (-14% compared to 2019). In total, the trading volume amounted to 19,100, recording an annual increase of 32%, while it even exceeded the transactions recorded in 2019 by 11%, a fact that is mainly attributed to the increased demand from the domestic market.
The provinces of Nicosia, Limassol and Larnaca recorded double-digit growth rates in real estate transaction values, compared to 2020, with Limassol accounting for 42% of the total value of transactions. Although the signs of recovery of the industry are evident in all provinces, however the value of transactions in 2021 shows a decrease, compared to 2019, with the exception of & nbsp; the & nbsp; Nicosia, which recorded an increase. This increase is mainly due to the fact that Nicosia is primarily a market driven by domestic demand, which was the main pillar that led to the recovery and growth of the sector in 2021.
The value of transactions in the housing sector amounted to € 2.4 billion (apartments € 1.3 billion and houses € 1.1 billion), recording an annual increase of 16% in terms of value of transactions and 23% in terms of volume of transactions, compared to 2020. Land transactions were the main pillar of growth in 2021, with the value of transactions reaching € 95th million, representing 44% of the total increase in the value of transactions in the sector.
As for & nbsp; In terms of trading volume, 7,300 plots of land were recorded in 2021, recording an annual increase of 43%.
Despite the termination of the Cyprus Investment Program, a total of & nbsp; 139 luxury real estate transactions & nbsp; with value & nbsp; more than € 1.5 million in 2021, recording a decrease of 21% compared to 2020. The total value of these transactions amounted to € 380 million, recording a decrease of 5% compared to 2020 levels , which proves that despite the & nbsp; decrease in the volume of transactions, the values of the properties sold were on average higher.
It is also interesting to note that one of the most resilient real estate sectors in 2021, seems to be residential value units & nbsp; € 100,000 – € 300,000. This is mainly due to the increased levels of demand from the domestic market, which is favored by the continuing environment of low interest rates and the dynamics of the rental market, which create opportunities for buy-to-let transactions. In total, the value of these transactions amounted to € 1.1 billion in 2021, recording an increase of 33% compared to 2020 and 15% increase compared to 2019.
Foreign trade buyers, recorded an increase of 24%. It is worth noting that on a monthly basis from August 2021 onwards, transactions from foreign buyers exceed even pre-pandemic levels, highlighting the dynamics of the Cypriot real estate market.
Regarding the construction sector, in 2021 there was a continuous increase in the cost of construction materials (11%), which was mainly driven by the increase in the price of metal products (23% annual increase) and wood products, chemicals and plastics (10%). % annual increase). Despite these increases, in the first 10 months of 2021 the volume of new building permits increased by 17%, while the value of these permits decreased by 8% compared to the corresponding period of 2020, which confirms that & nbsp; new developments & nbsp; is on a smaller scale on average.
In his statements, the Consulting Services Partner at PwC Cyprus, Mr. Konstantinos Konstantinou, stressed that “despite the effects of the pandemic and the termination of the Cyprus Investment Program from 1 November 2020, the real estate and land development sector & nbsp; has maintained its position as one of the fastest growing sectors in the Cypriot economy, driven mainly by the increase in domestic trade. ”
The publication is available online at www.pwc.com. cy/real-estate.