The majority of transactions in luxury homes across Cyprus range between € 2 million and € 3 million, while one in two foreigners buys an apartment in Limassol. Real estate sales to foreign buyers increased by 106% in the first half of 2017, reaching 1.413 from 685 in the corresponding half of 2016.
According to the PwC report "Cyprus Real Estate Market", transactions for real estate worth over € 1,5 million in the first half of 2017 amounted to 121, marking an increase of 59% compared to the corresponding half of 2016 , which had risen to 76.
More specifically, real estate transactions of € 2- € 3 million had risen to 107 in 2016 compared to 58 in 2015, while only in the first half of 2017 they reached 89, recording an increase of 102% from the corresponding period last year. Transactions in residential properties € 1,5- € 2 million increased by 23%.
Limassol holds the first place in luxury properties (59% of total transactions for the first half of 2017), followed by Paphos (32%). Transactions in excess of € 1,5 million in free Famagusta (5%) and Larnaca (3,3%) were limited. In the first half of 2017, 81% of high-level home transactions in Limassol were for apartments, while the remaining 19% were for cottages. This trend seems to be a result of the fact that the government's naturalization and security programs require foreign buyers to invest in real estate of about this value.
According to PwC, the increase in luxury real estate transactions came largely from naturalization incentives and tax incentives, such as the reduction of property transfer fees and the abolition of real estate tax.
Commenting on the report, Konstantinos Konstantinou, Head of Consulting Services at PwC Cyprus, said that "the level of trust that seems to prevail today in the field of land development reflects the positive performance recorded by the Cypriot economy."
Source: Liberal