House Prices Fall In Cyprus — A Unique Situation In The EU In 2021

The Central Bank of Cyprus monitors the development of house prices in the country. In its quarterly reports, it takes into account the type of property and region and compares house prices with those of previous reporting periods.

Source: Central Bank of Cyprus

The Cyprus housing price index is also calculated by WiRE, an independent consultancy company that assesses the property markets in Cyprus and Greece. The company’s analysts noted a slight increase in apartment prices in Nicosia and Limassol from April to June 2021. But for the most part, house prices have either fallen or remained at the level of the first quarter of 2021.

Source: WiRE Index, Q2 2021

Examples of properties in Cyprus

Cyprus, Limassol

€695,000+

Apartments in a residential complex near the sea

78 m²

2

1

Cyprus, Limassol

€419,000 — €519,000

Apartments in a unique closed residential eco-project

96 m² — 127 m²

2—3

2—3

Cyprus, Limassol

€1,060,000+

Apartment in a luxury residence with guaranteed return

110 m² — 111 m²

1

1

Residential property values in Cyprus have fallen so much year-on-year for the first time since the first quarter of 2014. At that time, it was caused by the economic crisis in the country. In 2020 and 2021, prices were affected by the pandemic.

The consequences of the pandemic. 30% of homes in the country are sold to foreigners who want to holiday in Cyprus or rent out properties to tourists. But when the borders closed, potential buyers from countries outside the EU were unable to come to Cyprus and choose a property to buy. Some property deals were frozen due to financial difficulties for the buyers.

Elena Ruda,

Chief Development Officer at Immigrant Invest

Based on the dynamics of the property market in the region, the cost of housing in Cyprus is set to rise. This is why we recommend our clients to buy property now while there is still an opportunity to choose good properties at a lower cost. And then, when prices rise, the properties can be sold at a profit.

Construction in Cyprus continues at a pre-crisis pace. In the first five months of 2021 alone, the country issued 3,157 building permits — 30% more than in 2020.

Home sales are also on the rise: by July 2021, the property market was back to pre-crisis 2018 levels. The growth is mainly driven by home sales to Cypriots themselves: 71% of the country’s citizens and residents are satisfied with the quality of life and affordability of housing in the country. The government also provides incentives for the purchase of basic housing.

Demand from non-EU third-country nationals is falling. Between January and July 2021, foreigners bought 902 residential properties in Cyprus, down 15% on the same period in 2020.

Investors can also obtain a permanent residence permit by purchasing a home on the island. The property must be worth at least €300,000. Cypriot residents have the right to live, do business, and study in the country without restrictions. If you have lived in the country for five years, you can apply for citizenship and gain freedom of movement to 176 countries, including Schengen, the UK, Japan, Hong Kong, and Singapore.

Immigrant Invest helps you get a permanent residence in Cyprus by investment. If you want to buy a property and become a resident of an EU member state, seek advice from experts in investment programs.