Cyprus Macroeconomic Snapshot

Snapshot analysis of Cypriot macroeconomic indicators with the latest data available from various statistical agencies. The analysis focuses on real estate market and other indicators related to and affecting the industry.

• Cyprus’ overall economy in GVA has been growing steadily, however construction activities have never recovered since 2008.
• The national real estate market showed a strong recovery in 2022 from the pandemic containment measures in 2020-2021. Comparing the period January-October 2021 with the corresponding period of 2022, the total amount of transfers declared in the local Land Registry increased in Pafos to 83%, in Larnaca to 60% and in Limassol to 57%. However, in Nicosia the increase was significantly lower than other districts at 7%.
• Property ownership in Cyprus is high with around 70% living in owner-occupied homes, so approximately 30% rent. However, the ownership percentage in 2021 has decreased since 2007 to 4.3%.
• According to available statistics, 55% of rental properties in 2021 are being rented below their market price.
• Population growth outpaced housing growth in 2017, pointing to signs of deficiencies in supply.
• In 2021, approximately 71% of the population lives in under-occupied housing, which may exacerbate the problem of housing shortage.
• Since 2005, the population living in apartments has increased by 7.5%, rather than houses, indicating the trends of younger generations for less demanding space.
• Households having arrears on mortgages, rent or bills have fallen by 4.5% since 2005. However, compared to the EU, the number of households is almost double.