Real Estate Price Evolution 2010 – 2018 (QIII).

Real Estate Price Evolution 2010 – 2018.

How can a potential foreign investor assess market movement perspectives within the horizon of their investment? One of the basic options is to analyse the dynamics of price changes in previous periods. Let's take a closer look at the Cyprus real estate market movement in recent years.

The new version of the Cyprus Investment Program requires potential investors to keep their investments for a minimum period of 5 years. So, how can an interested foreign investor assess the prospects for the market movement in this period? One of the first and easiest options for analysis is to study the dynamics of changes in prices for residential real estate in previous periods.

Let us check the report on the real Estate Market in Cyprus, prepared by PwC in November 2018 (Source - https://www.pwc.com.cy/en/industries/real-estate/cyprus-real-estate-market-year-in-review-2018.html).

The behaviour of residential property prices across Cyprus could be captured by two indices: 

  • Central Bank of Cyprus (CBC) index
  • Royal Institution of Chartered Surveyors Cyprus (RICS) index.                                                                                 

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In 2017, for the frist time during the 8-year period 2010-2017, bothprice indices behaved positively.

A further growth in residential property prices was recorded during 2018, with the CBC index demonstrating a YoY growth of 2% (Q3 2018) and the RICS Residential index recording a 7% YoY growth.

PwC experts emphasize that since 2010, both indexes have shown negative dynamics, reflecting the trend of decreasing demand for residential real estate, including from foreign buyers. This negative trajectory continued until 2015, which led to an overall drop in residential property prices by 26-33% compared to 2010 values.

In 2016, price indices showed signs of slight improvement and stabilization. It can be assumed that this was caused by the beginning of the "Cyprus Investment Program". In 2017, for the first time in the 8-years from 2010 to 2017, both price indices behaved positively. During the first three quarters of 2018, the CBC index showed an increase of 2% compared to the same indicators in 2017, while the RICS Residential index in 2018 showed a record growth of 7% compared to the results of the previous period.

A successful investor should consider their exit strategy before making an investment. The above data reflecting the dynamics of the Cyprus real estate market can be used for such a preliminary assessment.

For more information please write to Mr.Ikramov Armondzhon on e-mail: armondzhon@americanoslaw.com, or call

Tel.+ 357 22 46 55 00 (English, Greek)
Tel.+ 357 97 77 99 15 (Russian, English)

Tags citizenship real estate investments Cyprus
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