Cyprus Property Prices Rival Dubai And New York
The cost of real estate in Cyprus has increased by 30% over the last three years, according to industry professionals interviewed by Phileleftheros. This is attributed to the rise in construction material and fuel costs. The cost of a residential property has increased from €1,800 per square meter in 2022 to €2,500 per square meter in early 2024, according to industry insiders. Apartment prices have also seen a significant surge, reaching €1,650 per square meter in 2023. Market insiders speaking to Phileleftheros attributed the rise in apartment prices not only to the general inflation affecting consumers but also to changes in the law regarding reduced VAT rates for the purchase or construction of a primary residence/apartment, which came into effect in November last year. They explained that the reduction in eligible floor space to 130 square meters and the linking of the 5% VAT benefit to the property’s value have increased the demand for apartments, pushing their prices even higher. They also argued that the first signs of increasing construction costs for houses and apartments became apparent in 2020 due to the COVID-19 pandemic and global supply chain issues. Since then, prices have continued to climb, and it is challenging to predict when and at what levels they will stabilise. According to data collected by Phileleftheros from the construction industry, in the first months of 2024, the average cost per square meter for mid-range houses reached €2,500, while the cost per square meter for apartments stood at €1,650. Prices in 2023 were as follows: Newly built houses cost €2,600 per square meter. Apartments cost €1,650 per square meter. In 2022, houses were sold for €1,800 to €2,000 per square meter, while apartments ranged from €1,100 to €1,300. Consequently, a buyer would pay €100,000 more for a house in 2024 than they would have paid for the same property in 2022. Specifically, in 2022, a 150-square-meter house would have cost a total of €270,000. Today, the same property would cost €375,000. The same is true for apartments; a 100-square-meter apartment that would have cost €110,000 two years ago would now cost €160,000. Of course, property prices also depend on their location.
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