Property prices in some areas of Cyprus are comparable to Dubai and New York

Over the past three years, property prices in Cyprus have jumped by a record 30%. This was stated by local experts in the field of the real estate.

In their opinion, the cost of housing in some areas of Cyprus is comparable to Dubai and New York.

This trend, first of all, is a consequence of rising prices for construction materials. In addition, not the least role played by changes in the legislation regarding the calculation of a preferential rate of VAT on new housing. Due to the limitation in the meter size, to which the 5% rate is applied, many buyers switched their interest to apartments. This led to their rise in price.

That said, the first signs of rising house and apartment construction costs started to show back in 2020 due to the coronavirus pandemic and supply chain issues around the world. Since then, the rise has continued and no one can estimate when or at what level it will stop.

According to some data, in the first months of 2024, the average cost per square meter of average quality homes reached 2.5 thousand euros. In turn, the cost per square meter in apartments now starts from 1.65 thousand euros. At the same time, in 2022, houses were sold in the range from 1.8 thousand euros to 2 thousand euros per square meter, and apartments - from 1.1 thousand euros to 1.3 thousand euros.

Thus, a buyer will pay 100 thousand euros more for a house this year than he would have paid in 2022 for the same house. In particular, in 2022, a 150 m2 residence had a total cost of 270 thousand euros. Today, if someone buys the same residence, he will pay 375 thousand euros. The same goes for apartments: if someone two years ago bought a 100 m2 apartment, he would pay 110 thousand euros, but today he will pay 160 thousand euros. It should be taken into account that real estate prices also depend on the area in which it is located.

According to the research and analysis of the Statistical Service of Cyprus, in previous years, the cost of building structures per 1 m2 was as follows:

1. In 2021, the sale price of a house was €1,118 per 1 m2 and that of an apartment was €1,043 per 1 m2.
2. In 2020, houses sold at an average price of €1,059 per 1 m2 and apartments at €992 per 1 m2.
3. In 2019, house prices fluctuated at the same level as last year, while apartments were priced at €940 per 1 m2.
4. In 2018, houses were sold at €1,033 per 1 m2, while apartments were sold at €980 per 1 m2.
5. In 2017, the average price per 1 m2 in houses was €1,086 and apartments €869.
6. In 2016, the average average price per 1 m2 in houses was €1,019 and in apartments €910.
7. In 2015, the average price per 1 m2 in houses was 1,009 euros and in apartments - 910 euros.