Cyprus real estate 2020 year in review

Cyprus Real Estate Market 2020: A Year in Review

The year 2020 was a real test of robustness on all market categories worldwide. As a result of the COVID-19 pandemic, the economy is experiencing unique behaviour in general. This article is a review of the real estate market developments in Cyprus during 2020. All statistics and data are sourced from PwC’s Year in Review.


Cyprus displayed continuous economic growth in 2019 (+3,2%). However, the complications of 2020 resulted in a 6,4% drop in GDP. Ultimately, PwC predicts that the economy and GDP will swiftly grow to about 4,5% during 2021 and 2022. Future insights are heavily dependant on the outcome of COVID-19 vaccination plans.


In 2020, the Cypriot government introduced temporary mitigating measures to protect employees and employers. As a result, the unemployment rate only increased from 7,1% in 2019 to 8% in 2020. The actions taken helped to preserve the unemployment rate in the country as much as possible.


Subsequently, construction material prices dropped for the first time since 2016, deflating by 0.4% during 2020. Furthermore, due to their demand usually depending on foreigners, real estate transaction activities decreased from 2019 by 36% and 47% in Limassol and Paphos, respectively. These statistics display the direct effect of the economy on the real estate sector.


Overall, we saw a 32% drop in real estate transaction value. However, transaction activity rates fluctuated heavily during the year, depending on when strict lockdown measures were in place. This tight correlation shows promise for the resilient market in 2021 as vaccination plans roll out and pandemic measures ease with time.


The high-end residential properties segment is said to have been the most affected through 2020. Alongside the pandemic, the termination of the Cyprus Investment Programme (Golden Passport Scheme) has directly shaken up the luxury real-estate sector. With 318 high-end residential properties acquired in 2019, the mere 176 properties in 2020 represent a 45% drop. The end of the programme highlights the need to re-focus and transform this real estate segment for the future.



Overall, the global pandemic has stunted Cyprus’s national economic progress from the recent previous years. However, predictions state that unemployment rates, residential transaction rates, and GDP rates will rise back up with Cyprus’s newfound strength since enduring the economic crisis in 2013. In short, there may have been a lot of uncertainties throughout 2020, but the market is more ready than ever to act on solutions and get back on track.

Use Estate Searcher to find the latest available properties in Cyprus or list your own.

Leave a Comment

Your email address will not be published.