Cyprus Real Estate Market 2024: Sustaining Growth Despite Challenges

Despite ongoing economic challenges, Cyprus’ real estate market continues to maintain its stability in 2024, with key indicators remaining largely in line with the previous year. According to the Council for the Registration of Real Estate Agents, the sector remains a vital driver of the country’s economic growth.

A total of 19,155 property transfer transactions were recorded nationwide, with a combined value of €4.3 billion. Meanwhile, 15,797 sales contracts were submitted, reflecting a 1.5% increase compared to 2023, while property transfers rose by 1.8%. However, the total transaction value declined slightly by 2.3%.

Factors Influencing the Market

Several key factors have influenced the real estate market’s performance:

• High interest rates, affecting buyers’ access to financing.
• Rising construction costs due to geopolitical instability, limiting new supply.
• Weakened purchasing power, impacting overall demand.

Despite these challenges, property prices have remained high, reinforcing the market’s resilience in uncertain conditions.

Regional Performance

Limassol – The Market’s Powerhouse

Limassol continues to dominate the market with 5,032 submitted sales contracts, the highest in Cyprus. However, the city ranks second in total property transfers (5,054). It leads in total transaction value, reaching €1.5 billion. Compared to last year, sales contracts declined by 1.2%, while property transfers fell by 5.8% in volume and 6.3% in value.

Nicosia – A Stable and Strong Market

The capital, Nicosia, recorded the highest number of property transfers, with 5,395 transactions, showcasing the area’s long-term stability. The total number of sales contracts increased significantly by 13.6%, while transfers grew 5.8% in volume and 1.4% in value, reaching €950 million.

Paphos – Strong Growth Potential

Although sales contracts in Paphos declined by 7.9%, the number of property transfers rose by 12%, while their total value surged 21.7%, reaching €983 million. This indicates that Paphos remains an attractive and growing real estate destination.

Larnaca – Mixed Performance

Larnaca recorded 3,775 property transfers with a total transaction value of €637 million. While transfers declined by 1.7% in volume and 13% in value, the number of sales contracts increased by 5.4%, reflecting sustained interest from investors.

Famagusta – Stable Transactions but Declining Value

Famagusta reported 775 sales contracts, a 4.5% decline compared to 2023. Although property transfers increased by 3.8%, the total transaction value dropped by 19%, amounting to €214 million. This suggests a decrease in high-value transactions within the region.

Conclusion

Despite macroeconomic headwinds, Cyprus’ real estate sector has demonstrated resilience and adaptability. While regional variations exist, real estate remains one of the key economic drivers of the country. With consistent investor interest and market adjustments aligned with economic conditions, Cyprus continues to be an attractive destination for international property investment.