The property market in Cyprus remains robust, according to a report published on Monday 25th November by Delfi Partners & Company.
Indeed, the volume of sales transactions in the island nation reached €2 billion by mid-2014, despite ongoing global uncertainty.
Thanks to strong domestic economic activity and stabilising inflation, the market continues to demonstrate its adaptability in the face of wider challenges,' the company said.
In addition, Delfi Partners & Company noted that building permit data for the first half of 2024 shows a significant increase in the realisation of new projects (+32.5% year-on-year), 'reflecting the sustained development momentum' of the sector.
On the other hand, the report says that forecasts for the remainder of 2024 point to a possible downturn, largely due to municipal reforms that have led to significant delays in the issuance of building permits. Nevertheless, the overall number of sales offers hope for a positive outcome.
Property sales have also shown resilience. In the domestic market alone, transaction volumes increased by 13 per cent between January and September 2024 compared with the same period in 2023. The increase in local buyer activity helped to offset a 13.4 per cent decline in sales to foreign buyers, largely due to global economic uncertainty and regional geopolitical tensions. Nevertheless, foreign buyers accounted for 44 per cent of total property sales in Cyprus, confirming the country's continued attractiveness as an investment destination. We are witnessing a shift in the market where domestic buyers are beginning to play a more prominent role, while international interest, although reduced, is still noteworthy,' the company said.
Delfi Partners & Company mentioned that by mid-2024, the total value of transactions will reach €2 billion, surpassing pre-pandemic levels, while the average transaction value will increase to €340,790, surpassing 2019 figures for the first time.
Limassol continues to lead the property market with 32% of total sales, followed by Nicosia with 22% and Larnaca with 21%.
The Cypriot economy is expected to continue to grow strongly in the coming months and inflation is expected to stabilise. These factors, coupled with expected lower interest rates and a dynamic property sector, position Cyprus as an attractive destination for investors seeking security, stability and growth in a competitive market," the company concluded.