Despite numerous challenges, mainly related to rising interest rates on loans, persistent inflation and turmoil caused by world events, the property market in Cyprus continues to perform well.
According to the latest report by Delfi Analytics, 7,553 residential sales transactions were completed in the island state between January and June 2024. Compared to the same period in 2023, the sales volume increased by 1.8 percent.
This was mainly due to the interest of local buyers. In particular, the number of Cypriot transactions increased by 13% in the period under review compared to the same period last year. The same cannot be said for demand from foreign investors. On the contrary, it fell by 18.7 percent. At the same time, foreigners are extremely important participants in the property market in Cyprus, accounting for 39% of total sales.
Looking at the different cities in Cyprus, from January to June 2024:
- 32% of transactions took place in Limassol;
- 23% in Nicosia;
- 21% in Larnaca;
- 20% - Paphos;
- 4% in the free neighbourhoods of Famagusta.
Regionally, Limassol continues to have a significant influence on the Cypriot property market. It is also worth noting that interest from Cypriots continues to grow, while foreign buyers appear to be more cautious. Nevertheless, factors such as political stability and an attractive legal framework are making Cyprus one of the fastest growing investment destinations in Europe. The revival of the real estate sector is largely driven by foreign capital. The rapid growth and influx of foreign capital has led to an increase in property prices, as well as a significant demand for luxury residences and Grade A offices, as many foreign companies have relocated their offices and staff to the island," says Delfi Analytics.
Finally, Delfi Analytics provides data on average property sales prices from January to April 2024.
In particular, the total value of transactions recorded up to April 2024 was €992 million, with an average price per transaction of €247,888, compared to a total value of €910 million and an average transaction price of €227,534 for the corresponding period last year. The average transaction value has gradually increased since the pandemic, and Delfi Analytics estimates that the market is gradually returning to the levels seen in 2019, when the total transaction value rose to €1.2 billion and the average transaction value to €301,680.