The Department of Lands and Surveys has published the latest data on residential property sales in Cyprus to local and foreign buyers for the month of August 2024.
According to official statistics, the real estate sector in Cyprus continues to recover strongly. A total of 1,135 residential units were sold in the island state. Of these: 650 transactions were made by local buyers and 657 by foreign investors. Of the 657 properties purchased by foreigners, 150 were bought by EU nationals and 335 by third-country nationals.
Domestic property sales
Domestic property sales in August 2024 increased by 2% compared to the same month in 2023. A total of 650 property sales contracts were signed with locals, compared to 639 a year earlier.
Looking at the Cypriot cities, Nicosia was the leader in terms of the number of contracts signed in August 2024 (189), followed by Limassol (183), Larnaca (140), Paphos (84) and the free areas of Famagusta (54). At the same time, compared to the same month in 2023, the number of transactions increased in all cities except Limassol (-7%), where a negative trend was recorded: Paphos (+4%), Larnaca (+4%), Nicosia (+4%) and the Free Neighbourhoods of Famagusta (+20%).
In turn, the total number of transactions with local buyers from January to August 2024 was 6,294 (+14%) against 5,498 for the same period in 2023. In Limassol, 2,101 units were sold in 8 months against 1,850 in the same period last year, in Nicosia - 1,941 units against 1,618, in Larnaca - 1,245 units against 1,075, in Paphos - 732 units against 658, in the free neighbourhoods of Famagusta - 275 units against 297.
It should be noted that the actual sales figures in this category include a certain number of 'non-sale' agreements such as loan restructurings, repossessions and debt-for-asset swaps agreed between banks and defaulting borrowers as part of the banks' efforts to reduce their NPL portfolios. Unfortunately, the Department of Lands and Surveys does not publish these figures separately.
Real estate sales to foreign investors
As for transactions with foreign investors, they decreased by 2% compared to August 2023. Negative dynamics were recorded in Larnaca (-25%) and Paphos (-11%), while positive dynamics were recorded in Nicosia (+31%), Limassol (+25%) and the free areas of Famagusta (+19%). A total of 485 property purchase contracts were concluded with foreigners, compared with 493 a year earlier.
Looking at the cities, Limassol (163) took first place in terms of the number of transactions concluded with foreigners in August. It is followed by Paphos (152), Larnaca (104), Nicosia (34) and the free areas of Famagusta (32).
The total number of sales contracts from January to August 2024 was 4,051. Of these: 1,284 transactions in Paphos, 1,198 in Limassol, 993 in Larnaca, 222 in the free neighbourhoods of Famagusta and 354 in Nicosia. In the first 8 months of 2024, the number of transactions with foreigners fell by 14%.
Property sales to EU nationals
Property sales to EU nationals in August 2024 fell by 1% compared with the same period in 2023. The total number of sales contracts was 150, compared to 152 a year earlier. Of these:
- 17 transactions took place in Nicosia,
- 12 in the free areas of Famagusta,
- 27 in Larnaca,
- 39 in Limassol,
- 55 in Paphos.
Between January and August 2024, sales to EU citizens decreased by 6%. The total number of transactions was 1,218. Meanwhile, residential sales increased in all areas of the country except Larnaca (-23 per cent) and the free areas of Famagusta (-8 per cent), where 260 and 98 transactions respectively were concluded. Between January and August 2024, 296 sales transactions were registered in Limassol, 396 sales transactions in Paphos and 168 sales transactions in Nicosia.
Sales to third country nationals
Property sales to non-EU nationals in August 2024 also fell by 2% compared with the same period in 2023. The total number of sales contracts was 335, compared with 341 a year earlier. Of these:
- 17 transactions were in Nicosia,
- 20 in the free areas of Famagusta,
- 77 in Larnaca,
- 124 in Limassol,
- 97 in Paphos.
Between January and August 2024, sales fell by 16 per cent. The total number of transactions was 2,833. Meanwhile, residential sales increased in Nicosia, Larnaca and the vacant areas of Famagusta, and decreased in Paphos and Limassol. Specifically, from January to August 2024, 186 sales transactions were registered in Nicosia, 902 sales transactions in Limassol, 733 sales transactions in Larnaca, 833 sales transactions in Paphos and 124 sales transactions in the free areas of Famagusta.
The drop in demand is probably due to the general economic instability in the world and a decline in the purchasing power of foreigners. Investors' interest is shifting to other countries that offer more attractive payment terms and prices, but at the same time do not offer such a high return on investment," commented Maxim Arte, broker of DOM Real Estate Agency in Limassol.
