The surge in property sales recently announced by the Cypriot Ministry of the Interior is raising concerns about the future trajectory of the island nation's housing sector, particularly in the year 2025.
Local experts agree that the combination of increased demand, reduced supply and delays in bringing new projects to market could trigger further increases in real estate prices.
Recall that according to the latest data from the Land Department, cited by the Ministry of Interior, sales of new buildings in Cyprus continue to trend upwards. Thus, for the first nine months of 2024, sales increased by 19% compared to the same period last year. Moreover, investors' interest in apartments dominates over houses. From January to September 2024, 5,253 property sales contracts were signed in Cyprus. Of these: 4,335 were for apartments and 918 for houses.
The shift towards the purchase of apartments, which increased by almost % across the country, contrasts with the decrease in house sales by 9.2% compared to January-September 2023. This trend is particularly pronounced among young adults and couples, reflecting the difficulty in obtaining the large mortgages needed to purchase homes.
The geographical distribution of new purchases indicates that many citizens, especially in Nicosia, have benefited from housing subsidies under revised schemes aimed at revitalizing mountainous, remote and disadvantaged areas.
The head of the Association of Cyprus Property Valuers, Polis Kourousides, said that while the latest figures show an increase in demand for housing, they raise concerns in the sector.
He explained that the high sales volumes of the first nine months are expected to continue into next year without a corresponding increase in supply. He said that new properties are entering the market with significant delays due to the bureaucracy of local authorities, which are very slow in issuing licenses. Kourousidis warned that continued high demand is likely to lead to price increases due to supply constraints.
The head of the agency said that the ratio of property buyers between Cypriots and foreigners is almost equal. However, the former are actively investing in properties in Nicosia, while the latter prefer to buy homes in Larnaca, Paphos and Limassol.
Finally, Kourousidis noted that buyers have become more likely to buy apartments for their own residence rather than as an investment, especially in Nicosia. The most popular are two-bedroom apartments in the range of 220,000 euros to 230,000 euros.