The preferences of property buyers in Cyprus are gradually changing.
Despite the fact that Limassol still holds the title of leader among the cities of the island in terms of the total number of sales transactions, their volume is decreasing with each passing month.
From January to May 2024, for the first time in a long time, Limassol recorded a decline in the number of property sales. The main reason for this is a significant increase in the cost of housing for sale and rent. Incidentally, foreign investors, who account for the majority of transactions, have started to actively invest their money in more economically favourable cities.
According to Polis Kourousidis, head of the Association of Property Appraisers, buyers are increasingly investing in Larnaca and Nicosia. This is evidenced by data on the growth of residential and commercial property sales in these cities. In some cases, growth is as high as 40 per cent.
Kourousidis noted that in some cases the difference in property prices between Limassol and Larnaca can be as much as half. As an example, he cited the prices of three-bedroom apartments in similarly prestigious areas of these cities. If in Limassol you have to pay 600 thousand euros, in Larnaca a similar option can be bought for 350 thousand euros.
Kourousidis stressed that in May 2024, the overall decline in property sales across Cyprus reached 17%. At the same time, the worst indicators were recorded in Limassol, followed by Paphos. It is worth noting that in May last year there were 511 sales in Limassol, while this year there were only 350. Paphos, on the other hand, recorded a decline of around 10 per cent. Kourousidis said that while property sales are falling, the construction boom in Limassol is not abating. This is positive for the market as there are always vacant units available for interested buyers.
Construction activity in Limassol continues and this can be seen in the number of applications for building permits, of which there are quite a few. Property developers have a plan and continue to invest in land development. If for some reason demand does not increase dramatically, this will help to keep prices down and make them a little more affordable," Kourousidis is confident.
Rental prices in Limassol remain high.
However, compared to previous years, rents have fallen slightly. According to Kourousidis, this is due to a drop in demand and an increase in the number of offers on the market. At the same time, Limassol is one of the strongest corporate office rental markets compared to other cities.
Several large foreign companies rent offices and bring their employees with them. This creates a demand for apartments and as a result rental prices rise. It is worth noting that Limassol is heavily dependent on foreign demand, which is more concentrated in the eastern part of the city. However, Cypriots prefer to buy apartments in the western part of Limassol.