In 2023, the Cyprus housing market grew and developed steadily. Foreign investors were particularly interested in properties in the luxury real estate segment.
However, according to local experts, in 2024 the situation may change dramatically. Many agree that due to the increase in supply in the market and the decrease in foreign demand because of world events, prices for luxury housing will decline. Moreover, it will happen in the very near future.
So, the head of Ask Wire Pavlos Loizou, analyzing data on transactions from January 2021 to September 2023, said the change in consumer preferences. According to him, if previously the market was dominated by apartments worth less than 300 thousand euros, which accounted for about 80% of transactions, today the share of this segment has fallen to 60%. But the interest in housing options from 300 thousand euros to 500 thousand euros in Cyprus has increased significantly. In particular, the share of this segment in the market has almost doubled.
At the same time, Loizou noted that there is no doubt that in 2024 there will be a decline in interest, and accordingly, and prices, for real estate worth more than 500 thousand euros. In his opinion, this should be expected in the next six months.
In addition, the head of Ask Wire mentioned a possible slight drop in the value of mid-segment housing, around 3%. In conclusion, Loizou emphasized that the prices of expensive properties in Cyprus are likely to fall in 2024 due to an increase in supply in this category and a decrease in foreign demand.
Despite this, the Cypriot real estate market will continue its gradual recovery in 2024 after a period of economic hardship caused by world events in the early 2020s. Looking at the island's cities:
- Limassol will remain one of the most expensive and sought-after regions due to its strategic location, developed infrastructure, and attractiveness to investors.
- Paphos will attract buyers due to its unique combination of cultural heritage and modern amenities, as well as the affordability of housing compared to other resort towns.
- Larnaca, with its more affordable prices, will be a popular choice for those seeking a more relaxed lifestyle and at the same time looking to invest in real estate.