On Monday 18th November property experts said that despite signs of the market stabilising, house prices in Cyprus remain quite high.
According to many analysts, increased demand, especially from foreign buyers, is putting the purchase of houses and apartments on the island out of reach for many locals and causing rental costs to rise.
In particular, the head of the Council for the Registration of Estate Agents, Marinos Kineiro, said that while the Cypriot market has shown resilience, unresolved structural problems could lead to further increases in property prices. The Land Department's latest data on property sales for the first nine months of 2024 painted a mixed picture, with transaction volumes and values down, but the number of sales documents up. Incidentally, growth in Nicosia and Larnaca helped to offset losses in Paphos and Limassol, while a modest 1% increase in sales was recorded in the empty neighbourhoods of Famagusta.
For his part, the head of the Association of Property Valuers, Polis Kourousides, warned that high demand, especially from foreign buyers, who now make up half the market, is likely to continue until 2025. He pointed to delays in issuing building permits as a critical factor contributing to rising housing costs.
Without an increase in supply in the Cypriot market, the housing crisis will not pass," Kourousides stressed, arguing that current government measures, such as the repair-to-rent scheme, are insufficient.
He also warned that geopolitical factors, including the conflict between Israel and Hamas, could further increase demand for Cypriot property from Israeli buyers with high purchasing power. Kourousides stressed that delays in obtaining permits are forcing developers to cut back on construction. Some are being forced to lay off staff as a result of frozen projects. He suggested public-private partnerships as a possible solution, mentioning that the government could allocate public land to developers to build affordable rental housing.
If building permits are delayed in 2025 and 2026, the influx of foreign buyers will absorb all new supply, leaving Cypriots stranded,' Kourousidis warned.