Despite all the turmoil, the property market in Cyprus has not only managed to stay afloat in 2024, but has also performed excellently.
According to the Land Department, the volume of residential sales in the island state is growing steadily. At the same time, buyers are increasingly opting for apartments.
From January to September 2024, the total number of sales transactions rose to a record 5,253, of which 4,335 were for apartments (an increase of 27%). Interestingly, the majority of buyers were young families who preferred to buy flats rather than houses due to high property prices and limited finances. As a result, sales of houses fell by 9.2% over the period.
The strongest growth in sales was recorded in regions that have not traditionally seen strong demand from foreign investors. These include mountainous and remote areas of the island. Recall that the Cypriot government recently extended the programme to support housing construction in these areas. As it turns out, the government scheme is very popular among the islanders. By the way, more than 1.5 thousand people have participated in the programme so far, and the amount of grants has already exceeded 56 million euros. The Ministry of the Interior emphasised the importance of the programme, which helps young couples in particular to find a home. The initiative also helps to prevent rural depopulation.
The agency has also recently proposed new measures to increase the stock of affordable housing. These include the allocation of land for low and middle-income families, support for young couples up to the age of 41 and the improvement of housing projects in mountain and rural areas. Finally, the authorities plan to introduce two new schemes (Repair-to-Rent and Build to Rent) in the coming months to increase the supply of affordable housing for both renters and buyers.