The Department of Lands and Surveys has published new data on the sales of residential properties in Cyprus to local and foreign buyers for April 2024.
According to official statistics, the preferences of foreign investors seem to be changing. Instead of the traditional destinations of Paphos and Limassol, their interest is increasingly being directed towards more affordable options in Larnaca and the free neighbourhoods of Famagusta.
In April, 1,366 residential units were sold in the island state. Of these: 855 (63%) transactions were by local buyers and 511 by foreign investors.
Domestic property sales
Domestic property sales in April 2024 increased by 34% compared to the same month in 2023. A total of 855 house purchase contracts were signed with local residents. At the same time, compared to the same month in 2023, the number of transactions increased in Nicosia (+48%), Larnaca (+36%), Limassol (+55%) and the free areas of Famagusta (+7%). A negative dynamic was observed in Paphos. The number of sales in this city fell by 26%.
It should be noted that the actual sales figures in this category include a certain number of "non-sale" agreements such as loan restructurings, repossessions and debt-for-asset swaps agreed between banks and defaulting borrowers as part of the banks' efforts to reduce their NPL portfolios. Unfortunately, the Department of Lands and Surveys does not publish these figures separately.
In the first four months of 2024, domestic sales increased by 20 per cent to 3,001 units, compared with 2,504 units in the same period of 2023. Meanwhile, with the exception of the empty neighbourhoods of Famagusta, all cities recorded an increase in residential sales.
Property sales to foreign investors
Transactions with foreign investors decreased by 8% compared to April 2023. An increase in sales was recorded in Nicosia (+18%), Larnaca (+56%) and the free areas of Famagusta (+50%). Negative dynamics were observed in Limassol (-46%) and Paphos (-6%). In April 2024, a total of 511 property purchase contracts were concluded with foreigners. In January-April 2024, property sales to foreigners decreased by 13% to 1,962 units compared to 2,262 units in the same period last year. Except for Limassol and Paphos, all districts recorded an increase in the volume of transactions.
Property sales to EU nationals
Property sales to EU nationals in April 2024 increased by 4% compared to the same month in 2023. Sales in Nicosia and Larnaca increased by 133% and 16% respectively, while sales in Paphos and Limassol decreased by 13% and 36% respectively. In the first four months of this year, 563 units were sold to EU citizens, 4% less than in the same period last year. Only Nicosia and the free areas of Famagusta recorded positive dynamics.
Sales to third-country nationals
Property sales to third-country nationals in April 2024 decreased by 12% compared to the same month in 2023. Looking at the details by city, the demand for residential properties in Limassol, Paphos and Nicosia decreased by 48%, 3% and 33% respectively. The interest of third country nationals in housing in Larnaca and the free areas of Famagusta increased by 55% and 90% respectively. Between January and April 2024, the number of transactions with non-EU nationals fell by 17% compared to the same period last year, reaching 1,399 units. At the same time, Limassol and Paphos were most affected.