The real estate market in Cyprus in 2024 is undergoing notable changes driven by both internal economic dynamics and external factors. These shifts are impacting property prices, demand, investment flows, and overall market trends.
Market Overview
During the first nine months of 2024, the Cyprus property market showed stability, despite fluctuations in transaction volumes and property values. According to the Department of Lands and Surveys, 14,074 property transactions were registered between January and September 2024, reflecting a 6.3% increase compared to the same period in 2023.
Property Prices
Residential property prices continue to rise steadily. Data from the Central Bank of Cyprus indicates that the housing price index increased by 1.2% in the second quarter of 2024 compared to the previous quarter, and by 2.5% year-over-year.
Regional Variations
The Cyprus property market exhibits notable regional differences. Limassol remains the most expensive city, with the average apartment price reaching €246,919. In comparison, Nicosia averages €134,031, Larnaca €133,058, Paphos €122,846, and Famagusta €109,804.
Foreign Investments
Foreign buyers continue to show strong interest in Cypriot real estate. In 2023, foreign nationals purchased 4,351 properties across the country, representing a 5.7% increase compared to 2022.
Rental Market
Rental prices for properties in Cyprus are also experiencing significant growth. Over the past year, rental rates for apartments and houses have increased by 4% to 31%. Experts predict that rental prices will continue to climb in the coming months.
Impact of External Factors
Global events, such as the conflict in Ukraine, have influenced the Cypriot real estate market. The influx of refugees has substantially increased demand for rental properties, driving rental rates up by 30–40%. Many Ukrainian citizens, after settling in Cyprus, have started purchasing properties, with a preference for budget-friendly options.
Market Prospects
The real estate sector in Cyprus is expected to play a pivotal role in the country’s evolving economic model. The industry is undergoing transformation, with stakeholders recognizing the need to continuously adapt and redefine approaches to creating and delivering economic value.
Conclusion
In summary, the Cyprus property market in 2024 is characterized by steady growth fueled by internal and external drivers. Investors and buyers must closely monitor current trends and forecasts to make well-informed decisions. With its unique regional dynamics and growing foreign interest, the Cypriot real estate market remains an attractive destination for investment and development.
