Cyprus Real Estate Market Maintains Stability Amidst Global Challenges
In 2024, Cyprus's real estate sector demonstrated resilience, recording property transfers worth €4.3 billion across 19,155 transactions, alongside 15,797 sales contracts filed nationwide. This performance reflects a modest increase of 1.8% in property transfers and a 1.5% rise in sales contracts compared to the previous year, despite a slight 2.3% decrease in the total value of transfers.
Limassol led the market with 5,032 sales contracts and transfer values totaling €1.5 billion, although it trailed Nicosia in transfer volume. Nicosia showcased stability, recording the highest number of transfers at 5,395, valued at €950 million, marking increases of 5.2% in volume and 1.4% in value from 2023. Paphos also exhibited growth, with 3,727 transfers worth €983 million, reflecting significant increases of 12% in volume and 21.7% in value, despite a 7.9% decrease in sales contracts.
The market faced challenges, including reduced purchasing power, elevated lending rates, increased construction material costs due to regional geopolitical instability, and sustained high property prices. Looking ahead, similar difficulties are anticipated in 2025. However, potential reductions in bank lending rates could improve market conditions, benefiting both the real estate sector and the broader economy.
Additionally, between 2021 and 2024, over 35,000 properties were sold to foreign buyers, with Paphos leading at 10,647 properties, followed by Limassol with 8,829. This influx of foreign investment has contributed to rising property prices, intensifying the housing affordability crisis for local residents. The ongoing "golden visa" program, offering permanent residency to foreign investors, remains a topic of debate, with concerns about its impact on the local housing market and societal dynamics.
Overall, while Cyprus's real estate market remains robust, balancing foreign investment with local housing needs continues to be a critical issue for policymakers and stakeholders.
Market Cyprus - News Service
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