Cyprus Real Estate 2024: Best Seven Months in Sales Since 2008

From January to July 2024, 9,210 real estate transactions were completed in Cyprus. According to StockWatch, despite multiple increases in loan interest rates and uncertainty in international markets, this is the best period in sales since the record year of 2008, when 10,152 transactions were made for Cypriot real estate.

Compared to the same period in 2023, sales increased by 1.8%, and compared to the pre-pandemic year of 2019, the increase is 42.7%.

According to the Department of Lands and Surveys of the Republic of Cyprus, Limassol remains the leader in sales for 2024, with 2,953 properties changing hands. The second position is held by Nicosia (2,072 properties), and the third by Larnaca (1,994). In Paphos, 1,780 homes, apartments, and offices were sold in the first seven months of the current year, and 411 properties were sold in the free areas of Famagusta.

However, Limassol's advantage is becoming less apparent each month. Nicosia was the leader in sales growth for the real estate market over the seven months of 2024 (+23.6% compared to the same period last year). Larnaca was second (+12.2%). In other cities, a decline in sales is observed: in Limassol by 4.9%, in Paphos by 13.7%, and in the free areas of Famagusta by 4.6%.

What to Expect in the Near Future?

Economist Tasos Yasemidis explained to StockWatch that in 2022-2023, the increase in real estate sales volumes was driven by interest from international companies that decided to relocate their offices and staff to Cyprus. Gradually, demand began to exceed supply. This was especially noticeable in Limassol. Therefore, investors started to explore options in Nicosia and Larnaca.

According to Tasos Yasemidis, Cypriot developers were unable to meet the demand in the real estate market not because they didn't want to, but due to significant increases in construction material prices and delays in the issuance of construction permits.

— It seems that this year, the growth rate of sales is slowing down because the surge in demand has led to higher rental prices, queues [for admission] to private schools, and increased traffic jams, — explained the Cypriot economist.

The Central Bank of Cyprus recorded a slowdown in price growth in the first quarter of 2024. According to the Central Bank's report, recently there has been an increase in the number of properties for rent and sale in the Cypriot real estate market. A noticeable increase is observed in Limassol. Central Bank analysts forecast that the increase in housing supply combined with a gradual decrease in construction costs will contribute to further slowing of price growth in the real estate sector.