Cyprus Real Estate Market in 2024: A Shifting Landscape

The market of real estates in Cyprus has experienced notable changes in 2024, driven by increasing demand from both local and foreign investors, rising property prices, and economic shifts. As the island remains a popular destination for international buyers, recent trends show a particular interest in apartments over houses, reflecting broader changes in the economic environment and buyer behaviour.

Growing Demand for Apartments

Rising property costs have steered local buyers towards more affordable options, with apartments emerging as the preferred choice for many. The high prices associated with purchasing more significant properties, along with the challenges of securing financing, have caused buyers to reconsider their priorities. In the second quarter of 2024, a total of 489 apartment sales were recorded across the island, with the highest concentration in Nicosia and Limassol. The average price of apartments in Limassol stood at €246,919, significantly higher than other regions like Paphos and Larnaca​.

Coastal Regions and Foreign Investment

Foreign investors continue to see Cyprus as an attractive investment destination, particularly in coastal areas. Limassol remains the leading market for luxury properties, drawing international buyers seeking high-end developments. Demand for a house in Cyprus for sale is also vital in other regions like Larnaca and Paphos, where property prices have seen double-digit growth. The rise in foreign investments, partly fueled by the island’s favourable tax conditions and residency programs, has contributed to upward pressure on prices​.

Challenges for Local Buyers

For many locals looking to buy a house in Cyprus, affordability remains a pressing issue. High mortgage rates and inflation have reduced residents’ purchasing power, making it more difficult for them to enter the market. This has particularly affected demand for larger homes, as buyers opt for more budget-friendly apartment options instead. While demand for plots and residential fields remains strong, houses have seen fewer transactions due to these financial constraints.

Regional Highlights

Limassol continues to dominate the real estate market, with over 30% of total sales in Cyprus. In September 2024, property sales in Limassol increased by 3%, cementing its status as the leading region for both local and international buyers.

Larnaca, however, has shown the most impressive growth, with sales rising by 35% in the first nine months of the year​.

Paphos also saw an increase in property transfers, reflecting its appeal to both foreign buyers and those looking for vacation homes. In contrast, the Famagusta region struggled, with an 18% drop in property sales​.

Future Outlook

As the market continues to grow, Cyprus faces several challenges. Rising construction costs and economic uncertainties may temper future growth.

However, the ongoing demand from foreign investors, particularly in luxury segments, is expected to sustain the market’s momentum. For those exploring real estate opportunities, the evolving dynamics of the market present both opportunities and challenges​.

In conclusion, the Cyprus real estate market remains vibrant, with strong demand in key regions like Limassol and Larnaca. However, local buyers face increasing difficulties due to high costs, while foreign investment continues to drive the market forward.