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Cypriot Real Estate Market: 2024 Year in Review

The Cypriot real estate market has managed to remain stable in 2024, despite numerous challenges that posed significant hurdles for the sector. As noted by the Cyprus Real Estate Agents Registration Council, factors such as reduced purchasing power, high lending rates, increased construction material costs, and geopolitical instability have collectively restrained the market. Yet, the market remains a strong contributor to the economic growth of Cyprus.


Cypriot Real Estate market review from Tsitsios and Associates LLC

What Are the Current Challenges?


The primary obstacles faced by the Cypriot real estate sector in 2024 include a decline in consumers' purchasing power and elevated lending rates. Geopolitical tensions have also driven up costs for construction materials, further straining the market. These issues have resulted in high property prices, making it difficult for potential homebuyers and investors alike.


How Has the Cypriot Real Estate Market Contributed to Economic Growth?


Despite these setbacks, the property market has played a vital role in bolstering Cyprus's economy. Data from the Department of Land and Surveys reveals 19,155 property transfers amounting to €4.3 billion. Sales documents filed reached 15,797, reflecting a 1.5 per cent increase from the previous year. Although the value of property transfers dropped by 2.3 per cent year-on-year, the sector still managed to achieve modest gains thanks to robust performance in various districts.


Which Regions Are Leading the Charge?


Nicosia, the capital of Cyprus, led with the highest number of property transfers at 5,395, while Limassol recorded the highest transaction value of €1.5 billion. Paphos showcased remarkable growth in property transfers, while Larnaca experienced a rise in sales document filings. Despite facing declines, Famagusta exhibited resilience with an increase in property transfers.


What Can Improve the Situation in 2025?


Council president Marinos Kineyirou hopes for favorable changes in 2025. If banks reduce lending rates, purchasing power for locals could see improvement, benefitting the Cypriot economy as a whole. This, coupled with maintaining property market stability, can strengthen the sector's status as a key economic player.


What Does This Mean for Investors and Expats?


For investors and prospective expatriates, the Cypriot real estate market's resilience despite challenges presents a compelling case for investment. As the country continues to work towards economic stability, opportunities for property ownership and residency in Cyprus may become increasingly attractive.


If you wish to explore property investment or Cyprus residency further, reach out to Tsitsios & Associates LLC at info@klztlaw.com for expert guidance tailored to individual needs and circumstances. Our team offers comprehensive legal services to navigate the complexities of Cyprus's real estate landscape.


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