Delfi Analytics: Real estate market showed signs of stability and resilience in H1

Cyprus’ real estate market showed signs of stability and resilience in the first half of 2024, with the average value of transactions gradually picking and heading to pre-pandemic levels.

According to an analysis by Delfi Analytics, the specialised analytics department of Delfi Partners & Company, a total of 7,553 new properties were sold in H1, which was 1.8% higher than the same period last year.

The analysts believe that this is further proof of the Cypriot real estate market’s stability following the pandemic, geopolitical unrest and increased financing costs.

Per district, Limassol leads the way with 32% of total transactions, followed by Nicosia, Larnaca and Paphos with 23%, 21% and 20% respectively. Free Famagusta didn’t really see much activity in this respect, making up for just 4% of the transactions.

Larnaca, meanwhile, has seen remarkable growth since 2022, revealing the district’s hidden added value, as opposed to the other district where there has been a bit of a market stagnation; especially in certain real estate market segments.

Domestic demand picks up

The data for the first half of 2024 show that demand by locals for real estate has been on the rise, despite inflationary pressures and interest rate hikes. While purchases by foreign buyers decreased 18.7% compared with the first half of last year, sales to Cypriots recorded a 13% increase. Though at 39% of total transactions, the contribution of foreign buyers is not to be overlooked. And despite the observed downward trend, the analysts said it is possible this could change in the immediate future.

Value of transactions almost at pre-pandemic levels

The resilience and positive picture of the local real estate market is further boosted by an increase in the value recorded. To elaborate, the total value of transactions up until April 2024 was €992m, with the average deal calculated at €247,888. Last year during the same period, the total value was €910m and average transaction worth €227,534. This, the analysts said, means the average value of transactions is slowly but gradually returning to pre-pandemic levels in 2019, when the value of transactions was €1.2b and average deal valued at €301,680.