Cyprus property market: Promising growth in 2024, despite slowdown

The Cyprus property market, despite a slowdown, demonstrated promising growth in 2024, following the remarkable success of 2023, one of the best years in the past 15, according to the Danos Group Property Market Overviews for the 2nd Semester of 2024.

Department of Lands and Surveys data show that sales in December 2024, as measured by the number of contracts deposited at Land Registry offices, fell by 1% compared to December 2023.

While sales in the coastal region of Paphos rose by 34% year-on-year in December, declines of 16% in both Nicosia and Famagusta, and smaller decreases of 2% and 1% in Limassol and Larnaca respectively, pushed the overall figure into negative territory.

Over the full year, property sales increased by 1% compared to 2023. Sales rose in Nicosia and Larnaca by 14% and 5%, respectively, but fell in Paphos (8%), Famagusta (5%), and Limassol (1%).

Overseas market: Paphos on the up, Limassol declines sharply

In the overseas market, total property sales in December 2024 fell by 5% compared to December 2023. While sales rose significantly in Paphos (47%) and slightly in Nicosia (2%), they declined sharply in Limassol (41%), Famagusta (7%), and Larnaca (4%). For the entire year, overseas sales dropped by 10%, with increases in Nicosia (19%), Famagusta (13%), and Larnaca (4%), but significant declines in Limassol (23%) and Paphos (14%).

Moderate growth ahead

Looking ahead, the Cyprus property market is expected to experience moderate growth over the next few years, Danos said, as high interest rates will be hindering local demand.

Continued foreign investment, spurred by regional geopolitical tensions and the Cyprus Residency Programme, will remain a significant driver, the report says. “However, the market will face challenges from rising construction costs and regulatory changes, impacting new developments and putting upward pressure on property prices,” it added.

At the same time, local buyers are increasingly challenged by high property prices and elevated mortgage rates, making home ownership more difficult.

Foreign investors still seeking a good deal

Conversely, Cyprus continues to attract foreign investors seeking promising returns. For developers, the high demand, particularly in Limassol, Paphos, and Larnaca, offers lucrative opportunities despite rising construction costs. Overall, the market conditions are likely to favour foreign investment and development, while local buyers will continue to face hurdles in achieving home ownership.