Philippos Soseilos: The real estate sector in Cyprus continues to play a key role in the country’s transition

“In a volatile and dynamic environment full of challenges and opportunities, the real estate sector in Cyprus continues to play a key role in the country’s transition to a new economic model. What is needed to meet the country’s immediate and future needs is reform-oriented and strategic thinking, within the framework of Vision 2035,” Philippos Soseilos, CEO of PwC Cyprus notes.

He was commenting as PwC Cyprus presented its annual report on the Cypriot real estate market, outlining the main developments and trends of the sector during 2024, through detailed analysis and the use of extensive databases as well as the firm’s sectoral expertise.

Resilience despite challenges

According to the report, despite ongoing global challenges, the real estate market in Cyprus demonstrated remarkable stability. In 2024, record-high transaction values were recorded, reaching €5.71 billion—marking a slight 1% increase compared to 2023. The total number of transactions amounted to 23,900, reflecting a marginal annual decline of 3%.

Nicosia stood out with a 4% increase in transaction volume, while coastal cities saw marginal declines. In terms of transaction value, Limassol remained dominant, accounting for 44% of the total, followed by Nicosia and Paphos.

Residential real estate leads the market, with strong activity in the commercial segment

Residential properties remained the market driver, accounting for €3.8 billion in transactions (67% of the total). However, there was a notable increase in the value of commercial real estate transactions, which offset decreases observed in other categories. Significant commercial activity was concentrated in the districts of Limassol and Nicosia, the report also noted.

Demand from foreign buyers

Foreign buyer demand decreased by 10% in 2024. However, areas such as Nicosia, Famagusta, and Larnaca recorded positive growth. While Paphos and Limassol saw a drop in foreign transactions, they still account for over 60% of all sales to foreign buyers, PwC's report revealed.

Luxury property market: steady presence

The findings also indicated that the luxury housing segment (properties valued above €1.5 million) showed a mild recovery, with 188 transactions totaling €500 million—representing 9% of the sector's total value. Limassol led with 74% of these transactions, followed by Paphos with 19%.

Development trends and construction costs

From January to November 2024, the number of new building permits declined by 2%, while their total value increased by 2%, indicating a shift toward higher-quality, higher-value projects. Limassol and Nicosia remained leaders in terms of permitted project area. Significant growth was recorded in non-residential developments (retail and office spaces), whereas tourism and leisure developments declined, possibly suggesting saturation or a shift in strategic focus, the report concluded.

To view the Cyprus Real Estate Market 2024 Report, click here.