From January to July 2024, 9210 properties were sold in Cyprus. As noted by StockWatch, despite the repeated increase in interest rates on loans and uncertainty in international markets, this is the best period in sales since a record 2008, when 10,152 transactions for the purchase/sale of Cypriot real estate were concluded.
Compared to the same period in 2023, sales increased by 1.8%, and in pre-pandemic 2019 by 42.7%.
According to the Land Department of the Republic of Cyprus, Limassol remains the leader in sales in 2024, where 2,953 properties have changed owners. The second line of the rating is occupied by Nicosia (2072 objects), and the third is Larnaca (1994). In Paphos, 1,780 houses, apartments, and offices were sold in seven months of this year, while only 411 objects were sold in the free territories of Famagusta.
However, the advantage of Limassol is becoming less obvious every month. Nicosia became the leader in sales growth in the real estate market for the first seven months of 2024 (+23.6% compared to the same period last year). Larnaca is in second place (+12.2%). In other cities, there is a decline in sales: in Limassol by 4.9%, in Paphos — by 13.7%, in St. Terr. Famagusta — by 4.6%.
What to expect shortly?
Economist Tasos Yasemidis explained to StockWatch that in 2022-2023, the growth in real estate sales was facilitated by interest from international companies that decided to move their offices and staff to Cyprus. Gradually, demand began to exceed supply. This has become especially noticeable in Limassol. Therefore, investors began to study offers in Nicosia and Larnaca.
According to Tasos Yasemidis, Cypriot developers could not meet the demand in the real estate market, not because they did not want to, but because of a significant increase in prices for building materials and delays in the process of issuing construction licenses.
— It seems that sales growth is declining this year, as a surge in demand has led to higher rents, queues [for admission] to private schools, and increased traffic jams, — explained the Cypriot economist.
The Central Bank of Cyprus recorded a slowdown in price growth in the first quarter of 2024. As the Central Bank noted in its report, the number of housing units for rent and sale in the Cypriot real estate market has increased recently. A particularly noticeable increase is observed in Limassol. Analysts at the Central Bank predict that an increase in housing supply, combined with a gradual reduction in construction costs, will contribute to a further slowdown in real estate price growth.