Cyprus’ real estate market remains robust, with transactions reaching €2 billion by mid-2024, despite ongoing global uncertainty, according to a report released on Monday by Delfi Partners & Company.
“Supported by strong domestic activity and stabilising inflation, the market continues to demonstrate adaptability while addressing broader challenges,” the company said.
Moreover, the company noted that data on building permits for the first half of 2024 recorded a significant 32.5 per cent year-on-year increase, “reflecting robust development momentum”.
However, the report pointed out that forecasts for the rest of 2024 indicate a possible downturn, largely due to municipal reforms that led to significant delays in the approval of building permits.
“Real estate sales also showed resilience,” the company mentioned, with sales to domestic buyers increasing by 13 per cent from January to September 2024 compared to the same period in 2023.
The increase in local activity helped counterbalance a 13.4 per cent drop in sales to international buyers, primarily due to global economic uncertainty and regional geopolitical tensions.
“Nonetheless”, the report continued, “international buyers still accounted for 44 per cent of total real estate sales in Cyprus, reaffirming the country’s enduring appeal as an investment destination”.
“We are observing a market shift where domestic buyers are taking on a more prominent role, while international interest, though reduced, remains noteworthy,” said Michalis Loizou of Delfi Partners & Company.
“This shift highlights the adaptability of Cyprus’ real estate sector, which continues to offer opportunities even amidst global economic challenges,” he added.
What is more, the company mentioned that by mid-2024, the total value of transactions reached €2 billion, exceeding pre-pandemic levels, while the average transaction value rose to €340,790, surpassing 2019 figures for the first time.
Limassol continued to lead as the top district for real estate activity, accounting for 32 per cent of total sales, followed by Nicosia with 22 per cent and Larnaca with 21 per cent.
“In the months ahead, Cyprus’ economy is expected to continue recording substantial growth rates while inflation stabilizes,” the company said in its latest report.
“These factors, combined with anticipated interest rate reductions and the dynamic real estate sector, position Cyprus as an attractive destination for investors seeking security, stability, and growth in a competitive market,” the report concluded.
