“It’s amazing, every year we say that there’s nowhere left to grow, but… the market continues to grow.”
Today, the company presents a new Insights report on the Cyprus residential property market for Q3 2024, which analyzes in detail the data from the Department of Lands and Surveys, and also values all transactions on the island.
The market showed mixed dynamics in Q3 2024. Despite a decrease in the overall volume of transactions and local corrections, the residential sector remains resilient due to a number of key trends.
Key points
Apartment sales exceed house transactions.
In all regions of Cyprus, the number of apartment transactions in Q3 2024 (2,200 transactions) is significantly higher than house transactions (1,100 transactions).
The total transaction volume since the beginning of 2024 has reached €3.1 billion.
14,074 property transfers were registered in the first nine months of 2024, demonstrating the resilience of the market amid global economic instability.
Reasons and factors influencing the dynamics
- Economic conditions, rising housing costs and quality of life.
Rising housing costs and rising interest rates have influenced buyer preferences. Young families and first-time buyers are increasingly choosing more affordable and sustainable options, such as apartments, over more expensive houses. New residential projects with modern infrastructure – swimming pools, fitness centers and green areas – are creating demand for apartments for those looking to improve their quality of life. In addition, new properties are popular with foreign investors due to the possibility of obtaining Cyprus permanent residence under the accelerated program.
- Government support.
Assistance programs from the Cypriot government stimulate the affordable housing market, especially for young couples and families with low or middle incomes. These initiatives include land allocation and financial support for the purchase of new apartments in rural and underdeveloped areas.
- Infrastructure development.
Key infrastructure projects such as the upgrading of the seafront, the reconstruction of Larnaca Port and major roads are making some regions more attractive for investment.
Key trends from the Q3 2024 report
Definition of the premium segment.
In this study, premium residential properties are defined as apartments priced from €200,000 and houses from €500,000.
Limassol as the leader of the premium segment.
Limassol demonstrates the highest demand for premium properties. It accounts for 50% of all premium apartment transactions (418 properties) and 34% of house transactions (53 properties) in the last quarter. Since Q3 2023, the total transaction value has been €1.5 billion, of which €1.2 billion was for apartments, the main premium product in the area.
Paphos is a competitive region for houses.
Paphos is the leader in demand for premium houses. The region accounts for 47% of all house transactions (72 properties) and 17% for apartments (127 properties). The total transaction value for the year (since Q3 2023) was €1 billion, of which €300 million was for houses, making them the key premium product in the region.
Average demand in Nicosia.
Nicosia shows moderate interest in premium properties: 16% of all transactions were for apartments (119 properties) and 3% for houses (5 properties). The total transaction value since Q3 2023 has reached €797 million, of which €263 million (33%) are in the premium segment. The main product is apartments, which accounted for €205 million.
Larnaca: demand for apartments exceeds demand for houses.
Larnaca has relatively low demand for premium properties, with 16% of transactions for apartments (123 properties) and 9% for houses (14 properties). The total transaction value for the year (since Q3 2023) was €763 million, of which €247 million (32%) are in the premium segment. Apartments lead the way with €190 million.
Famagusta: minimal demand for premium properties.
Famagusta shows the lowest demand: 6% of transactions for houses (10 properties) and 2% for apartments (18 properties). The total transaction value since Q3 2023 has reached €230 million, of which €70 million (30%) is in the premium segment. The main product is houses (€35 million).
In conclusion
Premium properties continue to be in the greatest demand in Limassol and Paphos. In Limassol, the main market is formed by apartments, and in Paphos – houses. Larnaca and Nicosia show moderate demand, while Famagusta remains the least popular region for investors.
These figures confirm the dynamic nature of the Cyprus property market, where demand for apartments continues to shape trends in 2024.
