As 2024 began, the real estate market in Cyprus displayed mixed results, showing both a slowdown in activity compared to the previous quarter and robust growth compared to the same period last year, according to data from the Cyprus Real Estate Agents Registry Council (CREA).
Market Overview
During the first quarter of 2024, 4,543 real estate transactions were completed, totaling €955.8 million. This represents an 18.6% decrease in transaction volume and a 22.9% decrease in transaction value compared to the last quarter of 2023. Nevertheless, on a year-over-year basis, the number of transactions increased by 16.5%, and their total value rose by 8.7%.
Leading Cities in Market Activity
Nicosia remains the most active area with 1,245 transactions worth €198.4 million, followed by Limassol with 1,202 transactions totaling €323.8 million. Paphos, Larnaca, and Famagusta also demonstrated significant activity, albeit on a smaller scale.
Current Transaction Documents
The number of sale and purchase documents filed for storage in the first quarter of 2024 was 3,597, slightly less than the previous quarter (down 11.1%) but more than the year before (up 1%).
Key Market Influencers
The key factors impacting the Cyprus real estate market include:
- Inflationary pressures reducing purchasing power.
- High interest rates making property purchases less accessible due to the increased cost of borrowing.
- Geopolitical instability, particularly the ongoing conflict in Ukraine, impacting the investment climate.
Comments from CREA’s President
CREA’s president, Marinos Kineirou, highlighted the seriousness of the current situation and called for proactive measures from both the government and property owners to stabilize the market.
