In the first half of 2024, Cyprus’s residential property market showcased impressive vitality, as a total of 6,732 residential property sales were recorded, culminating in a market value of approximately €1.75 billion. This trend underscores the strong interest and demand within the Cypriot real estate sector.
High-End Property Sales Stable
The high-end property market remained steady, with 1,982 transactions totaling €950 million, representing nearly 28% of total residential sales and over 55% of the market’s overall value.
Key Regions: Limassol and Nicosia at the Forefront
For Q2 2024, Limassol and Nicosia emerged as the most sought-after regions for homebuyers, accounting for 26% and 24% of property sales, respectively, followed by Larnaca (23%) and Pafos (17%).
- In Limassol, there were 885 residential transactions in Q2 2024, with a significant 53% in the high-end segment. Notably, demand for apartments priced above €200,000 soared, constituting 52% of the total sales in this category across Cyprus. Sales of houses priced above €500,000 represented 36% of national transactions during this period.
- Nicosia also gained traction, with 834 residential transactions recorded in Q2 2024, of which 19% were high-end properties. This reflects a cumulative transactional value of approximately €115 million for the first half of the year.
Insights on Market Stabilization
Recent market dynamics have been shaped by economic and geopolitical factors, resulting in a surge of relocations to safer EU regions, including Cyprus, over the past two years. Currently, the real estate market is stabilizing, with statistics aligning more closely with levels observed in 2021. The figures for Q2 2024 are slightly down from those in 2023, a trend anticipated as the market seeks equilibrium after a period of rapid growth.
Foreign Buyer Influence
Foreign buyers remain a significant force in the market, with 860 deals from EU citizens, representing 12% of all residential sales. Overall, 2,015 sales to international buyers accounted for 29% of transactions, predominantly in the Larnaca and Limassol regions. The Permanent Residency through investment program continues to attract non-EU investors, while EU nationals are drawn to Cyprus for its appealing lifestyle, sunny climate, and favorable cost of living.
Continued Demand Anticipated
Expectations for the second half of the year remain optimistic, with steady demand projected from both local and international buyers. This sustained interest is backed by Cyprus’s attractive lifestyle, business opportunities, safety, and competitive tax environment.
Key Takeaways
- Q2 2024 observed 3,512 property sales valued at approximately €920 million.
- High-end property transactions totaled 916, representing 26% of the deals for the quarter and valued at about €485 million (52% of the total market value).
- In Limassol, there were 885 transactions, with 53% falling into the high-end category, showcasing strong demand for apartments priced over €200,000 and houses exceeding €500,000.
- Since Q2 2023, the cumulative transaction value of residential properties reached approximately €2 billion, with around €1.5 billion attributed to the premium market, notably driven by substantial sales in the apartment sector.
In Pafos, 610 residential transactions were recorded in Q2 2024, with 22% of these in the high-end segment, while Nicosia experienced 834 transactions, 18% of which were high-end.
In Larnaca, 812 sales occurred, with 18% categorized as premium, highlighting the area’s growing appeal. Finally, in Famagusta, 212 property transactions were noted, with a moderate interest in the high-end market indicated by 10% of sales in this category.
In summary, the future of Cyprus’s residential real estate market looks bright, continuing to attract a diverse array of buyers and investors and solidifying its status as a premier destination within the EU. Stay tuned for more updates as we monitor this dynamic market!