Just a few weeks ago, while receiving awards at The International Property Awards, Anastasia Yianni, CEO of Cyprus Sotheby’s International Realty, was asked, “What’s happening in the Cyprus real estate market right now?” Her response was: “It’s incredible. Every year we say there’s no more room for growth, yet the market continues to grow.”

Here are the latest Insights report on the Cyprus residential real estate market for Q3 2024. In this report, we’ve thoroughly analyzed data from the Department of Lands and Surveys and evaluated all property transactions across the island in monetary terms.

Mixed Trends in Q3 2024

Despite a decline in total transaction volume and localized market corrections, the residential sector remains resilient, thanks to several key trends.

Key Highlights:

Apartment Sales Outperform Houses:
Across all regions of Cyprus, in Q3 2024 apartment transactions (2,200) significantly outnumber house transactions (1,100).

Total Transaction Value Reaches €3.1 Billion:
From January to September 2024, 14,074 property transfers were recorded, showcasing the market’s stability despite global economic uncertainties.

Drivers and Influencing Factors

1. Economic Conditions and Quality of Life Improvements:
Rising housing costs and higher loan interest rates have shifted buyer preferences. Young families and first-time buyers are increasingly choosing more affordable, sustainable options like apartments over pricier houses. Additionally, new residential developments offering modern amenities—pools, gyms, and green spaces—are driving demand among those seeking a better quality of life. New properties also attract foreign investors due to the opportunity to obtain Cypriot permanent residency through an accelerated program.

2. Government Support:
Government assistance programs in Cyprus stimulate the affordable housing market, particularly for young couples and families with low to medium incomes. These initiatives include land allocation and financial aid for purchasing new apartments in rural and less developed areas.

3. Infrastructure Development:
Key infrastructure projects are enhancing the attractiveness of regions like Larnaca. Major developments, such as the modernization of the seafront, the reconstruction of Larnaca Port, and improvements to main roads, have boosted the region’s appeal to investors and buyers alike.

Key Findings from Cyprus Sotheby’s International Realty Q3 2024 Report

Premium Segment Definition:
In this study, premium residential properties are defined as apartments priced at €200,000 or more and houses priced at €500,000 or more.

Regional Highlights:

1. Limassol Leads the Premium Market:
Limassol shows the highest demand for premium properties, accounting for 50% of all premium apartment transactions (418 units) and 34% of premium house transactions (53 units) in Cyprus during the last quarter. Since Q3 2023, total transaction value has reached €1.5 billion, with €1.2 billion attributed to apartments, the dominant premium product in the region.

2. Pafos: Competitive for Premium Houses:
Pafos holds a strong position in the premium house segment, representing 47% of all house transactions (72 units) and 17% of apartment transactions (127 units). Since Q3 2023, total transaction value reached €1 billion, with €300 million allocated to houses, making them the key premium product in this region.

3. Nicosia: Moderate Demand for Premium Properties:
Nicosia demonstrates average demand, accounting for 16% of all apartment transactions (119 units) and only 3% of house transactions (5 units). Since Q3 2023, the total transaction value reached €797 million, with €263 million (33%) in the premium segment. Apartments dominate the premium market here, with €205 million in transactions.

4. Larnaca: Apartments Outpace Houses:
Larnaca exhibits relatively lower demand for premium properties, with 16% of all apartment transactions (123 units) and 9% of house transactions (14 units). Since Q3 2023, the total transaction value reached €763 million, with €247 million (32%) in the premium segment. Apartments lead the way, generating €190 million in transaction value.

5. Famagusta: Minimal Demand for Premium Properties:
Famagusta remains the least active region for premium real estate, accounting for only 6% of house transactions (10 units) and 2% of apartment transactions (18 units). Since Q3 2023, the total transaction value reached €230 million, with €70 million (30%) in the premium segment. Houses dominate the region’s premium market, contributing €35 million in transactions.

Summary

Premium residential properties — houses priced from €500,000 and apartments from €200,000 — remain most sought after in Limassol and Pafos. In these regions, apartments primarily drive the premium market, while houses are the focus in Pafos. Larnaca and Nicosia show moderate demand, while Famagusta continues to be the least popular area for property purchases.

These trends highlight the dynamic nature of Cyprus’s real estate market, where apartments remain the driving force shaping the 2024 landscape.

Materials are provided by Cyprus Sotheby’s International Realty
*If you are going to use the data, please mention the source.