Cyprus Property Market in 2024: Record Sales Amid Mixed Trends
Cyprus Property Market in 2024 – The Cypriot property market achieved a milestone in 2024, recording the highest number of sales since 2007. A total of 15,797 property sale contracts were filed with the Department of Lands and Surveys, reflecting a robust recovery. However, while domestic sales showed some resilience, the overseas market saw a notable decline. The outlook for 2025 remains uncertain.
December 2024 Property Sales Overview
In December 2024, property sales declined by 1% compared to December 2023, based on data from the Department of Lands and Surveys. Although Paphos experienced a 34% surge in sales, declines in Nicosia (16%), Famagusta (16%), Limassol (2%), and Larnaca (1%) offset these gains, resulting in an overall dip.
Year-on-Year Sales Comparison
Property sales rose by 1% in 2024 compared to 2023. District-level trends were varied:
- Nicosia: Up 14% (3,527 sales in 2024 vs. 3,105 in 2023)
- Larnaca: Up 5% (3,356 vs. 3,185)
- Paphos: Down 8% (3,107 vs. 3,375)
- Famagusta: Down 5% (775 vs. 812)
- Limassol: Down 1% (5,032 vs. 5,092)
Market Segment Analysis
Domestic Market
Sales to Cypriot buyers in December 2024 increased by 1% compared to December 2023, comprising 63% of total transactions. Notable changes include:
- Limassol: Up 29%
- Paphos: Up 10%
- Larnaca: Up 2%
- Famagusta: Down 22%
- Nicosia: Down 19%
For the full year, domestic sales rose by 10%, with gains in all districts except Famagusta, where sales fell by 16%.
Overseas Market
Sales to overseas buyers fell by 5% in December 2024 and 10% over the year. The most popular districts, Limassol and Paphos, saw declines of 23% and 14%, respectively. Conversely, smaller districts experienced growth:
- Nicosia: Up 19%
- Famagusta: Up 13%
- Larnaca: Up 4%
EU vs. Non-EU Buyers
EU Nationals: Sales to EU citizens fell by 3% in 2024. While Paphos recorded an 8% drop, smaller districts like Famagusta (22%), Nicosia (10%), and Larnaca (6%) saw modest increases.
Non-EU Nationals: Transactions by non-EU buyers declined by 12%, with sharp decreases in Limassol (26%) and Paphos (16%). However, Nicosia, Famagusta, and Larnaca recorded gains of 28%, 7%, and 4%, respectively.
Long-Term Trends and Challenges
Property sales in Cyprus peaked in 2007, driven by foreign buyers, but the 2008 global financial crisis led to a sharp decline. The market hit its lowest point in 2013 during Cyprus’s economic crisis, with just 3,767 sales. Since then, gradual recovery has been observed, punctuated by events such as the COVID-19 pandemic and controversies surrounding the “Golden Passport Scheme.”
Persistent issues—including delays in issuing title deeds, non-performing loans, and property repossessions—continue to challenge the market.
EU-Driven Reforms
To address these issues, Cyprus’ Recovery and Resilience Plan (RRP), co-funded by the EU, outlines key reforms:
- Streamlining the issuance of title deeds and addressing pending cases.
- Expanding building permit policies to cover up to four residential units per plot.
- Introducing incentives to reduce construction irregularities.
- Amending the Sale of Property Law to ensure timely property transfers.
If implemented effectively, these measures could enhance market efficiency and buyer confidence.
Conclusion
Despite achieving record sales in 2024, the Cypriot property market faces a mixed outlook. While domestic sales showed growth, the decline in overseas demand highlights underlying challenges. The trajectory for 2025 will depend on the success of ongoing reforms and external market conditions.
Article Credits go to Nigel Howarth
