The Cyprus property market sees best start since 2008, with sales rising 1.8% amid economic challenges.Limassol - August 27, 2024 - The Cyprus property market has seen an exceptional start to 2024, achieving its best performance for the first seven months of the year since 2008, according to data from the Land Registry Department. Despite ongoing interest rate hikes and economic uncertainties, Cyprus real estate sales have continued to rise, demonstrating resilience and sustained investor interest.
The latest figures from the Land Registry reveal that 9,210 sales documents were submitted in the first seven months of 2024, up 1.8% from 9,051 during the same period last year. This growth marks the highest number of sales documents recorded since 2008 when sales reached 10,152. Compared to pre-pandemic levels in 2019, real estate sales have surged by an impressive 42.7%.
The most significant annual increases were recorded in Nicosia and Larnaca. Sales in Nicosia soared by 23.6%, with 2,072 sales documents compared to 1,676 last year. Larnaca followed with a 12.2% increase, rising from 1,777 to 1,994 sales documents. In contrast, Paphos, Limassol, and the free area of Famagusta experienced declines. However, compared to 2019, all cities except Famagusta show marked growth in sales.
"The growth in Cyprus's real estate market in 2024 reflects strong investor confidence in our economy and the robust demand for properties, particularly in Nicosia and Larnaca. Despite challenges such as rising interest rates and construction costs, the market has shown remarkable resilience, which is a positive sign for the future," said a spokesperson.
Economist Tasos Yasemides highlighted that while Nicosia and Larnaca are driving the market's growth, a potential market correction could be underway. This adjustment may help to balance supply and demand dynamics, given the increased availability of properties for rent and sale, particularly in the Limassol district. Additionally, a reduction in construction costs is expected to ease the upward pressure on prices, providing more opportunities for buyers and investors.
Elaborating on the market trends, the spokesperson stated, "Our analysis indicates that the increase in property sales is driven by several factors, including a rise in demand from companies relocating to Cyprus and local buyers seeking investment opportunities. While there has been a slowdown in some areas due to supply constraints and increased construction costs, the overall market trajectory remains strong, supported by new developments and infrastructure projects."
Looking back, 2023 was a landmark year for the Cyprus real estate sector, with a total of 25,400 sales transactions amounting to €5.6 billion in value. As the market continues to evolve in 2024, Chris Michael Property Group remains committed to leveraging its expertise in structuring and managing real estate investments across Cyprus, offering clients innovative solutions in a dynamic environment.
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Chris Michael Property Group is an investment manager specializing in structuring and managing real estate investments in Cyprus, including credit and private equity property investments. Visit https://chris-michael.com.cy/
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