In the first quarter of 2024, it slowed down noticeably.
Completed transactions
According to a report by the Cyprus Real Estate Agents Registration Council (CREA), in the first quarter of 2024, 4,543 property transfers were carried out in the republic worth €955.8 million. The number of completed transactions was 18.6% less than the previous quarter, and their total value was 22.9% lower.
True, despite the quarterly slowdown, the Cyprus real estate market is still showing annual growth: the number of fully completed transactions increased by 16.5%, and their total value by 8.7% compared to the first quarter of 2023.
Leading cities by number of completed transactions
- Nicosia: 1,245 real estate transfers worth €198.4 million</li >
- Limassol: 1,202 transfers worth €323.8 million
- Paphos: 993 transfers
- Larnaca : 860 transfers
- Famagusta: 243 transfers
Current transactions
During the first quarter, 3,597 sales documents were deposited in Cyprus. In quarterly terms, this figure decreased by 11.1%, and in annual terms it increased slightly by 1%.
Leading cities in the number of current purchase documents sales:
- Limassol: 1 123
- Nicosia: 813
- Paphos: 774
- Larnaca: 723
- Famagusta: 164
Factors influencing the market
-
- Inflationary pressure. Rising prices for goods and services have led to a decrease in the purchasing power of potential real estate investors.
- High interest rates. The tightening of monetary policy by the Central Bank of Cyprus has increased borrowing costs, making property purchases less affordable.
- Geopolitical instability
- Geopolitical instability
The conflict in Ukraine and other global events had a negative impact on investor sentiment, which led to an outflow of investments in real estate.
Quote
Marinos Kineiro, President of CREA, commented on the alarming trend, highlighting the impact of both internal and external factors on the real estate market.
“The impact of inflation and geopolitical turmoil on the market is now clear. The real estate sector serves as a mirror of the Cypriot economy, being one of its key pillars,” he said. “The data for the first quarter of 2024 compared to the previous quarter is very alarming and should alert everyone.”
“Unfortunately, our forecasts are beginning to come true, and it is now necessary to take action, both on the part of property owners, and governments to improve the situation,” concluded Kineiru.