Regional complications and instability have not watered down favourable property purchase conditions in Cyprus, as foreign interest clearly indicates over the past two years, with an even better prospect over 2025.
Foreign nationals, both EU and third country citizens, accounted for approximately 50% of all property purchases both in 2023 and 2024, demonstrating confidence in the local market, but also clearly indicating that the positive real estate conditions would have been very different without them.
According to market stakeholders, foreign buyers have not restricted themselves to real estate investments, but have also expanded to retail, forex and technology companies, as well as a number of other sectors, making a significant contribution to growth and the economy.
2024 closed at approximately the same levels as 2023 in terms of sales (1% increase), a mark of market resilience to the challenges that arose. This included both domestic conditions, such as inflation and high interest rates, and external factors, prominently the on-going Middle East and Ukraine wars, as well as fluctuations in oil and natural gas prices.
2025 forecasts point to similar levels in purchases by both Cypriot and foreign buyers.
Larnaca rises
Israelis, Lebanese, Russians, and Ukrainians continued buying Cypriot properties, contributing to the increase in sales in 2024.
Strong foreign interest mostly by these nationals took Larnaca to 3rd place in sales for the first time (3,350 sales 5% up), overtaking Paphos.
Low prices over time, factored in with the airport factor, investments by a number of entrepreneurs in new hotels, the mall facility as well as the upcoming development of the Larnaca-Dhekelia coastal front spanning 2.5 kilometres, are the most significant factors pointing to Larnaca’s steady rise and potential for future growth.
Limassol remained top of the pile in real estate purchases.
Cypriot buyers not far behind
Moving to the other side of sales, namely domestic buyers, 2024 showed that a significant portion of Cypriot investors still have the capacity to support the market.
This was evidenced by the large increase in sales recorded in the capital, with the vast majority of transactions involving domestic buyers.
Recording 3,500 sales, Nicosia remained a major piece of the local real estate pie, becoming the natural source of property purchases for Cypriots.
Limassol, a city that also attracts many foreign buyers was still top with 5,000 sales, albeit recording a slight decline that is possibly due to Larnaca’s rise.
Paphos Declines
The largest drop in sales was recorded in Paphos, resulting in the city relinquishing 3rd place with approximately 3,100 sales, a fall of 8%.
However, it should be noted that the city offers more expensive plots than Larnaca, therefore the total turnover from sales might be higher.
Famagusta, with a very small sales cycle of 775 transactions, recorded a decrease of 5%, negligible given the small number of sales.
Kourousides Optimistic About 2025 Performance
In an interview with Philenews, President of the Property Valuers Association Polis Kourousides noted that the property market showed significant resilience in 2024, attracting interest from domestic and foreign buyers, in spite of regional and international instability.
Kourousides appeared optimistic on the 2025 prospects, noting that the property market will perform even better from both foreign and Cypriot buyers, provided that there isn’t another major disruption affecting not only the sector but the entire economy.
He further indicated that while conflicts continue, markets have absorbed the impacts and these are no longer considered causes that can further affect the property scene, unless the level of escalation forges different circumstances.
‘In 2025 we should also expect interest rates to fall, which will further facilitate property purchases’, Kourousides added.
Both domestic and foreign buyers focus on apartments, with Cypriots’ purchasing power reaching 250-300 thousand euro and foreigners going up to half a million.
