Property prices in Cyprus are stabilising but remain at elevated levels, making home ownership unattainable for many residents and driving up rental costs due to increased demand, market analysts report.
The Real Estate Registration Council president, Marinos Kineyirou, noted that whilst the market shows resilience, structural issues could trigger further price increases if left unaddressed.
Recent land registry data for the first nine months of 2024 showed mixed signals, with transaction volumes and values declining but sales documents trending upward. Nicosia and Larnaca have offset losses in Paphos and Limassol, whilst free Famagusta has reversed its decline to show 1% growth.
Property Valuers Association president Polys Kourousides warned that demand will remain strong through 2025, particularly from foreign buyers who now represent 50% of the market. He cited bureaucratic delays in building permits as a key factor driving up housing costs.
“Without increasing supply, we cannot solve the problem”, Kourousides said, adding that existing government initiatives like the “renovate-rent” scheme were insufficient. He warned that geopolitical tensions could sharply increase foreign demand, especially from Israeli buyers with greater purchasing power.
Some developers are considering redundancies due to permit delays affecting 5-6 projects each, according to Kourousides. He proposed public-private partnerships as a solution, suggesting state land could be offered to private funds or developers to build affordable rental housing.
“If many permits are not issued in 2025 and 2026 to introduce a large number of flats to the market, Cypriots will face serious problems as foreign buyers will absorb any available supply”, Kourousides cautioned.
Read more:
