High-end property market levelling out to 2021 figures

Both the value and volume of residential property sales declined in the first quarter of 2024, though this was mostly due to the previous years’ steep growth, according to Cyprus Sotheby’s International Realty’s quarterly report “INSIGHTS” on Cyprus’ Residential Real Estate market, which is based on data from the Cyprus Land Registry.

As for its predictions for the year, the outlook for the high-end property market is moderate and it expects a stable demand for residential property from both local and international buyers supported by traditional Cyprus market drivers.

Anastasia Yianni, CEO of Cyprus Sotheby’s International Realty, commented: “Even though the figures of this period show us a decline in both value and volume of sales, we should consider it in the context of the previous years’ steep climb up. The current situation on the real estate market shows levelling out to the statistics similar to the year 2021. The figures for Q1 2024 are definitely lower than in 2023, but that was expected as the market stabilises after strong growth in 2022 and 2023 years."
In the last two years (2022-2023), she added, the market was super dynamic due to the geopolitical tension, primarily influenced by the ongoing geopolitical situation that led many families and businesses to relocate to safer countries like Cyprus.
"We have a moderate outlook for the high-end property market for 2024 and expect a stable demand for residential property from both local and international buyers supported by traditional Cyprus market drivers such as attractive lifestyle and business opportunities with a sunny climate, safety, reasonable cost of living, favourable tax system, the island's prospects as an international business centre and one of the top investment destinations in Europe," Yianni added. " As we navigate the Cyprus real estate market into 2024, it's crucial to consider these trends and insights for informed decision-making.”

The key report takeaways for the first quarter of 2024

According to the Cyprus Land Registry, for the first quarter of 2024, the number of sales contracts reached 2,456 with a total value of €585m.

The high-end property market recorded 659 transactions, representing 27% of all deals within this reported period. The total value of these high-end properties reached €290m, accounting for 49% of the overall market value.

During this period, the high-end apartment segment recorded 550 transactions, amounting to €190.5m. The premium housing segment resulted in 109 deals, with a total value of approximately €100 million.
In Limassol, the market registered 635 residential property transactions, 51% (322 properties) of which were from the high-end segment, indicating particularly great demand for premium residential properties in this region. High demand was reported for apartments priced above €200,000, with 283 transactions accounting for 51% of the total in Cyprus, and for houses priced above €500,000, with 39 transactions representing 36% of the total for Cyprus during the past quarter.
Pafos recorded 469 residential property transactions, with 22% (102 properties) in the high-end segment, underscoring the sustained demand for premium residential properties. During this period, 37 houses priced above €500,000 were sold, making up 34% of such sales in Cyprus, and 65 apartments priced above €200,000 were sold, accounting for 12% of the total in Cyprus.
In Nicosia, the residential transactions totalled 705 deals, with 19% (136 properties) in the high-end market segment. The demand for premium residential properties in Nicosia is moderate, as reflected in the sales of 15 houses (14% of the total in Cyprus) and 121 apartments (22% of the total in Cyprus) during the past quarter.
In Larnaca, residential transactions totalled 532 in Q1 2024, with only 15% (81 properties) falling into the premium market segment.
The emerging demand for premium residential properties in Larnaca is reflected in the sale of 10 houses priced above €500,000 (9% of the total for Cyprus) and 71 apartments priced above €200,000 (13% of the total for Cyprus) during the reported period.
In Famagusta, the market registered 115 residential property transactions, of which 16% (18 properties) were under the high-end segment.
The demand for premium residential properties in Famagusta shows potential for growth, as reported by 8 houses (7% of Cyprus's total) and 10 apartments (2% of Cyprus's total) being sold in the premium category over the last quarter.

Find out more and download the free Q1 INSIGHTS 2024 report at the link below:
https://www.cyprus-sothebysrealty.com/#report