Assessing the Cypriot Real Estate Market Amidst Global Challenges
The Cypriot real estate market has been experiencing a period of mixed fortunes, as outlined by Michalis Tsangarides, director of Delfi Partners. External reasons and the prevailing economic conditions have been influential in shaping both local and international demand within the sector. Despite these challenges, foreign investors have played a crucial role in sustaining the market.
Tsangarides’s analysis of the first quarter of 2024 reveals a complex landscape. Nicosia has seen a positive trend, with investment activity on the rise, while Larnaca’s market has remained relatively static. Other regions, however, have not fared as well, with notable declines in property sales.
The resilience of the market is evident from a slight increase in sales documents filed in early 2024, which Tsangarides views as an encouraging sign amidst the pressures of geopolitical instability, inflation, and high interest rates. Nicosia, in particular, has demonstrated robust growth with a 42 percent increase in sales. Larnaca also experienced growth, albeit at a more modest rate of 6 percent.
Contrastingly, Limassol and Paphos have witnessed downturns, with Paphos halting its previously continuous growth and Famagusta facing the most significant decrease in sales. Despite these local variances, international buyers remain a cornerstone of the market, with four out of ten property sales attributed to this group in the first quarter of 2024.
Data from the Department of Land and Surveys indicates that international property sales were led predominantly by non-EU members. Paphos stands out as a region where international sales have notably surpassed local purchases.
Tsangarides acknowledges the sector’s crucial contribution to Cyprus’s economic growth but cautions against the potential impacts of worsening geopolitical tensions. Nevertheless, he remains optimistic about the market’s capacity to rebound should conditions normalize, ready to capitalize on its inherent potential.
