A recent announcement by the Ministry of Interior shows a strong rise in property sales, which indicates high demand. However, the report also raises a note of caution for the future of the property market, particularly in 2025.
Industry experts warn that this high demand, coupled with limited supply and delays in new properties entering the market is paving the way for price increases. The Ministry’s announcement highlights a steady growth in new property sales, with sales of apartments significantly outpacing those of houses.
According to the Department of Lands and Surveys, property sales in the first nine months of 2024 rose by 19.2% compared to the same period last year. Between January to September, 5,253 sales contracts for residential properties were deposited; 4,335 for apartments and 918 for houses. This trend spans all districts, with the highest increases in areas with minimal foreign investor interest.
Apartments in high demand
Apartment sales have surged by 30% nationwide, in contrast to a 9.2% drop in house sales compared to the same period in 2023. This shift, which is very popular with young people and families, is driven by housing costs and challenges in securing financing for larger down payments on homes.
Additionally, the geographic distribution of new purchases and the Ministry’s announcement indicate that many people in Nicosia have used housing assistance programs to buy apartments, especially in efforts to revitalize the mountain, remote, and disadvantaged rural areas.
The table below, from the Interior Ministry’s website, shows the number of sales and their total values in each district in the first nine months of 2024 – and the percentage increase and decrease in the number of sales and values compared to the first nine months of 2023.
| District | Apartments | Houses | |||||||
|---|---|---|---|---|---|---|---|---|---|
| Volume | % | Value (€) | % | Volume | % | Value (€) | % | ||
| Nicosia | 1,194 | 29 | 236.9 mln. | 25.2 | 161 | 3.2 | 49.8 mln. | 2.6 | |
| Limassol | 1,469 | 17 | 820 mln. | 41 | 237 | -18.5 | 165 mln. | 6 | |
| Larnaca | 1,113 | 35.4 | 218.8 mln. | 39.5 | 191 | 14.4 | 64.3 mln. | 6.2 | |
| Paphos | 416 | 42 | 138.4 mln. | 31.4 | 243 | -23.1 | 149.6 mln. | -16.8 | |
| Famagusta | 143 | 46 | 249.1 mln. | 62.1 | 86 | 6.2 | 28.8 mln. | 10.3 | |
| Cyprus Total | 4,335 | 27.7 | 1.45 bln. | 38.1 | 918 | -9.2 | 457.2 mln. | -2.8 | |
High demand outpacing supply
Speaking to Phileleftheros, the chairman of the Property Valuers Association Polys Kourousidis said that these figures clearly reflect a high demand for housing and emphasized this trend should serve as a warning for the future.
The strong demand is expected to continue next year, but supply has not kept pace. With delays in new properties entering the market – largely due to bureaucracy in new District Administration Organizations, which began issuing permits in June 2024 – the situation could lead to further price increases if demand continues to grow at its present rate.
Property buyer demographics
Mr Kourousidis also provided insights on the buyer demographics:
- Nationwide, about half of the buyers are Cypriots and half are foreigners.
- In Nicosia, Cypriots make up 90% of buyers.
- Foreign buyers are particularly active in Larnaca and Paphos, where many Israeli buyers are involved, and to a lesser extent in Limassol.
- In Famagusta, transactions are fewer and mainly involve holiday homes.
Discussing the large increase in apartment purchases, Kourousidis said that these are mostly for owner-occupation, especially in Nicosia, where the typical two-bedroom apartment is priced between €220,000 and €230,000.
Analysing the Department of Lands and Surveys data, Kourosidis concluded that 5,253 sales contracts were submitted in the first nine months of this year. This averages to 583 new property sales per month or about 145/district. Given an average of 22 working days per month, six properties were sold/day/district, which is a manageable level for the market. He added that if the volume of sales was higher, the market may face difficulties meeting the increased demand.
