The Cyprus property market is expected to experience slower growth in 2025 following its strong post-pandemic recovery, as new challenges emerge that demand strategic responses, according to a recent industry survey.
Danos International Property Consultants and Valuers predicts moderate growth over the next two years. External factors, such as regional conflicts, are expected to pose challenges; however, these are likely to be offset by stabilizing elements within the market. Cypriot banks have indicated that high interest rates will begin to decline, which, combined with stable demand and the completion of planned construction projects, will help address market needs.
The latest survey by Danos International involved 300 participants from construction companies, real estate agencies, and banking institutions. It offers a comprehensive overview of current market dynamics, price trends, and stakeholder expectations for the coming year.
Overall, market sentiment remains cautiously optimistic. A sizeable proportion of respondents hold a positive or neutral view of current conditions, with 13% and 33% rating the market as “very positive” or “positive,” respectively. Meanwhile, 37% consider the market to be “stable.” On the other hand, 17% identified negative market indicators, though none of the participants described their outlook as “very negative.”
Property market survey respondents’ views
When looking ahead to 2025, respondents revealed a mix of optimism and caution. One-third (33%) of participants expressed optimism about the market’s prospects for the next 12 months. Another 43% anticipate that market conditions will remain stable, reflecting a belief in the market’s resilience despite emerging challenges. However, 24% of respondents expressed pessimism regarding the market’s outlook for 2025. Importantly, while some concerns persist, none of the respondents indicated deep or severe pessimism.
The findings underline the need for careful planning and adaptation within the sector. As interest rates are expected to ease and construction projects align with demand, the property market may be able to maintain a degree of stability despite external pressures. Stakeholders appear prepared to navigate the challenges ahead, supported by a cautiously optimistic outlook and insights from the survey.
This optimism reflects the belief that while growth may slow, the property market is well-positioned to address shifting dynamics and remain a critical component of economic activity in the coming years.
