The number of properties sold in Cyprus during 2024 reached the highest level on record since 2007, with a total of 15,797 contracts deposited with the Department of Lands and Surveys.
However, as you will read later in this report, sales to the overseas market have been falling, while sales to the domestic market have been slowing. How the market will perform in 2025 remains to be seen.
December 2024 property sales
Sales in December, as measured by the number of contracts deposited at Land Registry offices, fell 1% compared to December 2023 according to official figures from the Department of Lands and Surveys.
Although sales in the popular coastal areas of Paphos rose 34% compared to December last year, falls in the number of sales of 16% in both Nicosia and Famagusta and falls of 2% and 1% in Limassol and Famagusta respectively pushed the total into negative territory.
Over the 12 months of 2024 sales rose by 1% compared to 2023. Although sales in Nicosia and Larnaca rose by 14% and 5% respectively, they fell 8% in Paphos, 5% in Famagusta and 1% in Limassol.
Market segment analysis
Property sales to the domestic market
The total number of sales to the domestic (Cypriot) market December 2024 rose 1% compared to December 2023 and accounted for 63% of the total number of sales in the month.
Although sales in Limassol, Paphos and Larnaca rose by 29%, 10% and 2% respectively, the number of sales fell by 22% in Famagusta and 19% in Nicosia.
Over the 12 months of 2024 sales to the domestic market rose by 10% compared to 2023. All districts gained ground with the exception of Famagusta, where sales fell by 16%.
Property sales to the overseas market
The total number of property sales to the overseas market (both EU and non-EU citizens) in December 2024 fell 5% compared to December 2023.
Although sales in Paphos rose by 47% and sales in Nicosia by 2%, They fell 41% in Limassol, 7% in Famagusta and 4% in Larnaca.
Over the 12 months of 2024 sales to the overseas market fell by 10% compared to 2023. Although sales in Nicosia, Famagusta and Larnaca rose by 19%, 13% and 4% respectively, they fell by 23% in Limassol and 14% in Paphos – the two most favoured areas of the island for overseas investors looking to buy a place in the sun.
Property sales to EU nationals (excluding Cypriots)
Sales to EU nationals fell 5% compared to December 2023 and accounted for 12% of the total number of sales (1,339) achieved during the month.
Paphos was the only district where more properties were sold, up a remarkable 55% compared to December 2023.
Over the 12 months of 2024 sales to EU nationals fell 3% compared to 2023. Although sales in Famagusta, Nicosia and Larnaca rose by 22%, 10% and 6% respectively, these were more than wiped out by a 13% fall in sales in Limassol and an 8% fall in Paphos.
Property sales to non-EU citizens
Sales to non-EU citizens in December 2024 fell 5% compared to December 2023 accounting for 25% of the total number of sales (1,339) achieved during the month.
While sales in Paphos rose 43% and sales in Nicosia, Famagusta and Larnaca rose by 22%, 15% and 4% respectively, a fall of 43% in Limassol pushed the total into negative territory.
Over the 12 months of 2024 sales to Non-EU nationals fell 12% compared to 2023. Although sales in Nicosia, Famagusta and Larnaca rose by 28%, 7% and 4% respectively, falls of 26% in Limassol and 16% in Paphos were recorded by the Department of Lands and Surveys.
The last quarter of a century in perspective
During the run-up to Cyprus accession to the EU in 2004, the number of property sales and their prices soared with many Cypriots finding themselves priced out of the market by foreigners looking for a place in the sun.
Driven by foreign buyers, property sales peaked at 21,245 in 2007. However, the global financial crisis – the most severe economic downturn since the Great Depression of the 1930 – triggered the collapse of property bubbles worldwide.
In Cyprus, property sales steadily declined until the country faced its own economic crisis in 2012-2013 that resulted from the exposure of Cypriot banks to overleveraged local property companies, the Greek government-debt crisis, the downgrading of the Cypriot government’s bond credit rating to junk status by international credit rating agencies.
In March 2013, Cyprus secured a €10 billion bailout package from a troika of international lenders, comprising the European Commission, the International Monetary Fund, and the European Central Bank. As part of the bailout conditions, the troubled Laiki Bank was shut down, uninsured bank deposits exceeding €100,000 were subjected to a “haircut,” and the remaining assets of Laiki Bank were absorbed by the Bank of Cyprus.
The economic turmoil had a profound impact on the property market, with only 3,767 properties sold in 2013.
Since then, the Cypriot banks have become more ‘responsible’ and the property market has recovered to a degree, albeit with challenges along the way. These include the effects of the COVID-19 pandemic in 2020, controversies surrounding the “Golden Passport Scheme,” and persistent issues such as title deed delays, property repossessions, non-performing loans, and trapped buyers, which remain unresolved.
EU involvement
One of the reforms necessary for Cyprus to meet the strategic objectives of its Recovery and Resilience Plan (RRP), which is co-funded by the European Union and will provide a grant of €1.0 billion and a loan of €200 million, is designed to address inefficiencies of issuing and transferring Title Deeds, namely:
- examination of pending cases for the issuance of title deeds or rejection of the cases,
- extension of the new planning and building permit policy, currently up to two residential units, to four residential units in a plot, which shall reduce the time needed to issue building and spatial permits,
- review of the Streets and Buildings Regulation Law to introduce the right incentives for the supervising engineer to further discourage irregularities that would result in title deeds not being issued,
- amendment of the Sale of Property (Specific Performance) Law, which shall ensure in advance that the transfer of immovable property is executed as soon as the buyer fulfils his/her contractual obligations.
If implemented correctly, these changes should help alleviate some of the issues facing those who buy property in Cyprus.
