Cyprus real estate market analysis and forecasts for 2024

The property market in Cyprus remains one of the most important and relevant sectors of the island’s economy, attracting the attention of both local residents and foreign investors. Its relevance and significance are based on a number of key factors:

✅ Legal Stability: Cyprus is renowned for its stable political system and legal infrastructure, which enhances confidence in the local property market.

✅ Tourism and Leisure: Cyprus remains one of the popular destinations for tourism and purchasing a second holiday home. The country attracts tourists and investors with its pleasant climate, high-quality infrastructure, cultural attractions and beautiful beaches, which supports the demand for real estate, both for personal residence and for rental.

✅ Overseas Investment and Residence Status: Cyprus attracts foreign investors through its permanent residence by investment program (Immigration Permits For Investors).

✅ Regional Diversity: Different regions of Cyprus offer different opportunities and property values, making this market attractive to a diverse range of buyers and investors.

Due to these factors, the property market in Cyprus continues to be the focus of attention both for those considering it as a potential investment property and for those planning to move or purchase a home on this picturesque Mediterranean island.

What kind of property will be bought in Cyprus in 2024

There is a large selection of properties available in Cyprus, allowing investors to choose properties that suit their budget and objectives.

• Residential property in Cyprus

Buying residential property in Cyprus is a promising investment with several beneficial aspects. First, purchasing housing in areas with high rental demand can provide stable, long-term rental income. This is a great opportunity for investors looking for passive income.

Secondly, if you are planning to move to Cyprus to live, then buying your own home is also profitable.

The most requested types of residential property in Cyprus are apartments, villas and townhouses.

The price of housing depends on various factors, such as location in a certain area, proximity to the sea, accessibility to transport and the availability of infrastructure of the residential complex, including a swimming pool, elevator and parking.

• The average cost of apartments in Cyprus is 250,000 €

For example, you can buy an apartment in Larnaca in close proximity to Blue Flag beaches on the Finikoudes promenade with an area of 79 m² from 185,000 €.

The cost of an apartment in Paphos, 10 minutes from the beach and with an area of 83 m², starts from 186,000 €.

If you are looking at modern apartments in Paralimni, prices may vary depending on the area, starting from €169,000 for an apartment from 51 m².

Apartments in Limassol with 2 bedrooms and 2 bathrooms with a total area of 109 sq.m. can cost from 321,000 €.

• The average cost of a villa in Cyprus is 350,000 €

Villas in Larnaca with panoramic sea views with an area of 168 – 182 m² are available from 300,000 €.

Price for a villa in Paphos with 3 bedrooms and a total covered area of 164 sq.m. is from 400,000 €.

You can buy a villa on the coast in Protaras with an area of 326 m² from 482,000 €.

Villas with views of Ayia Napa within walking distance to blue flag beaches and with an area of 164 – 191 m² can be purchased from €525,000.

• Commercial real estate

Cyprus also provides a variety of opportunities for investment in commercial property. Currently, investing in office space such as business centers and offices in Cyprus is considered one of the most profitable investment options.

The constant influx of international companies choosing to relocate their business to Cyprus is creating increased demand for high quality office space. This means that owning commercial real estate in Cyprus can become a long-term and stable source of income for investors who want to invest their funds in a promising area.

• Tourist properties in Cyprus

Tourist real estate is also a profitable investment area. The island is actively developing its tourism infrastructure, attracting the attention of international tourists and creating a favorable environment for the hotel business.

Investments in hotels or hotel rooms in Cyprus can generate significant profits, given the dynamic growth of the tourism industry on the island. Investing in tourist real estate provides an opportunity to bring stable and long-term income.

Read more: Cyprus Property Investments: Residential, Commercial or Tourism Sector

In addition to the variety of types of real estate, Cyprus provides unique opportunities for investors wishing to purchase land for construction purposes.

Buying land in Cyprus for construction is one of the most promising investment options in 2024.

Where to invest in real estate in Cyprus in 2024

The Cyprus property market has a variety of areas that attract local buyers and foreign investors.

Popular areas for buying property in Cyprus include Limassol, Larnaca and Paphos, which attract three quarters of all home purchases. 9 out of 10 home sales transactions take place in these areas.

These areas attract foreign buyers for their beaches, developed infrastructure and opportunities for a high-quality lifestyle.

✔ Larnaca

Larnaca stands out from other areas of Cyprus with significant growth in both the holiday and lifestyle apartments and houses categories. Larnaca is actively developing in terms of construction. New residential complexes, commercial facilities and infrastructure create a modern space for life and business. This creates opportunities for real estate investors.

Given the active construction and growing interest in the region, property values in Larnaca may have the potential to rise, which could make investments in the region profitable.

✔ Pathos

The Paphos area is also seeing significant growth in the lifestyle apartments and villas category. It is important to emphasize that Paphos occupies a very significant share of the Cyprus real estate market, accounting for approximately 20%-25% of all transactions for the purchase and sale of real estate on the island. This demonstrates its outstanding appeal among investors and property buyers. The stable demand for property in this region makes Paphos one of the key cities in the Cyprus property market and an attractive place for investment.

✔ Limassol

Limassol is one of the main economic centers of Cyprus, with a concentration of business, infrastructure and jobs. This creates a need for residential and commercial space, making real estate in this region in demand.

Investors may consider purchasing properties that can be successfully rented to tourists.

Limassol also stands out for its high-end property sales: three quarters of apartments and houses costing more than 1.5 million euros are purchased in this area.

Other areas: The remaining areas of Cyprus are experiencing modest but steady growth. Significant growth was recorded in the holiday home category in the Famagusta area: Ayia Napa, Protaras and Paralimni.

Read: Where is the Best Place to Buy Property in Cyprus? Exploring the Top Regions for Property Investment.

Prices for purchasing property in Cyprus in 2023

According to statistics from Chartered Surveyors, the market value has been increasing annually.

During the third quarter of 2023, there was a notable surge in the prices of residential properties, with apartments taking the lead over houses. Additionally, office and warehouse prices saw an increase, while retail property prices remained stagnant.

Specifically:

• Apartments saw an increase of 12.11%
• Houses experienced a rise of 9.03%
• Retail premises went up by 1.57%
• Warehouses saw a rise of 6.95%
• Offices experienced an increase of 8.46%

In fact, the RICS report indicates a general rise in property values across Cyprus and all major cities. However, we’ve observed more than a 15% increase in property sales prices from various regions and major developers in Paphos, Larnaca, and Limassol, specifically for apartments.

Based on our clients’ cases, we’ve noted that those who purchased properties from developers in pre-market sale auctions or during the early stages of house construction last autumn in 2022 have seen a minimum increase of 35% in their property’s value by late spring 2023.

Rising prices for rental properties in Cyprus

Rental values have seen a steady increase throughout the year, with holiday apartments leading the way, followed by residential apartments, houses, and holiday houses. Rental values for offices, warehouses, and retail premises have also risen.

Here are the rental value increases:

• Apartments experienced an 18.99% rise
• Houses saw an increase of 14.46%
• Retail premises rose by 2.90%
• Warehouses experienced a rise of 3.07%
• Offices saw an increase of 8.30%
• Holiday apartments witnessed an increase of 20.01%
• Holiday houses experienced a rise of 11.24%

Accordingly, if you’re considering investing with rental prospects, Feod Group’s lawyers recommend two options:

1. We analyze pre-market sales offers from property developers in Cyprus and provide consultations throughout the process. The most advantageous prices are available for multi-block developments with a completion period of 2 years.
2. For quicker profit, you can purchase an apartment for refurbishment, carry out the refurbishment, and then sell it. This option could yield around 30% of net income within 3-4 months. Read: Investing in Renovated Apartments in Cyprus for Resale: Advantages and Profitability Analysis

Feod Group boasts experienced property lawyers, associate valuers, and brokers who will assist you at every step to achieve the desired outcome!

Real Estate Price Forecast in Cyprus for 2024

Experts’ forecasts for the Cyprus real estate market in 2024 indicate a continued rise in property prices on the island. The market currently offers a wide selection of new properties, enhancing the attractiveness of this investment prospect.

Additionally, the island attracts tourists, creating demand for short-term rentals. This consistent demand sustains stable and growing property prices.

This trend is expected to persist in the coming years, solidifying Cyprus’s position as an attractive and reliable real estate market in the European Union.

If you are considering Cyprus as a location for property investment, it is crucial to conduct thorough market research, paying attention to the property’s location, budget, and long-term prospects.

We are prepared to provide you with expert consultations and assistance in selecting the best real estate options tailored to your needs and investment goals.

Feod Group has experienced lawyers and associate appraisers who will help you every step of the way to achieve your desired result!

Legal Services for Real Estate Acquisition in Cyprus