Apartment Prices Rise, House Prices Drop in Cyprus

The Ask Wire Index for Q4 2024 (source) shows an increase in apartment prices in both sales and rental markets across Cyprus. However, prices for houses, offices, and holiday villas remained relatively stable, while warehouse and retail space values declined.

Annual Market Trends

According to a report by Cyprus’ leading real estate analytics platform:

Apartment prices increased by 1.3% over the year, while rental rates rose by 1.5%.
Holiday apartments became 0.9% more expensive.
House prices fell by 0.3%, with rental rates declining by 0.8%.
Holiday villa prices dropped by 0.6%.
Warehouse prices fell by 2.3% for sales and 2.0% for rentals.
Retail space prices saw a 1.7% decrease.

Regional Market Insights: Larnaca Trends

Compared to Q4 2023, rental rates in Larnaca remained relatively stable.

Sales market:
Apartment prices increased by 1.5%.
Holiday apartments saw a 1.1% rise.
Declining sectors:
Warehouses and retail spaces fell by 2%.
House prices dropped 0.8%.
Office space saw a 0.6% decline.

Rental Market Overview: Cyprus’ Most and Least Expensive Areas

According to Andreas Christophorides, CEO of Landbank Group, the average monthly rent for:

Apartments in Cyprus is €1,803.
Houses in Cyprus is €3,249.
Limassol: The Most Expensive City
Average apartment rent: €2,742/month.
Two-bedroom apartments: €2,460.
One-bedroom apartments: €1,599.
Three-bedroom apartments: €3,225.
Houses in Limassol are even pricier, averaging €4,492/month.
Three-bedroom houses: €2,773.
Four-bedroom houses: €5,000.
Five-bedroom houses: €8,936.
Famagusta: The Most Affordable
The lowest average apartment rent is in Famagusta, at just €745/month.
Nicosia is another budget-friendly option:
Average apartment rent: €1,017/month.
Two-bedroom apartments: €996.
Three-bedroom apartments: €1,319.
One-bedroom apartments: €674.
Houses in Nicosia are €1,900/month on average.
Three-bedroom houses: €1,335.
Four-bedroom houses: €2,094.
Larnaca:
Apartments: €1,120/month.
Houses: €2,340/month.
Paphos:
Apartments: €1,193/month.
Houses: €2,692/month.

Real Estate Sales: A Mixed Performance

According to Cyprus' Department of Lands and Surveys, total property sales in 2024 grew by only 1% (source):
Nicosia and Larnaca saw increases of 14% and 5%, respectively.
Paphos experienced an 8% decline, while Famagusta fell by 5% and Limassol by 1%.

Sales by Buyer Type

Local buyer transactions grew by 10%.
All regions showed growth except Famagusta, where sales declined 16%.
Foreign buyer transactions fell by 10%.
Nicosia, Famagusta, and Larnaca saw increases of 19%, 13%, and 4%.
Limassol and Paphos declined sharply by 23% and 14%, respectively.

Sales by Nationality

EU citizens' purchases fell by 3%, including:
A 13% drop in Limassol.
An 8% drop in Paphos.
Non-EU citizen transactions declined by 12% year-on-year.
Nicosia saw a 28% increase.
Famagusta and Larnaca rose by 7% and 4%.
Limassol saw a 26% decrease, while Paphos fell by 16%.

Expert Opinions: 2024 & 2025 Market Outlook

Pavlos Loizou, CEO of Ask Wire, describes 2024 as a transitional year for the real estate market, balancing strong fundamentals with shifting dynamics:

New housing supply is easing price pressures on sales and rentals.
Challenges remain, such as high mortgage rates and rising construction costs.

Polis Koursouidis, President of the Cyprus Association of Property Valuers, predicts: Interest rate cuts in 2025 will stimulate the housing market.
Apartments will remain the most in-demand type of property.
Locals invest around €250,000 - €300,000, while foreigners often spend up to €500,000.
Marinos Kineyrou, President of the Cyprus Real Estate Agents Registration Council, called 2024 a challenging year for the property sector. Key issues include:
- Permit delays from local authorities.
- Concrete production strikes affecting construction.
- Unlicensed agents deceiving unsuspecting clients