Cyprus Luxury Real Estate Market Sees Shift Towards Affordable Housing in 2024

In 2024, Cyprus's luxury real estate market experienced a notable shift, with a significant decline in high-end property sales, particularly in the apartment segment. According to Landbank Analytics, the number of transactions for apartments priced over €500,000 dropped by more than 50%, and those exceeding €1 million decreased by 17.2%.

The average price of new apartments nationwide fell by over 11%, from €316,000 in 2023 to €281,000 in 2024. Conversely, the average price for new houses remained relatively stable at €461,000. This trend indicates a market shift towards more affordable housing options, with a growing preference for individual homes over multi-unit developments.

Regional Market Dynamics

Nicosia: The capital city saw an increase in new apartment sales, with 771 units sold in the €150,000–€300,000 range and 690 units below €150,000. The average apartment price decreased by 3.8% to €190,000. House sales were concentrated in the €150,000–€300,000 bracket, with an average price drop of 5.7% to €314,500.

Limassol: Known as Cyprus's most expensive market, Limassol experienced a 9.4% decrease in average new apartment prices to €426,000. However, new house prices increased by 4.4% to €557,000. The majority of apartment sales were below €500,000, with a significant reduction in transactions for properties over €500,000.

Larnaca: Apartment prices remained steady at an average of €196,000, while new house prices declined by 8.5% to €340,000. There was a notable 42.1% increase in apartment sales within the €150,000–€300,000 range.

Paphos: The average price for new apartments decreased by 20.3% to €312,000, whereas new house prices rose by 3.6% to over €590,000. Apartment sales in the €150,000–€300,000 range doubled compared to the previous year.

Famagusta: This region saw a 5.2% increase in average apartment prices to €222,000 and a 15% rise in house prices to €367,500. Most apartment sales were within the €150,000–€300,000 bracket.

Market Influences and Trends

Andreas Christophorides, CEO of Landbank Group, attributes the decline in luxury property transactions to two main factors: a growing focus among local buyers on affordable housing and a shift in foreign investor interest towards more budget-friendly options. This trend is particularly evident in Limassol, traditionally Cyprus's premier luxury real estate market.

Despite the downturn in high-end property sales, PwC Cyprus reports a moderate recovery in the ultra-luxury segment (properties over €1.5 million), with 188 transactions totaling €500 million in 2024. Limassol accounted for 74% of these deals, followed by Paphos with 19%.

Overall, the Cypriot real estate market demonstrated resilience in 2024, achieving a record total transaction value of €5.71 billion, a 1% increase from the previous year, despite a 3% decrease in the number of transactions. Residential properties dominated the market, comprising 67% of total transactions, while commercial real estate also showed significant growth, particularly in Limassol and Nicosia.

The 2024 Cypriot real estate market reflects a strategic shift towards affordability and sustainable growth. While the luxury segment faced challenges, the overall market remained robust, adapting to changing buyer preferences and economic conditions.