The residential housing market in Cyprus continued its upward climb in 2024 — but it’s starting to lose steam. After a decade-long rebound from the 2012–2013 banking crisis, property prices are hitting new highs, although signs of a gradual cooldown are emerging.
Growth Still There, Just Not as Fast
According to the Central Bank of Cyprus (CBC), housing prices are still rising, but the pace has slowed. In the first quarter of 2024, home prices saw a 7.80% year-on-year increase (adjusted for inflation: 6.51%). By the third quarter, that growth decelerated to 6.51% (5.78% inflation-adjusted).
Apartments led the charge with an 8.8% annual rise, while houses followed with a 6.0% increase showing that buyers still lean toward compact, more affordable spaces.
Market Cooling & Shifting Demand
In its latest statement, the CBC pointed out that foreign interest once a strong driver of price hikes has waned, reducing the pressure that had fueled rapid increases in recent years. The overall tone? The market’s still strong, but it’s clearly entering a more balanced phase.
Location-Based Trends: Paphos Leads, Nicosia Lags
Price growth isn’t uniform across the island. Here’s the regional breakdown for Q3 2024:
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Пафос: +11.8% (11.0% inflation-adjusted)
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Фамагуста: +11.1% (10.3% inflation-adjusted)
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Никосия: Slowest growth at +2.7% (2.0% inflation-adjusted)
This trend also reflects in average sale prices based on 2024 data from Landbank Analytics:
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New apartments: €281,000
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New houses: €461,000
Limassol and Paphos continue to command the highest prices island-wide.
Buyers Shift to Budget-Friendly Options
A noticeable decline in high-value home sales suggests a pivot toward more affordable properties — both among locals and international buyers.
Andreas Christophorides, CEO of Landbank Group, commented on this by highlighting regional nuances:
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Лимассол: Sky-high prices tied to foreign investment in luxury homes.
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Никосия: Market shaped by the financial realities of local buyers.
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Ларнака: Lower prices due to suburban expansion.
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Пафос: House prices rising, but apartment prices dipping — showing a tilt toward family homes.
What’s Next: Stabilization on the Horizon
Experts expect the market to stabilize as new housing supply increases, fueled by both heightened construction activity and small drops in building material costs. That supply could help ease upward price pressures.
Ask Wire, a local property intelligence firm, supports this outlook. CEO Pavlos Loizou pointed out that demand for apartments remains strong, despite headwinds like high interest rates and elevated construction expenses. The cooling effect is happening, but it’s selective, not sweeping.
External Pressures Still Loom
One wildcard in the mix? Global economic unpredictability. Escalating trade tensions and inflation could still influence Cyprus’s real estate trajectory especially through construction supply chains and pricing shocks.
Cyprus’s housing market is moving into a new phase. Prices are still on the rise, but with a more moderate pace. As supply grows and buyer behavior shifts, 2025 could bring a more stable and possibly more accessible housing landscape.
Source: Global Property Guide