Cyprus property market bruised by inflation and geopolitical conflicts, council president says

Cyprus witnessed a notable slowdown in property transactions during the first quarter of 2024, reflecting the cumulative challenges faced by the real estate sector, including inflationary pressures and high interest rates, according to a report released on Monday by the Cyprus Real Estate Agents Registration Council.

According to the council’s quarterly report, which regularly provides an update on the local property market, revealed that a total of 4,543 property transfers, valued at €955.8 million, were completed during the period.

In addition, 3,597 sales documents were deposited, providing a snapshot of the volume of transactions in progress.

Moreover, on a quarterly basis, there was a significant decrease of 18.6 per cent in the volume and 22.9 per cent in the value of property transfers.

When comparing the first quarter of 2024 to the fourth quarter of 2023, there was an 11.1 per cent decrease in the volume of sales documents deposited.

However, on an annual basis, there was a 16.5 per cent increase in the volume of property transfers and an 8.7 per cent increase in value.

Additionally, the number of sales documents deposited in the first quarter of 2024, which stood at 3,597 in total, saw a marginal increase of 1 per cent compared to the same period in 2023, when they amounted to 3,574.

Breaking down the data by region, the report highlighted that Nicosia recorded the highest number of property transfers, totalling 1,245, with a combined value of €198.4 million.

Limassol followed closely with 1,202 transfers amounting to €323.8 million, while Paphos, Larnaca, and Famagusta registered 993, 860, and 243 transfers, respectively.

In terms of sales documents deposited, Limassol led with 1,123 submissions in the first quarter of 2024, followed by Nicosia with 813.

Furthermore, Paphos (774) and Larnaca (723) closely trailed the two districts mentioned above, with Famagusta coming in fifth place with 164 documents being deposited.

Marinos Kyneyirou, president of the Cyprus Real Estate Agents Registration Council, commented on the concerning trend, underlining the effects of both internal and external factors on the property market.

“The impact of inflation and geopolitical turmoil on the market is now evident. The real estate sector serves as a mirror of the Cypriot economy, being one of its key pillars,” he stated.

“The first quarter data of 2024, compared to the previous quarter, is very worrying and should alert everyone,” he added.

“Unfortunately, our forecasts are starting to materialise, and actions need to be taken now, both by property owners and the government, to improve the situation,” Kineyirou concluded.

Moreover, the Cyprus Real Estate Agents Registration Council noted that it “has been actively working towards enhancing transparency and information dissemination by providing licensed real estate agents access to comparative property sales data from the Department of Lands and Surveys”.

“Through its ongoing efforts”, the statement continued, the council “aims to ensure continuous updates for stakeholders on the Cyprus real estate market’s trajectory”.