Cypriots' influence on the real estate market

Despite strong growth in Cyprus' real estate market during the first eight months of 2024, professionals in the industry note that the benefits are not being distributed evenly. Key trends in buyer preferences and the factors influencing purchasing decisions have also been observed.

According to sales document data submitted to the Land Registry, a total of 10,345 sales documents were recorded in the first eight months of 2024, compared to 10,183 during the same period in 2023, which shows a modest increase of 1.6%.

Growth in numbers, but challenges for smaller players

While the overall results seem encouraging, small real estate businesses are not experiencing the same degree of success, according to real estate appraiser and Association of Realtors President Andreas Kaouris. "While thousands of properties are sold each month, the majority of transactions are handled by large real estate agencies and developers who often deal directly with clients", he stated.

Smaller agencies, he noted, deal mostly with the sale of modest houses and apartments, usually aimed at British Cypriots and Cypriot buyers, and to a lesser degree, land plots. Additionally, Kaouris pointed out that young couples are especially looking for apartments that cost about €170,000. However, properties priced over €200,000 are more challenging to sell due to difficulties in securing loans and pressure from banks on buyers facing financial difficulties.

Changing trends among foreign buyers

Kaouris also talked about the preferences of foreign buyers, bringing out that while demand from Russian buyers has been gradually decreasing month after month, interest from Israeli buyers continues to be solid.

Nicosia's unique real estate footprint

In Nicosia, the market shows a distinct preference for detached houses, particularly among Cypriot buyers. This sets the capital apart from other cities, where apartments are typically more in demand. Young couples in Nicosia tend to purchase smaller homes on half-plots or apartments priced up to €300,000, while larger homes in the €280,000 to €400,000 range are also sought after.

For properties priced between €200,000 and €270,000, young couples are the main buyers. On the other hand, foreign buyers tend to gravitate towards larger houses, typically around 150 to 160 square meters, with prices ranging from €270,000 to €300,000.

In summary, while the real estate market in Cyprus continues to grow, the divide between large and small agencies persists, and the types of properties in demand vary by buyer demographics and location.