LOCAL EXPERTISE WITH A GLOBAL PERSPECTIVE
Dear friends,
We continue to keep you informed about changes in the Cypriot residential real estate market. The fourth quarter of 2024 marked a steady growth in the mid- and high-range real estate segment. For the purpose of this report we pay specific attention to houses priced from €500k and apartments from €200k. Despite ongoing geopolitical risks and high interest rates, positive trends are observed in the demand for quality and expensive projects.
Attention to the mid- and high-range real estate segment continues to grow, as evidenced by transaction volumes and prices. Let's take a closer look at the key points and compare them with the results of the third quarter.
Trends and statistics by region
Limassol:
This region remains the leader in mid- and high-range real estate housing purchases. In the Q4 of 2024, 864 transactions were concluded, of which 54% were mid- and high-range properties.
Pafos:
Pafos also shows interest in mid- and high-range real estate. In the fourth quarter, 770 transactions were registered, of which 22% (172 properties) were mid- and high-range real estate. The region also notes an increase in prices for apartments priced above €200k, confirmed by a 2.8% increase in median prices compared to the fourth quarter of 2023.
Nicosia:
In the capital of Cyprus, interest in mid- and high-range real estate is less pronounced but remains stable. In the fourth quarter of 2024, 914 transactions were concluded, of which 17% were mid- and high-range properties. Apartments continue to be the most sought-after housing format in Nicosia.
Larnaca:
Larnaca remains the most affordable market among coastal cities, but the mid- and high-range segment here is developing
more slowly. Of 727 transactions, only 17% concerned mid- and high-range housing, with the main interest in apartments – they accounted for 14% of all mid- and high-range sales in Cyprus.
Factors attracting investors
Improvement of the international credit rating:
In November 2024, Moody's rating agency raised Cyprus' credit rating to A3, the first time since 2011. This reflects a significant improvement in the country's financial indicators and a reduction in public debt.
Record growth in tourist flow:
In 2024, Cyprus welcomed a record number of tourists, positively impacting the economy and increasing interest in real estate investments, especially in the short-term rental segment. Stable political environment and EU membership: Cyprus continues to benefit from a stable political environment and EU membership, providing additional guarantees for investors.
Key conclusion: is it worth investing in mid- and high-range real estate in Cyprus?
Despite some price corrections in the average and affordable segments, the mid- and high-range real estate market demonstrates steady growth. Considering the improvement in the credit rating and the growth in tourist flow, further increased interest in expensive real estate can be expected.
Thus, despite general economic challenges, the mid- and highrange real estate market in Cyprus continues to show positive results, and in the coming years, an increase in interest in highquality projects is expected.
With gratitude,
Anastasia Yianni Chief Executive Officer Cyprus Sotheby’s International Realty
ABOUT INSIGHTS:
Transaction data are provided by Cyprus’ Department of Lands and Surveys, which records all transfers of ownership and registered contracts of sale (including property description, purchase price, date, etc). The data is processed in order to classify each transaction (as some properties are under construction, their description is not exact, or they form part of bigger projects) and are categorised by property type.
The analysis covers the entire area controlled by the Republic of Cyprus, excludes properties sold at auction (foreclosure), and references property values based on the amount declared by the purchaser at the time of the transaction (which excludes any VAT, transfer fees, or other duties levied).
THE REAL ESTATE MARKET
IN CYPRUS: KEY HIGHLIGHTS
The year 2024 has been a period of restructuring and adaptation for the Cypriot real estate market. Following the unprecedented growth in 2022–2023, driven by an influx of foreign buyers and displaced persons, the market has naturally corrected itself. However, despite a decline in transaction volumes, the market continues to show resilience, and certain regions are exhibiting positive trends.
TRANSACTION VOLUME DYNAMICS
A NATURAL ADJUSTMENT AFTER RECORD YEARS
In Q4 2024, the total number of transactions declined by 7.4% for houses (to below 1.1K) and by 4.7% for apartments (to below 2.4K). On a year-on-year basis (Q4 2023 – Q4 2024), transaction volumes fell by 14.3% for houses and 10.8% for apartments.
KEY REASONS:
• High Base Effect. In 2022–2023, the Cypriot real estate market experienced a boom due to an influx of migrants, investors, and relocating professionals. In 2024, the market is returning to a more balanced level.
• Rising Interest Rates. Expensive mortgages are limiting buyers' purchasing power, particularly in the mid- and high-range segment.
• Geopolitical Instability. Conflicts and sanctions, particularly those affecting Russian capital flows, have impacted investment activity, especially in the mid- and high-range segment. Additionally, they have contributed to rising construction costs.
Despite the drop in transaction numbers, demand for mid- and high-range real estate remains stable. For example, in Pafos, the number of mid- and high-range apartment transactions increased by 7.7% year-on-year (from 104 to 112), while Limassol accounted for 54% of all mid- and high-range transactions in the country.
PRICES
MODERATE CORRECTION BUT GROWTH IN THE MID- AND HIGH-RANGE SEGMENT
In Q4 2024, compared to Q3 2024, median house prices decreased by 7.2% (to €250K), while apartment prices fell by 8.2% (to €161K). However, year-on-year declines were milder: 2% for houses and just 0.4% for apartments, indicating price stabilization following peak levels.
MEANWHILE, THE MID- AND HIGH-RANGE SEGMENT HAS SHOWN POSITIVE MOMENTUM:
• The median price of mid- and high-range houses (€500K+) increased by 5.5% in Q4 2024 (to €770K) and by 1.7% year-on-year.
• Mid- and high-range apartment prices (€200K+) remained stable at €300K throughout the quarter and the year.
Thus, while the mass market has corrected, the mid- and high-range segment has maintained growth, reinforcing strong demand from foreign investors.
REGIONAL TRENDS: WHERE THE MARKET REMAINS STRONG
• Limassol remains the leader in mid- and high-range real estate. In Q4 2024, the city recorded 864 transactions, 54% of which were in the mid- and high-range accounting for 64% of all such deals nationwide. Strong demand is supported by ongoing infrastructure developments and active foreign capital.
• Pafos is experiencing increasing interest in mid- and high-range apartments. The total number of transactions in Q4 reached 770, with 22% (172 properties) classified as mid- and high-range. Additionally, the median price for mid- and high-range apartments (€200K+) increased by 2.8% year-on-year. Interest in real estate remains stable, particularly among investors looking for rental properties.
• Nicosia has shown stable demand despite the overall market correction. In Q4 2024, there were 914 transactions, with 17% in the mid- and high-range segment. Apartments remain the most sought-after property type in the €200K+ segment, despite a 3.7% price drop in mid- and highrange properties.
• Larnaca continues to grow as an affordable coastal market. In Q4, the city recorded 727 transactions, with 17% involving mid- and high-range properties. The median price of mid- and high-range houses (€500K+) increased by 8.2% (to €822K), whereas mid- and high-range apartments saw a 4.7% decline.
• Famagusta remains a region with limited demand for mid- and high-range real estate (houses over €500K and apartments over €200K).
• In Q4 2024, Famagusta recorded 172 transactions, with only 8% (13 properties) classified as mid- and high-range. Demand for mid- and high-range properties remains low, accounting for just 4% of all mid- and high-range segment houses and 1% of all mid- and high-range segment
apartments sold in Cyprus. Nevertheless, mid- and high-range house prices in the region have remained stable, indicating continued interest in this niche market.
FACTORS SUPPORTING THE MARKET IN 2025
• Government Tax Incentives
Cyprus remains appealing to investors due to low taxes and residency programs
• Strong Infrastructure Development
New projects in Limassol, Larnaca, and Pafos continue to attract capital
• Robust Rental Market
Demand for both long-term and short-term rentals supports investment liquidity.
Despite the decline in transaction volumes, the market is not showing signs of a downturn. On the contrary, price stabilization and the resilience of the mid- and high-range segment indicate that Cyprus remains attractive to foreign buyers.
RESIDENTIAL PROPERTY SALES DISTRIBUTION
PER REGION IN Q4 2024
CYPRUS
Limassol Pafos Larnaca Nicosia Famagusta
LIMASSOL
Limassol is the business capital of Cyprus and a city of skyscrapers. Relocated international companies are the driving force behind the constant real estate growth in the city.
Residential transactions totalled 864 in Q4 2024, of which 54% (463 properties) were of the mid- and high-range segment of the market.
Mid- and high-range residential properties are of particularly high demand in Limassol, indicated by the significant percentage of houses (59 properties, 43% of the total for Cyprus) and apartments (504 properties, 64% of the total for Cyprus) transacted over the past quarter.
Since Q4 2023, transaction value of residential properties totalled €2bln, of which €1.35bln (67%) was for the midand high-range end of the market. It is worth noting that €1bln are related to apartments, as this is the main midand high-range product of the district.
The median transaction price for mid- and high-range houses was €842k and €315k for apartments in Q4 2024. Compared to Q4 2023, median prices of mid- and highrange houses increased by 5.2% and decreased by 1.6% for apartments.
KEY INDICATORS
• There have been 28,739 transactions, 9,337 of houses and 19,402 of apartments. Of these, 12,189 (42%) were at the mid- and high-range end of the market.
• Total transaction value for residential properties stood at €11.36bln of which €8.38bln (74%) was for the mid- and high-range end of the market.
VOLUME AND MEDIAN PRICES
OF MID- AND HIGH-RANGE HOUSES AND APARTMENTS
TRANSACTIONS’ PRICE DISTRIBUTION
• The overall breakdown of residential transactions across the market was 83% of houses above €500k and 46% of apartments above €200k. This apportionment has remained broadly stable throughout, indicating the attractiveness of the mid- and high-range segment of the market (particularly for apartments). NUMBER
PAFOS
Pafos is the cultural capital of the island, a city of villas and low-rise buildings. It has traditionally been popular with foreign buyers.
Residential transactions totalled 770 in Q4 2024, of which 22% (172 properties) were of the mid- and high-range segment of the market.
Mid- and high-range residential properties are of particularly high demand in Pafos especially houses, indicated by the significant percentage of houses (60 properties, 44% of the total for Cyprus) and apartments (112 properties, 14% of the total for Cyprus) transacted over the past quarter.
Since Q4 2023, transaction value of residential properties totalled €1.038bln, of which €559m (54%) was for the mid- and high-range end of the market. It's worth noting that €321m related to houses, as this in the main mid- and high-range product of the district.
The median transaction price for mid- and high-range houses was €680k and €309k for apartments in Q4 2024. Compared to Q4 2023, median prices of houses decreased by 2.7%, whereas median prices for apartments have increased by 2.8% .
KEY INDICATORS
2024
Mid- and highrange
SINCE
• There have been 22,232 transactions, 10,535 of houses and 11,697 of apartments. Of these, 3,928 (18%) were at the mid- and high-range end of the market showing the district’s appeal as a destination for more affluent buyers.
• Total transaction value for residential properties stood at €5.9bln of which €3bln (51%) was for the mid- and high-range end of the market.
• The overall breakdown of residential transactions across the market was 82% of houses above €500k, same for apartments above €200k. This apportionment has remained broadly stable throughout, indicating the attractiveness of the mid- and high-range segment of the market (particularly for houses).
VOLUME AND MEDIAN PRICES
OF MID- AND HIGH-RANGE HOUSES AND APARTMENTS
Transaction Volume of > € 200k Apartments
Transaction Volume of > € 500k Houses
Median Prices of > € 200k Apartments
Median Prices of > € 500k Houses
TRANSACTIONS’ PRICE DISTRIBUTION
NICOSIA
Nicosia, the capital of Cyprus, is a unique and attractive place. Commercial and long-term rental properties drive the market here.
Residential transactions totalled 914 in Q4 2024, of which 17% (159 properties) were of the mid- and high-range segment of the market.
Mid- and high-range residential properties are of particularly medium demand in Nicosia, indicated by the percentage of houses (18 properties, 13% of the total for Cyprus) and apartments (141 properties, 18% of the total for Cyprus) transacted over the past quarter.
Since Q4 2023, transaction value of residential properties totalled €841m, of which €253m (30%) was for the midand high-range end of the market. It is worth noting that €186m related to apartments, as this is the main mid- and high-range product of the district.
The median transaction price for mid- and high-range houses was €717k and €260k for apartments in Q4 2024. Compared to Q4 2023, median prices decreased by 5% for houses and by 3.7% for apartments.
INDICATORS
• There have been 24,790 transactions, 6,545 of houses and 18,245 of apartments. Of these, 3,440 (14%) were at the mid- and high-range end of the market.
• Total transaction value for residential properties stood at €4.4bln of which €1.4bln (32%) was for the mid- and high-range end of the market.
• The overall breakdown of residential transactions across the market was 94% of houses above €500k and 83% of apartments above €200k. This apportionment has remained broadly stable throughout, indicating the attractiveness of the mid- and high-range segment of the market (particularly for apartments).
VOLUME AND MEDIAN PRICES
OF MID- AND HIGH-RANGE HOUSES AND APARTMENTS
TRANSACTIONS’ PRICE DISTRIBUTION SINCE
Transaction Volume of > € 200k Apartments
Transaction Volume of > € 500k Houses
Median Prices of > € 200k Apartments
Median Prices of > € 500k Houses
LARNACA
Larnaca is one of the oldest cities in Cyprus with lots of history and class, yet the recent years’ development gave it a modern sparkle, and the best is yet to come.
Residential transactions totalled 727 in Q4 2024, of which 17% (120 properties) were of the mid- and high-range segment of the market.
Mid- and high-range residential properties are considered to be of low demand in Larnaca, indicated by the percentage of houses (10 properties, 7% of the total for Cyprus) and apartments (110 properties, 14% of the total for Cyprus) transacted over the past quarter.
Since Q4 2023, transaction value of residential properties totalled €770m, of which €236m (31%) was for the midand high-range segment of the market. It is worth noting that €175m related to apartments, as this is the main midand high-range product of the district.
The median transaction price for mid- and high-range houses was €822k and for apartments €245k, in Q4 2024. Compared to Q4 2023, median prices of houses increased by 8.2% and decreased 4.7% for apartments. KEY INDICATORS
• There have been 19,782 transactions, 5,993 of houses and 13,789 of apartments. Of these, 2,273 (12%) were at the mid- and high-range end of the market.
• Total transaction value for residential properties stood at €3.4bln of which €1.08bln (32%) were for the mid- and high-range end of the market.
• The overall breakdown of residential transactions across the market was 94% of houses above €500k and 77% of apartments above €200k. This apportionment has remained broadly stable throughout, indicating the attractiveness of the mid- and high-range segment of the market (particularly for apartments).
VOLUME AND MEDIAN PRICES
OF MID- AND HIGH-RANGE HOUSES AND APARTMENTS
TRANSACTIONS’ PRICE DISTRIBUTION
Transaction Volume of > € 200k Apartments
Transaction Volume of > €
Houses
Median Prices of > € 200k Apartments
Median Prices of > € 500k Houses
FAMAGUSTA
The Eastern part of Cyprus is a famous tourist destination. With the vibrant Ayia Napa and quiet Protaras, this area offers mostly holiday oriented properties.
Residential transactions totalled 172 in Q4 2024, of which 8% (13 properties) were of the mid- and high-range segment of the market.
Mid- and high-range residential properties are of particularly low demand in Famagusta, indicated by the low percentage of houses (5 properties, only 4% of the total for Cyprus) and apartments (8 properties, only 1% of the total for Cyprus) transacted over the past quarter.
Since Q4 2023, transaction value of residential properties totalled €243m, of which €76m (31%) was for the midand high-range end of the market. It is worth noting that €41 and €34m related to houses and apartments respectively, as this shows the stability in the market of mid- and high-range in Famagusta.
The median transaction price for mid- and high-range houses was €775k and €232k for apartments in Q4 2024. Compared to Q4 2023, median prices of houses remained the same and for apartments have decreased by 2.3%.
KEY INDICATORS
Mid- and highrange €11m 13 €76m 124
Houses €8m 5 €41m 43
Apartments €3m 8 €34m 81
• There have been 6,705 transactions, 3,193 of houses and 3,512 of apartments. Of these, 738 (11%) were at the mid- and high-range end of the market.
• Total transaction value for residential properties stood at €1.6bln of which €654m (41%) was for the mid- and high-range end of the market.
• The overall breakdown of residential transactions across the market was 88% of houses above €500k and 90% of apartments above €200k. This apportionment has remained broadly stable throughout, indicating the attractiveness of the mid- and high-range segment of the market (particularly for houses).
VOLUME AND MEDIAN PRICES
OF MID- AND HIGH-RANGE HOUSES AND APARTMENTS
Transaction Volume of > € 200k Apartments
Houses
Median Prices of > € 200k Apartments
Median Prices of > €
Houses
PRICE DISTRIBUTION
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