The real estate market in Cyprus is the most important and relevant sector of the island’s economy, attracting the attention of both residents and foreign investors.
The demand for local real estate is due to the country’s stable political and legal system. However, this is not the only reason. There is a government program to obtain permanent residency status through investments.
Additionally, the island is one of the popular tourist destinations, thanks to its pleasant climate, high-quality infrastructure, cultural and historical attractions, and beautiful beaches.
Let’s explore housing market predictions 2024 and analyze the key factors influencing this sector.
Housing Market Forecast in Cyprus: What to Expect in 2024?
The real estate market in Cyprus is expected to continue its growth in 2024. According to Statista’s forecast, its value will reach $116.35 billion.
Source: Statista
Thanks to the government’s efforts to attract foreign investments and improve infrastructure, the market will likely remain attractive for local and international buyers. However, there are some anticipated changes that may impact the dynamics.
Increase in the Quantity of Real Estate
As demand continues to rise, developers are going to respond by increasing the number of residential and commercial projects. The growth in supply will contribute to home prices dropping and provide buyers with more opportunities to choose from.
Heightened Focus On Ecology
With a growing awareness of environmental issues, there is an increasing demand for properties built using green technologies and methods. Developers are expected to pay special attention to the ecological aspects of their projects, attracting buyers who adhere to sustainable lifestyle principles.
Technological Advancements
Virtual reality and 3D tours are becoming increasingly common in the housing sector, allowing buyers to remotely inspect properties. This technology can streamline the decision-making process of international buyers, as they can virtually tour properties without being physically present.
The Real Estate to Watch in 2024
Cyprus offers a diverse range of housing, allowing investors to choose properties that align with their budget and objectives in both the primary and secondary markets.
Residential
Residential real estate is expected to dominate, with a projected market volume of $89,58 billion in 2024.
The most sought-after residential properties on the island are apartments, villas, and townhouses. Investments in these properties typically yield returns relatively quickly.
Purchasing residential property in Cyprus is a promising investment with the following advantages:
- Acquiring property in regions with high rent demand can provide a stable and long-term income from rental payments.
- If you plan to move to Cyprus to live, buying your own property is also an optimal investment.
Commercial
The Greek part of the island has many business centers, offices, shops, and other properties attractive to investors. Investments in commercial real estate in Cyprus are considered one of the most lucrative.
This is due to the constant increase in international companies that have decided to relocate their businesses to the island. Thus, owning Cypriot commercial real estate can become a long-term and stable source of income.
Touristic
Touristic housing is also a lucrative investment direction. The tourist flow to the island has grown every year after the pandemic. The number of tourists arriving in June 2023 reached 456,985 compared to 372,324 in June 2022, an increase of 22.7%.
The island continues to actively develop its tourist infrastructure, attracting travelers and creating a favorable environment for the hotel industry. Considering the dynamic growth of tourism, investments in hotels or hotel rooms on the island will yield significant profits.
Will House Prices Go Down in 2024?
House prices dropping in Cyprus in 2024 are not expected, and rental rates are unlikely to decrease as well. However, there are cities where we may observe a slight increase.
In Nicosia, the prices of apartments and houses will remain in the range of €3,000 to €4,500 per square meter, consistent with the levels in 2023 and the preceding two years. In the Famagusta region, the average price is projected to remain at the same level as in 2023, ranging from €3,000 to €4,000 per square meter.
In Limassol, apartments and houses will be sold in 2024 at prices ranging from €4,000 to €5,500 per square meter, similar to the rates in 2023. Experts expect that the sales prices for apartments and houses will grow in Larnaca and Paphos cities. It is estimated that in Larnaca, the sale price per square meter in 2024 will range from €3,500 to €4,000, compared to €2,500 to €3,500 in 2023.
In Paphos, prices in 2024 will range from €2,500 to €3,500 per square meter, compared to €2,000 to €3,000 per square meter in 2023.
Explore the current residential and commercial real estate offerings and prices in our catalog.
Investment Potential and Future Perspectives
The Cyprus real estate market in 2024 is going to continue to hold significant appeal for investors. With political stability, improved economic indicators, and the development of tourist infrastructure, the market is expected to continue its growth.
Will housing prices drop in 2024? The prices will remain unchanged, with some cities experiencing minor growth.
Overall, the island remains an attractive destination to invest in residential and commercial real estate.
Interested in buying property in Cyprus? You’ll find many choices on our site, from apartments in tourist areas to villas on the coast. The catalog provides detailed information for each property, along with search filters, allowing you to quickly and easily find housing that meets your needs and preferences.
Discover the opportunity to become the owner of exclusive modern real estate in the heart of Cyprus with Anisad!
