In the latest property data, the real estate landscape in Cyprus paints a picture of continuous growth, particularly in the apartment sector. However, a closer look reveals a potential plateau in the high-end market, specifically for properties priced at €500,000 and above.
During the third quarter of 2023, house prices in Cyprus maintained an upward trajectory, notably for apartments. Valuers anticipate a shift in the upcoming six months, foreseeing a decrease in the prices of predominantly expensive properties. Pavlos Loizou, CEO of Ask Wire, sheds light on this evolving scenario in an exclusive conversation with “K.”
Loizou highlights a dynamic property market in Limassol province, citing a surge in transactions for apartments across various price ranges until mid-2022. However, he notes a subsequent fluctuation with “peaks and troughs” from mid-2022 onwards. The most significant impact is observed in higher-priced apartments, witnessing the most substantial relative decline.
Analysing transaction data from January 2021 to September 2023, Loizou emphasizes changing consumer preferences. Initially, apartments below €300,000 dominated the market, commanding around 80% of transactions. Over time, this segment’s share decreased to 60%, while the price category from €300,000 to €500,000 experienced significant growth, doubling its market share.
A general upward trend in sales persisted until mid-2022, followed by fluctuations and a marked decrease in volume across the market from June 2023. Notably, higher-priced apartments bore the brunt of this decline.
Loizou suggests a shift in the composition of transactions, with properties valued higher than €300,000 constituting about 80% of the volume in January 2021. By September 2023, this figure decreased to approximately 60%. Surprisingly, the most substantial increase in transaction volume occurred in properties worth €300,000 to €500,000, rising from 10% of transactions in January 2021 to constituting 25% of the total transaction volume.
Discussing property prices, Loizou anticipates reductions for properties above €500,000 in the next six months. When asked about reductions in more “normal” property prices, he suggests “keeping a smaller basket,” indicating possible small decreases, around 3%, for these properties. Loizou concludes by noting that prices of expensive properties are likely to fall due to increased supply in this category and a decrease in foreign interest.
As the real estate market in Cyprus undergoes these shifts, the coming months will be crucial in understanding the evolving dynamics, especially for high-end properties.
First published in Knews, the English edition of Kathimerini Cyprus
