Property prices in Cyprus remain high despite signs of stabilization, with increased demand, particularly from foreign buyers, making home ownership out of reach for many locals and pushing rental costs higher, according to market analysts.
Marinos Kineyirou, president of the Cyprus Real Estate Registration Council, highlighted that while the market has shown resilience, unresolved structural challenges could lead to further hikes in property prices.
Recent data from the land registry for the first nine months of 2024 painted a mixed picture: transaction volumes and values declined, but the number of sales documents rose. Gains in Nicosia and Larnaca helped offset losses in Paphos and Limassol, while Famagusta bounced back with a modest 1% growth.
Polys Kourousides, president of the Property Valuers Association, warned that strong demand, particularly from foreign buyers who now account for half of the market, will likely persist through 2025. He pointed to delays in issuing building permits as a critical factor driving up housing costs.
“Without increasing supply, the housing crisis cannot be resolved,” Kourousides stressed, arguing that current government measures, such as the “renovate-rent” scheme, are inadequate. He also cautioned that geopolitical factors, such as the Israel-Hamas conflict, could further intensify demand from high-purchasing-power Israeli buyers.
Permit delays are causing developers to scale back, with some considering lay-offs due to stalled projects, Kourousides added. He proposed public-private partnerships as a potential solution, suggesting that the government could allocate state-owned land to developers to construct affordable rental housing.
“If the issuance of building permits continues to lag in 2025 and 2026, the influx of foreign buyers will absorb any new supply, leaving Cypriots in a difficult position,” Kourousides warned.
