New home prices: houses and apartments

Nigel Howarth
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New home prices: houses and apartments

Last week, Landbank Analytics released an in-depth report on the number and value of new homes purchased in Cyprus during the first nine months of 2024.

In that period, 5,253 contracts of sale for new residential units were deposited at Land Registry offices across the Republic, marking a 19.2% increase compared to the same period in 2023. Furthermore, the total value of new home purchases (including apartments and houses) rose by 25%, exceeding €1.9 billion.

Using Landbank Analytics‘ analysis of new home sales, I have calculated the average price of new houses and apartments in each of the island’s five districts.

New home (house) prices

The most expensive new houses were in Limassol, at an average price of €696.2k Paphos followed Limassol with new houses costing an average of €615.6k. In third place Larnaca (€336.6k), fourth Famagusta (€331.4k) and finally Nicosia (€309.3k.)

New apartment prices

The most expensive new apartments were also in Limassol, at an average price of €558.2k. Paphos followed Limassol again with new apartments costing an average of €332.6k. In third place Nicosia (€198.4k), fourth Larnaca (€195.8k) and finally Famagusta (€162.8k).

The average price of new houses across the Republic was €457.8k and apartments €289.6k.

These new homes will include both permanent homes and holiday homes. As holiday houses and holiday apartments are significantly smaller than permanent family homes, they will be less expensive.

(According to Eurostat data from 2023 Cyprus has the largest houses in the EU at 149.7 sq.m. The latest available figures for the UK, which were published in 2009, show that the UK had the smallest dwellings in the EU at just 87.0 sq.m.)

Property sales rise, transfers fall

Nigel Howarth
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Property sales rise, transfers fall

Fewer property transfers but more sale contracts were recorded in the third quarter of 2024, with growth driven primarily by Nicosia and Larnaca, helping to offset losses in Paphos and Limassol.

Data analysed by the Real Estate Agents Registration Council highlights the challenges and outlook of the real estate market during the first nine months of 2024.

According to figures from the Department of Lands and Surveys, processed and published in the Council’s quarterly “Real Estate Market Bulletin,” 14,074 transfers valued at €3.1 billion were completed between January and September 2024, with 11,634 sale contracts deposited at Land Registry offices..

The third quarter of 2024 saw a 2.7% decrease in the number of property transfers and a 5.5% fall in their value compared to the second quarter with 4,700 transfers worth €1.05 billion taking place, while the number of sale contracts (4,081) increased by 3.1% compared to the second quarter’s 3,956.

In comparison to the same period in 2023, the first nine months of 2024 saw a 6.3% rise in transfer volume and a 1.2% increase in transaction value. Additionally, the volume of sale contracts filed in 2024 (11,634) rose marginally by 1% compared to the same period in 2023 (11,519).

Transfers & sales by district

In Nicosia, there were 3,925 transfers with a total value of €693.2 million. Limassol saw 3,736 transfers worth €1.06 billion, Paphos recorded 2,836 transfers valued at €746.6 million, Larnaca had 2,685 transfers worth €455.5 million, and Famagusta had 892 transfers totalling €164.7 million.

In terms of sale contracts, Limassol had the highest volume (3,691) during the first nine months of 2024, followed by Nicosia (2,593). Larnaca (2,497) and Paphos (2,282) were close behind, with Famagusta (571) completing the statistics for this period.

Compared to the same time in 2023, Nicosia recorded the highest annual growth (20%), followed by Larnaca (6%) and Famagusta (1%). However, Paphos saw a significant decline (-12%) along with Limassol (-4%).

The president of the Real Estate Agents Registration Council, Marinos Kinaigeirou, noted:

“The real estate market continues to show resilience, and we hope that the anticipated reduction in interest rates will soon boost local transactions.

“Comparing the third quarter with the second, we observe a decrease in both the volume and value of transfers, but a notable increase in sale contracts. This trend sustains our optimism for improved market conditions ahead. Growth in Nicosia, and later in Larnaca, compensates for the losses in Paphos and Limassol.

“It’s encouraging that Limassol and Paphos managed to limit their losses during the third quarter, while Famagusta, which had seen an 11% drop in sale contracts in the first half, ended the nine months with a 1% increase.

“Overall, the situation in 2024 looks better compared to the same period last year.”

The Council has also secured access for licensed real estate agents to comparative property sales data from the Department of Lands and Surveys, as part of its ongoing efforts to improve transparency and provide comprehensive information to both professionals and the public. The Council shares market data on a quarterly basis to keep stakeholders updated on Cyprus’ real estate trends.

Nine-month 2024 analysis

District Nicosia Limassol Paphos Larnaca Famagusta Total Cyprus
Transfers            
Volume 3925 3736 2836 2685 892 14074
Value €693.2M €1.06B €746.6M €455.5M €164.7M €3.1B
Sale Contracts            
Volume 2593 3691 2282 2497 571 11634

Sgt. Pepper & Cyprus Property News celebrate anniversary

Nigel Howarth
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Sgt. Pepper & Cyprus Property News celebrate anniversary

It was 20 years ago today Sgt. Pepper taught the band to play, and it was also 20 years ago today that Cyprus Property News got underway.

Since October 20, 2004 (and with a little help from my friends) more that 3,600 articles have appeared in Cyprus Property News charting the course of the island’s real estate market.

Over the past 20 years we’ve witnessed the impact of the 2007–2008 financial crisis and the impact of Cyprus’ home-grown economic crisis in 2012–2013. We’ve also witnessed numerous attempts by Government to resolve the multitude of issues faced by those buying property and improve consumer safety.

But has anything really changed significantly over the past 20 years?

Here’s the first article that appeared in Cyprus Property News on 20 October 2004:

Warning to Cyprus Home Buyers

It has come to my attention that everyone in Cyprus is now talking of property investment and what a great investment it is. A number of people honestly believe that the prices of houses/flats are still low and that they will continue to rise.

I am personally tired of hearing this nonsense and feel sorry for the poor British souls ‘investing’ their life savings thinking they have just purchased a bargain. British property buyers please note:

  • The possibilities of obtaining a title to your property is very lengthy and time consuming and in most cases a few years after you actually purchase the property.
  • Rent in Cyprus is very low therefore do not expect to purchase a property and pay off your mortgage instalments from the rent.
  • Do you think it will be easy selling your used house with all the brand new houses being sold by developers?
  • Are you aware that you are paying a high amount of commission to the person introducing you to the developer? This commission ranges between 5 –15% which would be deducted from the price of your property if you walked into the developer’s office yourself straight off the street. By the way, a high number of these ‘English realtors’ with the fancy English company names are taking 10 –15% from the developers so do not feel so rest assured that they are on your side.
  • Your legal fees also range between £1000 and £2000 per house. Are you aware that these lawyers are all mates of the developers? Are they actually acting in your best interest? Oh, and by the way they use the same agreement for everyone just change the name and dates (now that’s a great way to make a quick 1,000).
  • Has anyone questioned the quality of the houses they are purchasing? Do you know what employees they are using?
  • Do you think the developers’ architects/engineers ever visit the sites to ensure for quality and safety? (Just last week in Nicosia 2 employees were killed when a concrete staircase fell on them). Most developers are bringing in cheap labour (Turkish Cypriots) from the Northern part of Cyprus.
  • Has anyone looked into the pricing of houses? Most developers will charge anything from £1.000 to £2.500 per sq.m. Are you aware that one can buy a plot of land of 600 sq.m in the range of £20.000 to £40.000 and then build for £350 to £500 per sq.m? Now work that out and see how much houses are sold for.
  • Where is all the extra money going? Roads for the project, electricity, pavements, licenses, COMMISSIONS and PROFIT.

I know a lot of letters will come in probably from developers, real estate agents, etc, condemning my letter and justifying what I mentioned above in an attempt to defend themselves, but my above points are facts and we all know it.

The sooner we face these facts and try and improve the industry the better for all of us.

Instead, I believe things will remain as they are, prices will inflate a little more and soon we will witness the bubble bursting just as we have seen with the Cyprus Stock Exchange.

It’s funny how convincing people can be insisting that housing prices in Cyprus will continue increasing and that they will be no decrease just stabilisation… please wake up and smell the coffee.

V. Demetriou,
Ayia Napa

Construction material prices fell slightly in September

Nigel Howarth
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Construction material prices fell slightly in September

The Price Index of Construction Materials for September 2024 reached 117,27 units (base year 2021=100), recording a decrease of 0.35% compared to the previous month according to the Cyprus Statistical Service.

byulding-price-indexCompared to the same month of the previous year, the index recorded a marginal decrease of 0.02%. By main construction commodity category, decreases were recorded in metallic products (-2.85%) whereas increases were observed in electromechanical products (3.62%), products of wood, insulation materials, chemicals and plastics (1.06%), mineral products (0.59%) and minerals (0.33%).

Cyprus construction material prices

For the period January-September 2024, the index recorded a decrease of 1.14% compared to the corresponding period of 2023.

Mortgages in Cyprus continue despite high interest rates & prices

Nigel Howarth
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Mortgages in Cyprus continue despite high interest rates & prices

According the Department of Land and Surveys, mortgages were granted for 7,212 properties worth €1.94 billion during the January-August period, compared to 7,313 properties worth €1.98 billion during the same period last year.

This represents a 1.38% decrease in the number of properties mortgaged, while the value of the properties decreased by 2.16%.

Mortgages by month

Based on information from the Department of Land and Surveys, number of mortgages peaked in June, and were at their lowest in January:

  • In January, 768 properties were mortgaged, worth €146,547,089.
  • In February, 860 properties were mortgaged, worth €229,724,144.
  • In March, 910 properties were mortgaged, worth €406,483,726.
  • In April, 922 properties were mortgaged, worth €229,622,355.
  • In May, 885 properties were mortgaged, worth €221,071,538.
  • In June, 1,107 properties were mortgaged, worth €313,260,279.
  • In July, 959 properties were mortgaged, worth €211,445,209.
  • In August, 801 properties were mortgaged, worth €180,514,148.

Mortgaged properties by districtinter

According to the Department of Land and Surveys, the highest number of properties mortgaged in the first eight months of 2024 was in Nicosia, while the lowest was in Famagusta:

  • In Nicosia, 2,775 properties were mortgaged, worth €544,370,045.
  • In Limassol, 1,935 properties were mortgaged, worth €615,197,139.
  • In Larnaca, 1,148 properties were mortgaged, worth €252,295,113.
  • In Paphos, 910 properties were mortgaged, worth €334,845,812.
  • In Famagusta, 444 properties were mortgaged, worth €183,514,148.

 

 

New home sales exceed €1.9 billion in 2024

Editorial
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New home sales exceed €1.9 billion in 2024

The property market has witnessed a significant increase in new apartment sales during the first nine months of 2024, according to a comprehensive analysis by Landbank Analytics.

The report, based on sale documents submitted to the Department of Lands and Surveys from January to September 2024, reveals a 19.2% year-on-year increase in new residential property sales, totalling 5,253 units.

The total value of new home sales surpassed €1.9 billion, marking a 25% increase compared to the same period in 2023.

All districts in the government-controlled areas of Cyprus reported growth in both volume and value.

New apartment sales reached 4,335 units, with a total value of €1.45 billion, representing a 27.7% increase in volume and a 38.1% rise in value year-on-year.

In contrast, new house sales declined by 9.2% in volume and 2.8% in value, with 918 units sold for a total of 457.2 million euros.

Nicosia district recorded substantial increases in both volume (25.2%) and value (20.6%) of new residential property sales.

Limassol saw a 17% increase in apartment sales volume and a 41% rise in value, despite an 18.5% decrease in new house sales.

Larnaca, Paphos, and the free Famagusta area also experienced growth in the new apartment market, with varying trends in house sales across these regions.

Andreas Christoforides, CEO of Landbank Group, said, “The upward trend in the new apartment market is linked to prevailing economic conditions related to housing costs and loan accessibility. Consequently, young couples are opting for new apartments over houses due to cost and sustainability factors”.

He added that the decline in new house sales, particularly in Paphos, is primarily attributed to foreign buyers of luxury homes.

© In-Cyprus.com

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