Cyprus Home Prices Cool Off in Late 2024
According to the latest Residential Property Price Index for Q4 2024 from the Cyprus Central Bank (CCB), the growth in residential real estate values slowed to its mildest rate in ten quarters. The cooling trend is expected to continue, driven by rising housing supply, moderating foreign interest, and a potential stabilization of construction material costs.
During Q4 2024, the overall House Price Index (covering both apartments and houses) inched up by just 0.4% quarter-on-quarter, compared to a 0.9% rise in the previous quarter. Annually, the index posted a 4.5% increase—its smallest year-on-year climb since Q2 2022—down from 6.5% in Q3.
Apartment prices advanced by 5.5% year-on-year (versus 8.8% in Q3), while house prices moved up 4.6% (down from 6.0%). Quarter-on-quarter, apartments edged up merely 0.1%, and houses gained 0.5%.
Price gains diverged among districts, with Paphos as the standout, recording a 13.4% year-on-year increase in overall housing values. Other areas experienced slower growth:
House prices soared 14.7% in Paphos but rose just 5.1% in Limassol and 7.8% in Famagusta. Meanwhile, Nicosia dipped by 0.4% and Larnaca held steady at 6.1%.
Apartments saw slowed but still positive year-on-year increases: 2.6% in Nicosia, 5.5% in Limassol, 8.7% in Larnaca, 12.1% in Paphos, and 14.2% in Famagusta.
Property sale contracts rose 2.8% year-on-year in Q4 to 4,163, based on Department of Lands and Surveys data. Both domestic and international transactions contributed to the uptick, with local sales up 3.2% and foreign deals up 2.2%.
Limassol accounted for 1,341 transactions, followed by Nicosia (934), Larnaca (859), Paphos (825), and Famagusta (204). In Paphos, overseas buyers represented 67% of the total, contrasting with most districts where Cypriot buyers prevailed.
New housing loans tallied a 7.6% year-on-year rise, reaching €290.1 million from €269.6 million in Q4 2023. Though the average mortgage rate dipped to 4.62%, interest costs remain above the five-year norm. The CCB’s January 2025 Bank Lending Survey also indicates stable lending criteria and a steady appetite for housing loans.
From January through September 2024, building permits for residential projects climbed 10%—from 7,999 to 8,801 units. This expansion in supply reflects earlier demand surges and was further spurred by the transfer of permit issuance to District Local Authorities in June 2024, as well as a notable rise in apartment block permits. Larnaca and Limassol registered the highest permit increases, suggesting potential future inventory growth.
The European Commission’s Economic Sentiment Surveys revealed a drop in expectations for property price hikes—from 68 in December 2023 to 25.4 in December 2024—as the market adjusts to more moderate forecasts. Meanwhile, construction material costs rose a tempered 0.2% year-on-year, according to the Cyprus Statistical Service, hinting at stabilization despite ongoing global pressures.
If you’re interested in exploring additional property options, consider visiting these listings of Cheap Apartments for Sale Cyprus or check out different Plots of Land for Sale. With demand staying resilient and supply on the rise, savvy buyers can still find valuable opportunities in Cyprus’s property market.
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