26.04.2024
External reasons combined with the economic conditions of Cyprus are influencing both local and international demand in the local real estate sector, according to Michalis Tsangaridis, director of Delfi Partners , which noted that foreign investors continue to support the domestic market.
In a recent analysis, Tsangaridis noted that the market showed different trends in the first quarter of 2024, with Nicosia seeing an increase in property sales, Larnaca stagnating in terms of investment activity, and other regions experiencing a decline.
“The changes observed in the first quarter of 2024, with Nicosia continuing its upward trend, Larnaca holding back investment activity and the rest of the free area of Cyprus recording losses, if anything, set the tone for a year of increasing challenges,” he said.
These problems, he explained, are caused by, among other things, geopolitical instability, inflation and high interest rates.
Addressing the strength of the market, Tsangaridis said that “the fact that property sales documents filed in the first quarter of 2024 showed at least a marginal increase of 1% compared to the corresponding quarter of 2023 provides some encouraging signs.”
This demonstrates the ability of the Cyprus property market to withstand pressures and challenges. In particular, in Nicosia the first quarter ended with sales growth of 42% (813 transactions). Larnaca also saw a 6% increase in sales (723 transactions).
“On the contrary, the strong decline recorded in Limassol, the most systemic from a banking point of view, in the Cypriot real estate market, cannot go unnoticed,” Tsangaridis noted .
Additionally, in Paphos, sales fell by 11%. The largest decline was observed in the Famagusta region , where property sales fell by 16%.
