The Cyprus real estate market continues to develop despite conflicting trends. On the one hand, the growth of foreign investment and the interest of international companies create prospects for development. On the other hand, it is becoming increasingly difficult for local residents to purchase housing due to high prices and increasing mortgage rates.
According to a report by Danos International Property Consultants and Valuers, the real estate market is expected to grow moderately over the next two years as high interest rates stabilize demand. Foreign investment is having a significant impact on the market, especially given the geopolitical instability in the region. However, rising construction costs and changes in legislation may create new challenges for developers.
Rising construction costs are driving up property prices, making it difficult for Cypriots to buy a home. As a result, two groups of buyers are emerging in the market: locals who face difficulties in buying, and foreign investors who see Cyprus as an attractive investment opportunity.
Strong demand for residential properties in Limassol, Paphos and Larnaca provides developers with good opportunities to develop projects despite rising construction costs. The rental market is also seeing increased demand as many families look for more affordable housing options.
Technology is playing a key role in changing the home buying process. Virtual tours, video calls, and online resources like Google Maps are becoming popular tools for choosing a home. There is also a growing demand for eco-friendly homes and residential areas with developed infrastructure and comfortable conditions for family living.
