17.01.2024
In the third quarter of 2023, housing prices in Cyprus continued to rise, especially for apartments. Valuers expect changes in the next six months, predicting a decline in prices for predominantly expensive properties costing €500,000 and above.
Analyzing transaction data from January 2021 to September 2023, Loizu highlights changing consumer preferences. Initially, the market was dominated by apartments priced under €300,000, accounting for about 80% of transactions. Over time, the share of this segment decreased to 60%, and the price category from 300,000 to 500,000 euros showed significant growth, doubling its market share.
The overall sales growth trend continued until mid-2022, followed by a noticeable decline in market volumes from June 2023. It is noteworthy that the drop in sales affected more expensive apartments the most.
Loizu also assessed the structure of transactions: in January 2021, real estate worth more than 300,000 euros will account for about 80% of the volume. By September 2023, this figure had dropped to around 60%. Surprisingly, the most significant increase in transaction volume occurred in properties valued between €300,000 and €500,000, increasing from 10% of transactions in January 2021 to 25% of total transaction volume. Prices for properties valued at more than €500,000 are expected to decline over the next six months due to increased supply in this category and decreased interest from foreigners.
As the property market in Cyprus undergoes these changes, the coming months will be critical in understanding the evolving dynamics, especially for luxury properties.
