In February, Cyprus’ real estate market experienced a 7 percent growth in property sales compared to the same month the previous year, with Limassol, Larnaca, and Nicosia each registering over 300 sales during this period. Despite declines in Famagusta and Paphos—down by 25% and 10% respectively—sales in Larnaca surged by 36%, while Nicosia witnessed a 13% rise, and Limassol, although showing the smallest increase, still achieved a 5% boost in property sales contracts registered.

Examining the total contracts of sale deposited for the 2024/2025 comparison, there’s a positive trend overall. However, concerns linger about foreign buyers pushing up prices, making it challenging for younger Cypriots to purchase or rent their own homes.

Cyprus is facing a housing crisis as rents or mortgages surpass 40% of household income, complicating homeownership, particularly for young adults and middle-income families. With house prices reaching seven times the average household income (€270,000 vs. €38,000), affordability remains a pressing issue. This leads to delays in family planning, rejected university offers, and job refusals due to high housing expenses.

To address these challenges, the Cyprus Real Estate Agents Registration Council has proposed prohibiting daily accommodation rentals. Notably, nearly one-third of Airbnb listings are currently unregistered and therefore illegal. Meanwhile, the political party AKEL has suggested removing the reduced 5% VAT rate for foreign buyers to benefit lower and middle-income families. Nevertheless, the Attorney General’s office declined a proposal to limit short-term rental properties, allowing investors to continue acquiring multiple units and competing with hotels without adhering to the same regulations.

Although Cyprus is developing affordable housing to assist young people entering the housing market, the potential for overseas investors to purchase such properties remains a concern.

Focusing on the domestic (Cypriot) market, February saw a 6% increase in sales compared to February the previous year. While Famagusta and Paphos experienced 32% and 30% declines respectively, these were offset by a 64% rise in Larnaca, an 8% increase in Nicosia, and a modest 1% uptick in Limassol. Over the first two months of 2024, domestic sales rose by 15% relative to the same timeframe last year, with declines in Paphos and Famagusta countered by 43% growth in Larnaca, 23% in Limassol, and 13% in Nicosia.

As for the overseas market—encompassing both EU and non-EU buyers—sales in February increased by 8% compared to the previous February. Although a decline of 18% was observed in Famagusta, sales were up 38% in Nicosia, 9% in both Paphos and Larnaca, and 6% in Limassol. Over the first two months of 2024, overseas sales climbed 10% compared to the prior year, with all districts seeing growth. Sales in Nicosia rose by 14%, Larnaca by 13%, Famagusta by 13%, Limassol by 11%, and Paphos by 6%.

Sales to EU citizens saw a significant 31% increase in February year-over-year, with all districts posting gains. Sales in Nicosia increased by 41%, Paphos by 32%, Limassol by 30%, Famagusta by 29%, and Larnaca by 25%. In the first two months of 2024, sales to EU citizens rose by an impressive 37% compared to the same period last year, with Famagusta climbing a remarkable 105%, Paphos increasing 52%, Nicosia up 32%, Limassol up 19%, and Larnaca up 11%.

Sales to non-EU citizens experienced a slight decline of 1% in February compared to February last year. Although there were increases in Nicosia (36%), Larnaca (2%), and Limassol (1%), sales in Famagusta dropped by 57%, and Paphos declined by 2%. Over the first two months of 2024, sales to non-EU citizens were nearly unchanged from the prior year. Sales fell in Famagusta and Paphos by 38% and 9%, respectively, but increased by 13% in Larnaca, 8% in Limassol, and 2% in Nicosia.

A market segment summary reveals varying preferences among different buyer categories across districts. In Paphos, popular for holiday homes, sales to non-EU nationals surpass domestic sales. In contrast, Cyprus’ capital, Nicosia, is the least favored district among international investors. This detailed analysis highlights the diverse dynamics within Cyprus’ real estate market as it balances between domestic needs and international interests.