The resilience of Cyprus' real estate market, despite ongoing international uncertainty, is evident in the "Cyprus Market Watch" report by Delfi Partners & Company. Supported by strong domestic activity and stabilizing inflation, the market continues to demonstrate adaptability while addressing broader challenges.

Data on building permits for the first half of 2024 recorded a significant 32.5% year-on-year increase, reflecting robust development momentum. However, projections for the remaining months of 2024 suggest a potential decline, primarily attributed to municipal reforms that caused considerable delays in the building permit approval process.

Real estate sales also showed resilience. Sales to domestic buyers increased by 13% from January to September 2024 compared to the same period in 2023. This growth in local activity helped offset a 13.4% decline in sales to international buyers, largely driven by global economic uncertainty and regional geopolitical tensions. Nonetheless, international buyers still accounted for 44% of total real estate sales in Cyprus, reaffirming the country's enduring appeal as an investment destination.

"We are observing a market shift where domestic buyers are taking on a more prominent role, while international interest, though reduced, remains noteworthy," said Michalis Loizou of Delfi Partners & Company. "This shift highlights the adaptability of Cyprus' real estate sector, which continues to offer opportunities even amidst global economic challenges."

The total value of transactions reached €2 billion by mid-2024, surpassing pre-pandemic levels, while the average transaction value climbed to €340,790, exceeding 2019 levels for the first time. Limassol maintained its position as the leading district for real estate activity, contributing 32% of total sales, followed by Nicosia at 22% and Larnaca at 21%.

In the months ahead, Cyprus' economy is expected to continue recording substantial growth rates while inflation stabilizes. These factors, combined with anticipated interest rate reductions and the dynamic real estate sector, position Cyprus as an attractive destination for investors seeking security, stability, and growth in a competitive market.