As we progress through 2024, the Cypriot real estate market offers a compelling picture of stability interspersed with regional variations and shifting buyer preferences. Unlike some European markets which are experiencing volatility, Cyprus displays resilience and promise, though with notable differences across various areas and neighbourhoods.

Overall, the property market in Cyprus remains strong, with urban centres such as Nicosia, Limassol, and Paphos witnessing increases in house prices. This trend is driven by robust demand in these popular areas, contrasting with the slower growth in rural regions, where price movements are minimal. The luxury segment, particularly along the coast, continues to excel, reflecting ongoing global interest in high-end properties and scenic views.

The main challenge in the market faces currently is an unprecedented supply crunch, attributed to slower new construction coupled with continued high demand. This shortage is also propelling the rental market, with prices climbing notably in popular urban and tourist areas.

Current high-end buyers are increasingly focused on sustainability credentials. There is greater emphasis placed on properties with energy-efficient features and eco-friendly, natural materials. There is a strong demand for smart home technologies that provide enhanced security and convenience as well as natural timber-construction. Properties with private pools, expansive outdoor spaces, and contemporary designs are particularly sought after, especially those situated in coastal locations or integrated communities offering picturesque views and convenient living.

Several enclaves across the island are noteworthy for those seeking investment opportunities or new homes. Paphos, known for its beautiful beaches and historical landmarks, remains a prime location. Areas such as Kato Paphos and Paphos Harbour offer coastal charm and easy access to amenities, while Akamas is celebrated for its natural beauty and outdoor pursuits. In Limassol, neighbourhoods like Neapolis and Columbia are renowned for their luxurious living options and beach access. Nicosia’s Engomi and Makedonitissa provide a blend of residential and commercial appeal, while Larnaca’s Mackenzie Beach and Larnaca Marina are highly desirable for their seaside living. Ayia Napa continues to attract interest with upscale developments around Nissi Beach and Cape Greco, offering both luxury and breathtaking sea views.

The Cypriot real estate market is attracting a diverse range of international buyers. British investors are drawn to the island’s lifestyle and historical connections, while Europeans appreciate the favourable tax conditions. There is growing interest from the Middle East, China, and eastern European countries, driven by Cyprus’s stable investment environment and advantageous residency programmes. North American buyers are also exploring opportunities in Cyprus, enticed by the island’s lifestyle and investment potential. Locally, there is a rise in interest from buyers seeking more space, including remote workers and affluent individuals.

Looking ahead, several exciting projects are set to shape the future of Cyprus’s real estate landscape. The Paphos Marina is poised to offer luxury waterfront residences with stunning sea views, while the Blu Marine project in Limassol promises high-end living with exceptional amenities. There is an increasing trend towards eco-friendly and smart homes across the island, with numerous developments focusing on sustainability and advanced technology. Additionally, mixed-use developments in Limassol and historic revitalisations in Nicosia are blending modern comforts with cultural heritage, further enhancing the market’s appeal.

For those considering investment or relocation, Cyprus presents a promising and adaptable market within the broader Mediterranean context.