Cyprus property market challenges expected to persist in 2025
The Cypriot property market fared well in 2024 despite challenges, which are expected to continue into 2025, according to Cyprus Real Estate Agents Registration Council president Marinos Kineyirou. Speaking to local outlet Economy Today, Kiney
The Cypriot property market fared well in 2024 despite challenges, which are expected to continue into 2025, according to Cyprus Real Estate Agents Registration Council president Marinos Kineyirou.
Speaking to local outlet Economy Today, Kineyirou explained that while 2024 was “another difficult year for the property market“, the outcomes achieved “provide an indication of the prevailing conditions and serve as a potential precursor for the challenges expected in 2025“.
According to the latest data from the Department of Lands and Surveys, sales documents saw a 2 per cent increase between January and November 2024, compared to the corresponding period in 2023.
“While this represents a modest increase, it is significant given the prevailing conditions,” Kineyirou stated.
“Inflation, high borrowing interest rates, and the stabilisation of property prices at elevated levels were among the key challenges for local buyers,” he added.
He also said that “geopolitical developments and ongoing regional conflicts continue to affect the market, especially by reducing interest from foreign buyers”.
The council president also mentioned that “one of the main issues that shaped the sector in 2024—and is likely to persist into 2025—is the combination of rising demand for housing and limited supply“.
“While the increase in supply helped moderate prices for both sales and rentals, many people are still struggling due to the rising cost of living caused by inflation,” he said.
He pointed out that affordable housing remains a “pressing societal concern”, prompting the council to propose measures to boost supply, including improved regulation of short-term holiday rentals, similar to models implemented in other countries.
Moreover, he said that the housing market faced negative impacts on supply in the latter part of 2024, primarily due to two significant factors.
“Firstly, delays in issuing permits by district authorities created bottlenecks, although there is optimism that this situation will improve over time,” the council president said.
“Secondly, a prolonged strike in the ready-mix concrete industry severely affected the construction sector, delaying the start of new projects and slowing the addition of new properties to the market,” he added.
Kineyirou also mentioned that the property market in 2024 “performed well overall, given the obstacles it faced”.
However, he cautioned that “challenges are expected to persist in 2025”.
“On a positive note”, he continued, “the reduction of interest rates by the European Central Bank (ECB) and the easing of inflationary pressures could boost demand from local buyers, especially if Cypriot banks finally lower lending rates“.
“Nevertheless, geopolitical instability and regional conflicts continue to perpetuate uncertainty, casting a shadow over the outlook for 2025,” he added.
Kineyirou also stressed that “throughout 2024, the council reiterated the critical role of licensed estate agents in ensuring the smooth operation of the property market and protecting buyers”.
“Efforts to combat unlicensed agents—who pose as legitimate professionals to deceive unsuspecting citizens—remained a top priority,” he said.
He mentioned that “regular media interventions were used to educate the public on how to avoid falling victim to such fraudsters“.
“When deemed necessary, we have intervened decisively,” Kineyirou said.
He cited a recent example involving a proposed law discussed by the House of Representatives’ legal committee, which aims to shut down the real estate profession for the benefit of lawyers.
“The council has voiced its strong opposition to this proposal in no uncertain terms, both in writing and verbally, to all relevant stakeholders,” he stated.
Finally, Kineyirou expressed the council’s belief that “collaboration between the government, the private sector, and industry professionals is essential for creating a sustainable and competitive environment for the property market in Cyprus”.
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