Andreas Andreou
With just two months left in the year, October has shown that, despite some resilience, the market remains unable to inspire optimism. Economic indicators for the average household have not sparked an uptick in investment interest, and the ongoing geopolitical instability is growing.
As a result, purchasing plans are being put on hold or postponed, and for younger generations, the prospect of homeownership is increasingly shifting from a dream to a challenge. Meanwhile, supply issues remain persistent, impacted by new licensing policies that are keeping prices high, adding further pressure to the market.
Below is an analysis of how these trends were reflected in October’s real estate data.
In October 2024, a total of 1,551 property sales were recorded, placing the month in fifth place for the year to date. This represents a weaker performance than in October 2023, which was the second-strongest month last year, with 1,738 property transactions.
Regarding sales documents (agreements for future property transfers), the nationwide data for October remained nearly unchanged year-on-year. This year, 1,318 sales documents were filed, a slight 1% increase over the 1,306 submitted in October 2023.
October's total transaction value reached approximately €341.7 million, a notable 6% decrease compared to €363.2 million in October 2023.
Breaking down the monthly totals by province:
Nicosia saw 453 property sales this year, down from 503 last October (a 9.9% decrease). Transaction volume declined 3.6%, with about €76.9 million invested this year compared to €79.8 million last year. Nicosia accounted for 29.2% of October’s total sales volume and 22.5% of transaction value. Sales documents in Nicosia reached 297, a 2% increase from October 2023. The city’s activity remained stable to slightly up compared to September.
Limassol reported 411 property sales, a 7.4% decrease from last year’s 444. The transaction volume, however, rose significantly—up 18.6% to around €133.8 million from €112.8 million last year. Limassol represented 26.5% of the sales volume and 39.2% of the transaction value for October. Sales documents in Limassol numbered 402, marking a 5% increase over October 2023. Limassol was the main pillar of market resilience in October, showing signs of recovery after a challenging period.
Larnaca recorded 314 sales, down 3.7% from last October’s 326. Transaction volume dropped 20.7%, from €57.5 million last year to approximately €45.6 million this year. Larnaca contributed 20.2% to October’s sales volume and 13.3% to transaction value. The province registered 284 new sales documents, an 8% increase from October 2023. Larnaca benefits from investment interest from Israel and Lebanon, though regional instability appears to be impacting its performance.
Paphos had 272 sales this October, a 16.6% decline from 326 last year. The total transaction volume fell by 24.5%, from €93.1 million in October 2023 to around €70.3 million this year. Paphos accounted for 17.5% of the month’s sales volume and 20.6% of transaction value. Sales documents reached 272, nearly the same as last October. For the year to date, Paphos has seen an 11% decrease in new sales documents compared to 2023.
Famagusta recorded 101 sales, down 27.3% from 139 last year, with transaction volume dropping 25.7% from €20.2 million to approximately €15 million. Famagusta made up 6.5% of the sales volume and 4.4% of transaction value for October. The province also registered 63 new sales documents, a 32% drop from last October, marking a 4% year-to-date decline and the province’s weakest month this year.
These trends underscore a growing market crisis, driven by inflationary pressures from energy costs, rising interest rates, and a constrained supply that fails to alleviate high prices. External factors are further dampening activity, leading to reduced transaction volumes.
Mr. Andrew A. Andreou, MRICS, is Managing Director of APS Andreou Property Strategy – Chartered Surveyors.
