According to a recent report by the Cyprus Real Estate Agents Registration Council, the first quarter of 2024 painted a difficult picture for Cyprus's real estate industry. Despite a combination of domestic and foreign economic challenges, the research, which serves as a compass for understanding the dynamics of the market, presents a picture of major slowdowns in property transactions.

Property transactions in Cyprus had a noticeable slowdown during the start of 2024. According to the council's report, 4,543 property exchanges totaling €955.8 million were carried out. Nonetheless, these figures indicate a significant decline, with a 22.9% value loss from the previous quarter.

Many variables are responsible for the slow momentum, but rising interest rates and inflationary pressures are the main ones. These factors along with the uncertainty of the world economy cast a cloud over the real estate market. The significant influence of these forces on the market was emphasised by Marinos Kyneyirou, president of the Cyprus Real Estate Agents Registration Council, who described them as “internal and external factors” that require attention.

The results of several reports issue a clear warning to stakeholders to pay attention to the warning indications. Kyneyirou underlined the pressing need for preventative action and urged government agencies and property owners to work together to improve the situation. “The first quarter data of 2024, compared to the previous quarter, is very worrying and should alert everyone,” he said.

Real estate is a good indicator of how resilient and adaptable Cyprus is as it navigates the complex currents of economic chaos. While significant, the obstacles presented by inflation and geopolitical unpredictability are not catastrophic. In the upcoming quarters, Cyprus's real estate sector can steer towards stability and growth by means of cooperative efforts and partnerships.

Sources:

Cyprus Mail

https://cyprus-mail.com/2024/04/15/cyprus-property-market-bruised-by-inflation-and-geopolitical-conflicts-council-president-says/#:~:text=Cyprus%20witnessed%20a%20notable%20slowdown,Real%20Estate%20Agents%20Registration%20Council.