Cyprus and Greece’s property markets are maintaining a positive outlook and offering attractive investment opportunities, despite inflationary pressures and rising interest rates affecting much of Europe, Danos International Real Estate Consultants and Valuers reports.
Foreign investment continues to drive the residential sector in both countries, supplemented by local demand. Class A office space also remains in high demand.
Eurostat’s House Price Index (HPI) shows house prices fell 0.4% in the euro area but rose 1.3% in the EU in the first quarter of 2024, compared to the same period last year.
The Central Bank of Cyprus reports an annual house price increase of 7.8% in Q1 2024, down slightly from 8.3% in Q4 2023. Apartment prices surged 13.9%, while house prices rose 4.7%.
Luxury properties continued to bolster the Cypriot market, with total sales reaching €2 billion, a trend persisting into 2024.
Foreign buyers acquired 6,900 properties in Cyprus in 2023, a 16% increase from 2022, according to Danos.
An anticipated decrease in European Central Bank interest rates is expected to encourage more local buyers. Increased supply of residential properties is also predicted to balance the market over time.
The Cypriot Land Registry reports the real estate market is experiencing its strongest seven-month period since 2008.
In Greece, the Bank of Greece data shows the average house price in Athens’ southern suburbs reached €3,750 per square metre in Q1 2024, the highest nationwide. Piraeus saw the most significant annual increase at 28.9%.
Nationally, Greek apartment prices grew by 10.4% annually, with regional variations: Athens 9.4%, Thessaloniki 12.2%, other cities 10.3%, and other areas 12.1%.
Commercial property demand in Cyprus has reached a five-year high, recovering from the COVID-19 pandemic. Foreign investment has boosted demand for office space, particularly modern, Class A offices.
Cypriot rental prices increased 8.5% year-on-year in Q1 2024, about 10% higher than 2019 levels. Office rental prices, which bottomed out in Q1 2022, are now approximately 14% higher.
Limassol and Larnaca lead the Cypriot market, with Nicosia showing steady recovery. Despite new supply, office rental prices are expected to remain high due to sustained demand and new standards.
Cyprus’s commercial real estate market is particularly appealing to foreign companies, attracted by the island’s high quality of life, strategic location, and favourable tax system.
