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The real estate markets in Greece and Cyprus continue to attract investors

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Foreign investment continues to drive the residential sector in both countries, despite inflationary pressures and rising interest rates affecting much of Europe.

The essence

According to Danos International Real Estate Consultants and Valuers, the Cyprus and Greek property markets are maintaining a positive outlook and offering attractive investment opportunities despite all the adverse factors.

Foreign investment continues to drive the residential sector in both countries, supported by local demand. Class A office space also remains in demand.

Cyprus

The Central Bank of Cyprus has reported an annual house price growth of 7.8% in the first quarter of 2024, down slightly from 8.3% in the fourth quarter of 2023.  Apartment prices surged 13.9%, while house prices rose 4.7%.

Luxury real estate continues to support the Cyprus market, with total sales reaching €2 billion and the trend is expected to persist through 2024.

According to Danos, foreign buyers have purchased 6,900 properties in Cyprus in 2023, up 16% from 2022. The Cyprus Land Registry has reported its strongest seven-month period since 2008.

The European Central Bank’s planned interest rate cuts are expected to encourage local buyers. And the increase in the supply of residential real estate is also predicted to balance the market over time.

Greece

he Bank of Greece data shows that the average house price in the southern suburbs of Athens have reached €3,750 per square metre in the first quarter of 2024, the highest in the country. Piraeus showed the most significant annual growth of 28.9%.

Nationwide, apartment prices in Greece have increased by 10.4% per year, with regional differences: Athens by 9.4%, Thessaloniki by 12.2%, other cities by 10.3% and other regions by 12.1%.

Commercial properties in Cyprus

Demand for commercial property in Cyprus has reached a five-year high, recovering from the COVID-19 pandemic. Foreign investment has driven demand for office space, particularly modern Class A offices.

Rental prices in Cyprus have increased by 8.5% year-on-year in Q1 2024, around 10% above 2019 levels. Office rents, which bottomed out in Q1 2022, are now around 14% higher.

Limassol and Larnaca are leading the Cypriot market, while Nicosia is showing a steady recovery. Despite new supply, office rents are expected to remain high due to robust demand and new standards.

The Cyprus commercial property market is particularly appealing to foreign companies attracted by the island’s high quality of life, strategic location and favourable tax system.

Source: In-Cyprus

Photo by Datingscout on Unsplash

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