The Cyprus property market has shown remarkable resilience in the first half of 2024, with property transfers increasing by 8% to reach 9,374 and the transaction value rising to €2.07 billion. Despite a slight decline in sales documents, the second quarter saw a notable 6.3% increase in transfers and a 14.6% rise in transaction value, indicating strong market momentum and robustness in the face of adversity.
The Cyprus real estate market is currently facing a slowdown, with house and apartment prices decelerating and sales declining due to rising lending rates and high construction costs. Regional disparities exist, with Paphos and Famagusta seeing price increases while other areas progress more slowly, leading to a market recalibration.
In Cyprus, apartment prices have surged by 6.3% and rents by 9.3%, fueled by foreign investment and incentives like the ‘Golden Visa.’ The market is expected to see continued growth in the short term, with technological advancements and increased housing supply shaping a more stable future outlook.
Hellenic Bank made a bold move by acquiring CNP Insurance’s operations in Cyprus and Greece, aiming to diversify revenue sources and dominate the insurance market. This strategic expansion not only boosts market share but also enhances overall financial resilience, setting Hellenic Bank on a path towards becoming a leading financial institution in the region.
Oil prices have dropped due to less tension in the Middle East and worries about low demand. Brent futures fell by 0.7%, while US crude futures fell by 0.6%. This is due to a potential easing of tensions between Israel and Iran, disappointing global oil consumption figures, and a surprising increase in US crude inventories.
The government is taking steps to cap potable water prices at public venues to ensure affordability for consumers. Legislation proposes maximum prices for bottled water, with fines for noncompliance, aiming to balance access to clean drinking water with market health.
Oil prices have dipped due to an increase in Russian oil exports despite attacks on their infrastructure, and slower jet fuel demand recovery affecting summer travel. Market uncertainty is further fueled by geopolitical tensions and the Federal Reserve’s upcoming interest rate decisions.
The surge in cocoa prices has led to a 2030% price increase for products containing chocolate from Alkis H. Hadjikyriakos Public Ltd. With cocoa prices up by 153.55% in the past year, this has put pressure on chocolate sales and may decrease market consumption.
Cyprus’ tourism sector is navigating challenges like a gap between tourist arrivals and hotel occupancy, labor shortages, and high energy costs. With the loss of key markets like Russia and the need for sustainable practices, the industry is facing economic pressures impacting profitability.
Cyprus is strengthening its global trade presence by participating in international exhibitions such as the FHC Shanghai 2023 and PROWINE Shanghai 2023, showcasing local products like halloumi cheese and wines. This strategy helps to elevate Cyprus’s commercial profile and foster business relationships in competitive markets. Additionally, the country is experiencing fluctuations in petroleum product sales and stock market performance, reflecting the complexities of the global economy.
