Cyprus Property Market Hits Record

Cyprus’s real estate market ended 2025 with record transaction value, supported by domestic buyers, foreign investors and active development. Growth was concentrated in residential property, especially apartments, while the luxury segment remained stable and began shifting more visibly from Limassol toward Paphos.

Cyprus real estate transactions reached €6.5 billion

Cyprus’s property market reached record levels in 2025 by both value and transaction volume, despite higher construction costs, persistent geopolitical uncertainty and rising home prices in key coastal districts. According to PwC Cyprus, total real estate transaction value increased by 8% to €6.5 billion from €6.0 billion a year earlier, while the number of transactions rose by 4% to 25,600.

Growth was visible across almost all districts. Limassol was the exception, recording a marginal decline in transaction value, but it still dominated the market with a 41% share of total value. That confirms the city’s position as Cyprus’s main hub for high-value property, corporate demand, international offices and premium housing, even as some activity gradually shifts elsewhere.

For the Cypriot economy, the data show that real estate remains one of the country’s core investment sectors. The market is supported by domestic housing demand, foreign buyers, tourism infrastructure, residential construction and interest in property linked to relocation, rental income and long-term residence.

Residential property remained the market driver

Residential property remained the backbone of the Cypriot market in 2025. Transaction value in the segment reached €4.5 billion, equal to 69% of the total. That shows the market continues to depend primarily on housing rather than commercial assets, land or specialist real estate.

Apartments were the main source of growth. They accounted for around 60% of the total increase in transaction value during the year. The pattern reflects several forces at once: houses in popular locations are becoming less affordable, buyers are shifting toward smaller units, foreign investors prefer apartments as a more liquid asset and developers are increasingly launching multi-unit projects.

The rise of apartment demand is especially important in cities with a high concentration of jobs, universities, tourism assets and international companies. In these markets, an apartment is not only a place to live but also an investment vehicle for long-term rental, short-term letting and capital preservation.

Foreign buyers strengthened coastal demand

Demand from foreign buyers rose by 16% in 2025. Paphos, Larnaca and Limassol were the main contributors, together accounting for around 80% of the increase in properties acquired by overseas buyers.

Official data from the Department of Lands and Surveys track foreign purchasers from both European Union countries and non-EU jurisdictions, including deposited sale contracts and completed transfers. This matters because foreign buyer activity in Cyprus has a long-standing influence not only on prices but also on the structure of supply, particularly in coastal districts.

Paphos benefits from a combination of resort demand, comparatively lower prices and interest from buyers focused on residence, rental income and retirement migration. Larnaca is supported by infrastructure projects, urban renewal and expectations around waterfront development. Limassol remains the most expensive and mature market, but high entry costs are gradually limiting some buyers.

Limassol led luxury sales as Paphos gained ground

Luxury residential property, defined as homes valued above €1.5 million, remained stable. In 2025, the segment recorded 203 transactions with a combined value of €550 million. That represented 8% of the total value of the Cypriot real estate sector.

Limassol retained first place in premium housing, but its share fell from 76% in 2024 to 61% in 2025. At the same time, Paphos increased its share of high-end residential transactions from 18% to 28%. This was one of the clearest shifts of the year: premium demand is no longer almost entirely concentrated in one city.

The change may reflect price fatigue in Limassol, stronger supply in Paphos and buyer interest in a more balanced combination of price, lifestyle and investment potential. For developers, the message is that demand for expensive homes remains intact, but buyers are becoming more selective and are assessing not only the address but also infrastructure, views, construction quality and future resale liquidity.

Construction moved toward higher-value projects

From January to October 2025, the number of new building permits rose by 9%, while their total value increased by 28%. That means the market expanded not only in volume but also in project value, as developers moved toward more capital-intensive schemes.

Statistical Service data for January–October show 6,490 permits issued compared with 5,955 a year earlier. The total value of permits rose by 27.7%, total area by 30.7% and the number of future dwelling units by 33.1%. The figures point to an expanding development cycle, but they also raise questions about cost, delivery timelines and the market’s capacity to absorb new supply.

Limassol and Nicosia remained the leaders by permitted project area. Significant growth was recorded in hotel and leisure developments, while retail and warehouse projects declined. This reflects a shift in capital toward tourism, housing and higher-quality urban infrastructure.

Home prices rose with demand and costs

The increase in transactions came alongside higher residential prices. The Central Bank of Cyprus published its residential property price index report for the third quarter of 2025, covering regional movements in house and apartment prices. Market participants indicate that apartments have been rising faster than houses because demand for more affordable housing formats is stronger.

Price growth is driven not only by buyers but also by developer costs. Construction materials, labour, financing, energy-efficiency requirements and planning delays are pushing up project costs. As a result, new developments enter the market at higher prices, while the resale market receives additional support from limited availability of quality housing.

For buyers, this creates a more difficult trade-off. On one hand, an active market confirms the liquidity of Cypriot real estate. On the other, high entry prices in popular districts reduce affordability for local households and intensify political pressure around rents and first-home ownership.

Apartments became the price-yield compromise

The main structural shift of 2025 was the stronger role of apartments. For local buyers, apartments are often a way to remain in the city despite limited budgets. For foreign buyers, they offer a simpler ownership, management and rental model. For developers, they allow more efficient use of land in high-demand areas.

This is most visible in Limassol, Larnaca and Paphos, where demand comes not only from families but also from relocated professionals, students, employees of international companies, tourists and long-term tenants. Apartments are easier to resell, simpler to maintain and faster to place on the rental market.

The growth of the apartment segment also carries risks. If supply is concentrated in expensive new-build units, affordability for local residents may not improve. If a large share of stock is designed for foreign buyers and rental income, the market may face a widening gap between investment demand and the housing needs of permanent residents.

Cyprus real estate remains exposed to geopolitics

Cyprus enters 2026 with a strong property-market base, but not without risks. The island sits in a region where geopolitical events can quickly affect tourism, investment, capital costs and foreign buyer decisions. This is particularly important for real estate because a significant part of demand is linked to international capital, relocation, business and buyers from multiple jurisdictions.

A separate risk is the dependence of coastal markets on foreign demand. Paphos, Larnaca and Limassol benefited from overseas buyers, but such markets can react faster to changes in visa rules, banking controls, sanctions regimes, currency movements and political uncertainty.

Domestic demand also faces constraints. Rising prices and borrowing costs make home ownership less accessible for some households. If wages do not rise at a comparable pace, the market may become more divided: liquid assets for investors and foreigners may keep appreciating, while local buyers increasingly move into rental housing or more remote districts.

What the 2025 record means for investors

The record 2025 figures confirm that Cyprus remains a resilient property market with a high share of residential demand and strong foreign interest. But the structure of growth shows that investors can no longer rely only on broad market expansion. District, property type, construction quality, rental potential and resale liquidity are becoming more important.

Limassol remains the most expensive and institutionally mature market, but its share of the premium segment has declined. Paphos is gaining ground in luxury housing and foreign demand. Larnaca looks like an infrastructure-led market. Nicosia retains its role as the administrative and business centre, where demand is more closely tied to the domestic economy, education and office employment.

As experts at International Investment report, Cyprus’s record transaction value should not be read as an unconditional signal of further price growth. The sector remains strong, but it increasingly depends on the quality of demand, housing affordability for local residents and the ability of developers to deliver infrastructure rather than only new square metres. The main risk for 2026 is that the market may remain attractive for capital while widening the gap between investment returns and housing affordability.

FAQ: Cyprus real estate market

What happened to the Cyprus property market in 2025?

The market reached a record level, with transaction value rising to €6.5 billion and the number of deals reaching 25,600. Residential property, especially apartments, was the main driver.

Why did apartments become the main source of growth?

Apartments are more affordable than houses, easier to rent and popular with foreign investors. They accounted for around 60% of the increase in transaction value during the year.

What role did foreign buyers play?

Foreign buyer demand rose by 16%. Paphos, Larnaca and Limassol accounted for around 80% of the increase in properties acquired by overseas buyers.

What happened in Cyprus’s luxury property market?

The segment above €1.5 million remained stable, with 203 transactions worth €550 million. Limassol kept the lead, but its share declined, while Paphos gained ground.

Why are construction values rising in Cyprus?

The value of building permits is rising faster than the number of permits. This reflects larger and higher-value projects, rising costs, quality requirements and a shift toward more expensive developments.

What are the main risks for 2026?

The key risks are geopolitics, dependence on foreign demand, rising prices, local housing affordability and whether infrastructure can keep pace with construction.