Cyprus Housing Market: Property Sales Up Despite Cooling in Luxury Segment

Real estate sales in Cyprus rose by 12% in the first four months of 2025 compared to the same period in 2024, according to CyprusMail, citing the Department of Lands and Surveys. April showed a modest overall increase, although activity dropped in Larnaca and Paphos.

A total of 1,404 transactions were registered in April, up 3% from 1,366 deals in April 2024. From January to April, the number of contracts submitted to district land offices reached 5,541, up from 4,963 in the same period last year.

Limassol remained the top performer, with deals increasing by 5% in April (461 transactions) and by 12% over the four-month period (1,756 deals). Nicosia showed a solid 15% growth both monthly and year-to-date, with April sales rising from 308 to 354, and total transactions reaching 1,286 (+15%).

In Larnaca, activity dropped from 309 to 275 in April (-11%), but grew 15% in the four-month period to 1,185. Paphos also recorded a decline in April (from 252 to 238, or -6%) but a year-to-date rise of 4% (to 1,067). The strongest performance in April was in Famagusta, where the number of deals surged by 33% — from 57 to 76. Cumulatively, Famagusta reported 247 sales in 2025, up 12% from 221 last year.

Meanwhile, Landbank Analytics reports that the average price for new apartments dropped by more than 11% — from €316,000 in 2023 to €281,000 in 2024. House prices on the primary market remained stable at around €461,000.

Luxury real estate is also under pressure: sales of properties over €500,000 declined by more than 50%, and transactions above €1 million fell by 17.2%. According to Andreas Christoforides, CEO of Landbank Group, both locals and foreign buyers are increasingly seeking affordable options — especially visible in Limassol, traditionally Cyprus’s top luxury market.

The Central Bank of Cyprus has also noted a cooling in foreign demand. This coincides with an increase in new housing supply, cheaper construction materials, and streamlined permitting procedures, contributing to moderate price growth.

Rental market stability is another trend, according to Global Property Guide. As of January 2025, average advertised monthly rents were €1,803 for apartments and €3,249 for houses. Limassol is the most expensive city to rent in (€2,742 and €4,492 respectively), followed by Paphos (€1,193 and €2,692), Larnaca (€1,120 and €2,340), Nicosia (€1,017 and €1,900), and Famagusta (€795 and €1,624).

On the mortgage side, the average rate for new housing loans stood at 4.11% in March, slightly higher than the eurozone average of 3.31%. Variable-rate mortgages dropped to 30% of total loans, improving predictability for borrowers. Banks issued €473 million in home loans during Q1 2025 — up 22.6% year-on-year.

Cyprus’s economy continues its positive trajectory, with GDP expected to grow by 2.8% in 2025 and inflation projected at 2.1%, according to the European Commission. Unemployment is falling, supported by foreign labor in tourism, construction, and ICT.

While macroeconomic stability supports a more balanced and predictable housing market in 2025, geopolitical risks — including potential U.S. tariffs — remain a concern. Investors should also be aware of tightening rental regulations, which may reduce rental yields. As of Q1 2025, rental returns average 4.77%, a moderate level by European standards.