Despite ongoing regional and global challenges, the Cyprus property market has shown remarkable resilience, buoyed up by favourable conditions and sustained foreign interest over the past two years. The outlook for 2025 remains optimistic.
Foreign nationals, including EU and third-country citizens, comprised around 40% of all property transactions in 2023 and 2024. Their robust participation underscores their confidence in the Cyprus property market and highlights their critical role in maintaining its upward trend.
Beyond real estate, foreign investors have significantly contributed to other sectors, including retail, forex, and technology companies, making a significant contribution to growth and the economy.
Stability amid challenges in 2024
Property sales in 2024 increased marginally by 1% compared to 2023, reflecting the ability of the market to withstand challenges such as inflation, high interest rates, and external pressures including conflicts in the Middle East and Ukraine, as well as volatile energy prices.
Forecast for 2025: stability and growth
Projections for 2025 suggest steady activity levels, with continued demand from both Cypriot and foreign buyers ensuring market stability.
Larnaca’s growing prominence
Larnaca emerged as a rising star in 2024, driven by strong interest from Israeli, Lebanese, Russian, and Ukrainian investors.
Recording 3,350 property transactions (a 5% increase), Larnaca overtook Paphos to claim third place in sales. This growth stems from factors such as historically low property prices, the city’s international airport, new hotel investments, a modern mall, and the forthcoming 2.5 km Larnaca-Dhekelia coastal development. These enhancements position Larnaca for sustained expansion and long-term growth.
Limassol maintains leadership
Limassol remained the leader in property sales, with approximately 5,000 transactions in 2024. However, the city saw a slight 1% decline, possibly due to Larnaca’s growing appeal.
Nicosia: a focus for domestic buyers
Nicosia recorded 3,500 property transactions in 2024, a 14% year-on-year increase – the largest growth among all districts. Dominated by Cypriot buyers, the capital remains a cornerstone of the local property market.
Paphos and Famagusta see moderate falls
Paphos experienced the most significant drop, with sales falling 8% to 3,107 transactions, relegating it to fourth place behind Larnaca. However, higher property prices in Paphos may mean its overall revenue remains competitive.
Famagusta, a smaller market, recorded 775 transactions in 2024 – a 5% decline that is negligible given its limited size.
Optimism for 2025
In an interview with Philenews, Polis Kourousides, President of the Cyprus Property Valuers Association, expressed confidence in the property market’s prospects for 2025. He noted that the sector has absorbed the impacts of ongoing geopolitical conflicts, which are no longer seen as critical threats unless significantly escalated.
Kourousides highlighted the potential for falling interest rates in 2025, which would further stimulate the property market.
Apartments: the main interest
Apartments remain the primary interest for both domestic and foreign buyers. Cypriots typically invest between €250,000 and €300,000, while foreign buyers often spend up to €500,000. This balanced demand serves as a key pillar supporting the Cyprus property market.