Despite ongoing regional and global challenges, the Cyprus residential property market has shown considerable stability. This is due to favourable conditions and continued interest from foreign investors over the past two years. The forecast for 2025 remains optimistic.
Around 40% of all property sales and purchases in 2023 and 2024 were made by foreign nationals, including EU and third country nationals. Their active participation confirms the confidence in the Cyprus residential property market and underlines the key role they play in supporting its growth.
In addition, foreign investors significantly contribute to the development of other sectors of the economy such as retail, forex and technology companies , which makes a significant contribution to the economic growth of Cyprus.
Residential property sales in 2024 increased by 1% compared to 2023, demonstrating the market’s ability to adapt to challenges such as inflation, high interest rates and external pressures, including conflicts in the Middle East and Ukraine, as well as fluctuating energy prices .
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Larnaca
Larnaca stood out as one of the fastest growing areas in Cyprus in 2024. In 2024, 3,350 residential property transactions were recorded (an increase of 5%), allowing Larnaca to overtake Paphos to take third place in terms of sales. The growth is due to a number of factors, such as historically low residential property prices , the presence of an international airport, new hotel investments, a modern shopping mall and the upcoming development of the 2.5 km long Larnaca-Dhekelia coastal area . These improvements will ensure Larnaca has a stable development and long-term growth.
Limassol
Limassol remains the leader in residential property transactions, with around 5,000 contracts in 2024. However, it recorded a slight decline in sales of 1%, which may be due to the growing attractiveness of Larnaca.
Nicosia
Nicosia recorded 3,500 residential property transactions in 2024, up 14% year-on-year. This is the highest growth of any district in Cyprus. The bulk of transactions are carried out by Cypriots, and the capital remains the cornerstone of the local property market .
Paphos and Famagusta
Paphos recorded the largest decline in residential property sales, with sales down 8% to 3,107 transactions. However, high residential property prices in Paphos may mean that its overall sales revenue remains competitive. Famagusta recorded 775 transactions in 2024, with a 5% decline in sales, which is negligible given the limited size of the market.
Apartments remain the center of interest
Apartments continue to be the main focus of interest for both local and foreign buyers. Cypriots typically invest in properties priced between €250,000 and €300,000, while foreign buyers often spend up to €500,000. This balanced demand is an important pillar supporting the Cyprus residential property market.
Forecasts for 2025
Forecasts for 2025 suggest stable market activity, with continued demand from both Cypriot and foreign buyers. This will ensure stability in the residential property market.
The President of the Cyprus Association of Property Appraisers, Polis Kourousides, expressed confidence in the prospects of the property market in 2025. He noted that the sector has already survived the effects of the current geopolitical conflicts, which are not considered critical threats unless the situation escalates. Kourousides also highlighted the potential for interest rate cuts in 2025, which could further stimulate the residential property market.
