The Cyprus property market continues to demonstrate stability and high demand, confirming the positive dynamics that emerged in 2024. According to statements by the President of the Cyprus Council of Registration of Estate Agents, Marinos Kineiro , buyer activity remains high, both from local residents and foreign investors. Interest is particularly noticeable from buyers from third countries, including Israel and Lebanon.
The main factor in the stability of the market in 2025 was the maintenance of a balance between supply and demand. Despite high activity, prices remain relatively stable. According to Eurostat, in the first quarter of 2025, property prices in Cyprus grew by 2% year-on-year. For comparison, the average in the European Union reached 5.7%, and in the eurozone – 5.4%. This confirms the more restrained nature of price dynamics in Cyprus compared to most European countries.
However, high property prices are still putting pressure on local buyers. Although lending rates are gradually falling, the rising cost of living is limiting Cypriots’ ability to purchase residential property.
Strong interest from foreign investors has a noticeable impact on the market. In addition, low interest rates on deposits in Cypriot banks encourage local investors to transfer capital to real estate, considering it a more profitable and reliable asset.
Kineiro noted that the myth that licensed realtors artificially inflate prices is not true. The real cost is formed by the owners and depends on supply and demand.
The real estate market situation varies depending on the area:
- Limassol continues to hold the lead in expensive and luxury real estate;
- Paphos has shown high levels of demand from both foreign and local buyers over the past two years;
- Larnaca is becoming an increasingly attractive destination due to the relatively affordable prices of apartments, especially one- and two-bedroom ones. Despite the rise in prices over the past three years, the area remains more affordable than Limassol and Nicosia. This is why buyers from other areas, including the capital, are increasingly turning to it.
Experts note that in the absence of serious external factors, the Cyprus real estate market will maintain stable demand throughout 2025. The situation is characterized by activity, which opens up new opportunities for investors. At the same time, the availability of residential real estate for the local population remains an important challenge.
Kineiro emphasized that for the further development of the market it is necessary to constantly monitor changes and adapt to new conditions. Such an approach will not only maintain a high level of investment, but also solve social problems related to providing the population with affordable housing.
