According to the latest report from Danos and Associates Market According to Insight , the Cyprus residential property market entered 2024 in a strong position, maintaining momentum after one of its most successful decades. The residential sector remains the primary growth driver, demonstrating high stability despite the uneven commercial real estate landscape.
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Rising prices in the residential sector
In the first quarter of 2025, apartment prices increased by approximately 6% year-on-year, while rental rates jumped by 9.3% . This growth continued the upward trend recorded in 2024.
Positive dynamics in the prices of private homes were noted in all areas of the island. Annual growth ranged from 2.6% in the Paphos area to impressive 10.9% in the Famagusta region . This broad geographic spread of growth highlights the ongoing pressure from demand amid limited supply.
Investments and demographic factors
The residential real estate sector is closely linked to the influx of foreign capital. In 2024, foreign buyers purchased approximately 6,900 properties, a 16% increase from the previous year.
- The Limassol region continues to hold the lead in terms of overall transaction volume.
- The Larnaca area showed a significant increase in transaction values of 22% .
- The Paphos region increased its performance by 4% , offsetting the slowdown in other sectors.
Construction activity is also picking up speed. The number of building permits issued through early 2025 increased by 8.3% , and the number of planned residential units jumped by more than 24% . However, experts warn that rising material costs, stricter sustainability requirements , and high financing costs will continue to impact the scale and timing of new projects.
Office and commercial real estate
While residential real estate is booming, the commercial sector is showing mixed results:
- Offices: Demand for business space has reached a five-year high. Class A offices remain in short supply. In the Limassol area , office rents have risen to €25–€50 per square meter, while in Larnaca, rates have almost doubled.
- Commercial real estate: Polarization is evident here. Large shopping centers ( malls ) are thriving: rents in prime locations have risen to €70 per square meter (versus €45 pre-pandemic ). Meanwhile, traditional street-level retail is facing challenges due to changing consumer behavior and competition from malls .
Regional features of commercial real estate
- Limassol: Commercial property rents range from €25 to €50 per square meter. The Makariou area is gradually being transformed from a purely commercial area into a residential and business center.
- Nicosia: Remains the most affordable commercial real estate market with rates of €20–€45 per sq.m.
- Larnaca: Showing growth due to coastal demand and tourism (rates €10–€25 per sq.m).
The overall economic outlook for 2025 remains favorable for the residential real estate market. GDP growth is projected to be 3% , unemployment has fallen to 6% , and public finances remain in surplus . Experts see long-term opportunities in the logistics sector, supported by the island’s strategic location and infrastructure development in various parts of the country.
