In February, the Cyprus residential property market saw a 7% increase in sales compared to the same month last year. A significant number of transactions were recorded in the areas of Limassol, Larnaca and Nicosia, where the number of properties sold exceeded 300. However, the areas of Famagusta and Paphos saw a decrease in sales by 25% and 10% respectively.
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Sales growth in key areas
- Larnaca : Sales growth was 36%, the highest among all districts.
- Nicosia : Sales up 13%.
- Limassol : Despite a modest 5% growth, the area remains a strong buyer’s favourite.
Problems of affordability of residential real estate
Despite the positive trends, there are concerns about the impact of foreign buyers on prices. Many young Cypriots face difficulties in buying or renting their own residential property. Rent or mortgage payments exceed 40% of household income, making property purchases unaffordable for young people and middle-income families. The average house price (€270,000) exceeds seven times the average annual income (€38,000). This leads to family planning being postponed, university offers being rejected, and jobs being turned down due to high living costs.
Proposals for resolving the crisis
To mitigate the effects of the crisis, various measures are proposed:
- The Cyprus Real Estate Agents Registration Board has proposed banning short-term rentals.
- AKEL party has called for the abolition of the reduced VAT rate (5%) for foreign buyers in order to support low- and middle-income families.
- The attorney general’s office has rejected a proposal to impose restrictions on short-term rentals, allowing investors to continue buying up property.
Market Segment Analysis
Domestic market
Domestic residential property sales rose 6% compared to February last year. Declines in Famagusta (-32%) and Paphos (-30%) were offset by increases in:
- Larnaca: +64%.
- Nicosia: +8%.
- Limassol: +1%.
Overall, domestic sales were up 15% year-on-year in the first two months of 2025. While sales in Paphos and Famagusta fell by 18% and 15% respectively, they were up 43% in Larnaca, 23% in Limassol and 13% in Nicosia.
Sales to foreign buyers
Residential property sales to foreign buyers (including EU and non-EU nationals) increased by 8% in February 2025. Key figures:
- growth in Nicosia (+38%), Paphos and Larnaca (+9%), Limassol (+6%);
- decrease in Famagusta (-18%).
In the first two months of 2025, the growth in real estate sales to foreigners amounted to 10% compared to the same period last year, with positive dynamics recorded in all regions.
Sales to EU citizens
Sales to EU citizens increased by 31% in February:
- Nicosia: +41%.
- Pathos: +32%.
- Limassol: +30%.
- Famagusta: +29%.
- Larnaca: +25%.
In the first two months of the year, sales to EU citizens increased by 37% compared to the same period last year. Sales in Famagusta increased by as much as 105%, in Paphos by 52%, in Nicosia by 32%, in Limassol by 19% and in Larnaca by 11%.
Sales of real estate to citizens non-EU countries
Residential property sales to non-EU citizens fell by 1% in February compared to February last year. While sales in Nicosia, Larnaca and Limassol rose by 36%, 2% and 1% respectively, they fell by 57% in Famagusta and by 2% in Paphos.
In the first two months of 2025, property sales to non-EU citizens were virtually unchanged compared to the same period last year. While sales in Famagusta and Paphos fell by 38% and 9% respectively, they rose by 13% in Larnaca, 8% in Limassol and 2% in Nicosia.
