Cyprus and real estate: growth despite risks and a new geography of demand in 2026

The real estate market in the Republic of Cyprus in 2025 confirmed its reputation as one of the most resilient in the region. Despite global uncertainty, the sector not only held its ground but also showed steady growth — both in transaction volume and value. However, behind these figures lie deeper structural changes that are already beginning to shape the future of the industry on the island.

There is growth — but it is changing shape

According to PwC Cyprus data, the total transaction volume in 2025 reached 6.5 billion euros, an 8% increase compared to the previous year. The number of transactions grew more moderately — by 4%, to 25,600.

This discrepancy in rates is an important signal: the market is growing not so much due to mass volume, but due to the rising cost of assets. This indicates a shift in interest toward more expensive and higher-quality properties, as well as a gradual increase in the buyer's "average check."

Where is it more profitable to buy property in Cyprus?

Today, the most promising destinations for investment are becoming Paphos and Larnaca, which are actively catching up with the traditional leader — Limassol. Although Limassol still holds its status as the main center of capital attraction, accumulating 41% of the total transaction value, for the first time in recent years, the city is showing a slight decline in performance.

This may indicate market saturation and a gradual redistribution of demand in favor of other regions. It is these directions, together with Limassol, that provided about 80% of the growth in purchases from foreigners.

Foreign demand: a key driver

One of the main trends of 2025 is the growth of interest from foreign investors. Demand increased by 16%, which became a significant factor supporting the market. The reasons are obvious:

• stable legal system;
• attractive tax regime;
• Cyprus's status as an "entry point" to the EU.

But there is also a less obvious factor — geopolitics. In conditions of instability in a number of regions, Cyprus is increasingly perceived as a "safe haven" for capital.

Residential real estate: a bet on apartments

The residential sector remains the foundation of the market — 4.5 billion euros or 69% of all transactions. At the same time, apartments played a key role, accounting for about 60% of the growth in total value. This reflects several trends at once:

• growth of urbanization;
• demand from expats;
• development of the "buy-to-let" format.

In fact, the market is increasingly focusing on liquid, compact, and investment-attractive properties.

Luxury segment: diversification instead of concentration

The real estate segment worth over 1.5 million euros also remains significant: 203 transactions totaling 550 million euros (8% of the market). What is interesting is the changing geography:

1. Limassol's share decreased from 76% to 61%;
2. Paphos strengthened.

This indicates a gradual redistribution of premium demand and a decrease in dependence on a single center.

Construction: a course for quality, not quantity

Construction activity shows even more indicative dynamics: the number of permits grew by 9%, and their value — by 28%. Such a gap means that developers are betting on more expensive and high-tech projects. Limassol and Nicosia remain the leaders in construction volume.

"The sector faces adaptation to new conditions. The focus is on sustainability, infrastructure, and long-term project value," notes PwC Cyprus representative Constantinos Constantinou.

How will the real estate market in Cyprus change in the near future?

The market will transform toward improving the quality of development and strengthening security measures for investors in the face of geopolitical turbulence. It is important to consider that the data provided reflects the situation before the escalation of the conflict in the Middle East. This means that the market may face new challenges:

• changes in investment flows;
• increased buyer caution;
• possible reassessment of risks.

The real estate market in Cyprus in 2025 looks strong and stable, but no longer as homogeneous as before. Growth continues, but its structure is becoming more complex: leaders are changing, the role of foreign investors is strengthening, and the importance of project quality is growing. Accordingly, experts are concerned about whether the Cyprus real estate market will be able to maintain its momentum in conditions of increasing geopolitical turbulence.

Brief conclusions:

• Total transaction volume: grew by 8% to 6.5 billion euros.
• New leaders: Paphos and Larnaca show active growth against the background of Limassol's stabilization.
• Priorities: main demand is concentrated on apartments and high-quality high-tech new buildings.
• Foreign investment: inflow of foreign capital grew by 16%.