The outgoing year 2025 has become one of the most successful in recent decades for the Cyprus real estate market. Industry representatives report a record number of property sale transactions, actively concluded by both Cypriot citizens and foreign investors across all regions of the island. According to data from the Land Department, between January and November 2025 a total of 16,455 sale contracts were registered, representing a 13.8% increase compared to 2024, when 14,458 transactions were recorded. Experts are confident that the momentum built up over recent years will continue into 2026.
Limassol, Nicosia, and Growth Nationwide
Limassol continues to hold the leading position in terms of sales volume. The city recorded 5,085 contracts compared to 4,604 the previous year, reflecting growth of 10.4%. Nicosia showed even stronger dynamics, increasing the number of transactions by 16.7% to 3,749. Larnaca also strengthened its position, reaching 3,598 transactions compared to 3,093 in 2024, corresponding to growth of 16.3%. In the free areas of Famagusta, the number of transactions rose from 708 to 798, an increase of 12.7%, while Paphos recorded growth of 13.5%, with 3,225 transactions compared to 2,841 a year earlier. This geographic spread confirms that interest in Cypriot real estate remains strong across all key regions.
Price Stabilization and Early Signs of Rental Decline
According to local experts, the 2025 figures are the highest since 2022, when the market began to recover after the Covid pandemic. The cost of construction materials has stabilized, leading to price leveling in the housing market and a slowdown in rent increases. Moreover, in the second half of 2025, a real correction in rental prices was recorded for the first time in several years. New two-bedroom apartments that were renting for around €1,200 three to four years ago are now being offered at approximately €1,000 per month. Experts attribute this to a significant number of new apartments and compact houses entering the market, which has intensified competition among landlords.
Housing Prices in Different Cities
Limassol remains the most expensive market in the country, followed by Paphos, Larnaca, Nicosia, and then the free areas of Famagusta. According to expert estimates, a new two-bedroom apartment in Limassol can be purchased for around €340,000, in Paphos for about €320,000, in Larnaca for €260,000–€280,000, and in Nicosia for approximately €240,000. These figures confirm that despite stabilization, the market remains attractive both for investment and for owner-occupied housing.
Return of Purchasing Power Among Cypriots
The real estate market has maintained steady growth for the third consecutive year, with sales volumes continuing to increase year after year in almost all segments. Cyprus remains an attractive destination for foreign investors and those seeking a second home. At the same time, purchasing activity among local residents has noticeably strengthened. Lower interest rates and more active lending by banks—especially for owner-occupied housing—have played a key role in the return of demand from Cypriots. Notably, there is currently no significant difference between the types of properties purchased by foreigners and Cypriot citizens, as their preferences largely coincide.
Outlook for 2026 and the Impact of the European Agenda
Marinos Kinegiro, Chairman of the Council of Real Estate Agents Registration, considers 2025 a year of stabilization and expects transaction volumes in 2026 to remain at comparable levels, with the possibility of further growth. From January 1, 2026, Cyprus will assume the Presidency of the Council of Europe, and experts predict that this will improve the overall investment climate and buyer sentiment, providing additional stimulus to the market.
According to him, prices in 2025 generally remained at 2024 levels, with increases ranging between 5% and 10%. As a result, the Cyprus real estate market enters 2026 in a strong position, demonstrating resilience, attractiveness to investors, and a gradual normalization of prices and rental rates, making it one of the most stable and promising markets in the Eastern Mediterranean region.