The Cyprus real estate market is demonstrating impressive stability, maintaining high interest from local and foreign buyers alike. The year began with dynamism, continuing the trends of the previous period when the number of transactions and investment activity increased. Investors from Israel and Lebanon, in particular, are active and undeterred by the region's geopolitical challenges. In fact, they view Cyprus as a safe haven for capital investment, including high-end projects.
Supply and prices remain under control
A key factor supporting the market is the balanced availability of housing. Today, Cyprus offers a wide range of properties to meet the diverse needs of buyers. According to Eurostat, house prices in the country rose by only 2% year-on-year in the first quarter of 2025. For comparison, the EU average was 5.7%, and the Eurozone average was 5.4%. These figures confirm that Cyprus is following a more moderate path by avoiding the sharp price increases seen in other European countries.
What is supporting demand?
Although prices remain relatively high for locals, the market is being fueled by foreign buyers and domestic investors. Despite lower mortgage rates, the overall high cost of living limits the options available to Cypriots. At the same time, low interest rates on bank deposits are prompting more citizens to invest in real estate, making it an attractive alternative in terms of returns and capital preservation.
Contrary to popular belief, housing prices are not inflated
The common belief that housing prices are artificially inflated by agents is false. Realtors strive to conclude deals on the most favorable terms for their clients. The real value is determined by the market—the interaction of supply and demand, as well as the owners' willingness to sell at certain prices.
Different regions have different trends
Looking at the market by region, Limassol continues to lead in terms of the number of expensive and premium properties. Paphos is strengthening its position thanks to interest from foreign and local investors. Larnaca is becoming the "new star" of the market. Demand is growing for compact apartments in the suburbs, making the city attractive to buyers looking for affordable options. Despite price increases over the past three years, housing in Larnaca remains more affordable than in other coastal cities.
Forecast for the coming months
Unless there are serious external shocks in the near future, market activity will remain high throughout 2025. Demand will be supported by foreign investors and domestic buyers, and prices are expected to remain stable. Experts note that today, the Cypriot market combines investment appeal with moderate price dynamics, setting it apart from most EU countries.