The Cyprus real estate market in 2025 is expected to be active and diverse. Despite global economic and political challenges, investors are cautiously optimistic and willing to do business. According to a recent report by the international consulting firm PwC, the range of investment properties is expected to grow, as is interest in alternative assets, and the market is expected to stabilize after several turbulent years.
Investment trends and new directions
In the near future, investors will actively seek opportunities beyond traditional assets. In addition to residential and commercial real estate, special attention will be given to:
- Infrastructure projects, including digital and energy;
- Facilities related to the health and longevity industry;
- Modern projects for the elderly will also be of interest.
PwC notes that the housing market for older generations has great potential. According to the United Nations, the number of people over 80 will almost triple by 2050, creating huge demand for specialized housing.
Mergers, acquisitions, and new strategies
The real estate sector continues to integrate with other industries, especially infrastructure and digital technologies. Major players are entering the joint investment market, forming consortia, and developing hybrid projects.
The role of insurance companies as a source of capital is also growing. Private investors and funds are actively cooperating with insurance companies to compensate for the reduction in financing from traditional banks.
Outlook for the near future:
According to PwC, the main trends in the real estate market include:
- An increase in mergers and acquisitions thanks to low interest rates and the availability of capital.
- Growing interest in wellness properties, residential complexes for the elderly, and environmentally friendly projects;
- Competition for infrastructure assets, especially those related to AI, data centers, and energy, is also growing.
While the market remains sensitive to global instability, experts overall predict a recovery. For investors and developers, 2025 will be a time to expand strategies and actively seek new opportunities.