Cyprus continues to strengthen its position as one of the most attractive real estate markets in the Mediterranean. Thanks to its membership in the European Union, favorable tax system, stable economy, and strategic location between Europe, Asia, and the Middle East, the island remains a key destination for international investors. In recent years, interest in both residential and commercial property, as well as new development projects, has grown significantly.
The statistics confirm this trend. In 2025, the total value of real estate transactions in Cyprus reached €6.5 billion, an increase of 8% compared to the previous year. Around 25,600 property transactions were completed during the year, making it one of the strongest performances on record. Despite global economic uncertainty and geopolitical risks, the Cypriot property market continues to demonstrate steady growth.
Foreign buyers account for nearly one-third of all transactions
International demand remains one of the key drivers of the market. In 2025, foreign buyers accounted for approximately 28% of all real estate transactions, while purchases by non-residents increased by 16% compared to the previous year.
Overseas investors show the strongest interest in coastal regions. Limassol remains the island's business hub and the leader in the luxury property segment. Paphos attracts buyers with its relaxed lifestyle, developed tourism infrastructure, and strong rental demand. Larnaca is rapidly developing thanks to the large-scale redevelopment of its port and marina, the construction of new residential projects, and major transport infrastructure improvements. Experts note that foreign buyers increasingly view Cyprus not only as a holiday destination but also as a location for long-term investment and wealth preservation.
Which nationalities are buying property in Cyprus?
Despite changes in the international political landscape and sanctions introduced in recent years, the Russian-speaking community continues to play an important role in the Cypriot property market. This is particularly evident in Limassol, where international companies remain active, many entrepreneurs are registered, and thousands of Russian-speaking families reside. Premium residential developments priced above €1.5 million continue to attract affluent buyers who see Cyprus as a secure jurisdiction within the European Union.
Interest in Cypriot real estate from Israeli buyers has also grown significantly in recent years. The short distance between the two countries, convenient air connections, similar climate, and high level of safety make the island an attractive destination for purchasing second homes and investment properties. Apartments and villas along the coast, as well as properties suitable for short-term rentals, are particularly popular. Ongoing instability in the Middle East has also encouraged some investors to diversify their assets.
The number of buyers from Turkey is also increasing. High inflation, currency instability, and the desire to preserve capital are encouraging many investors to look for alternative markets. Cyprus has become one of the most accessible options thanks to its geographical proximity and comparatively lower property prices than those found in many Western European countries.
Developers continue launching new projects
Growing international demand is stimulating the construction sector. Developers are actively acquiring land and launching new residential projects aimed primarily at overseas buyers.
In 2025, the value of building permits issued increased by 28%, reflecting higher investment in premium-quality developments. More companies are focusing on modern residential complexes featuring energy-efficient technologies, swimming pools, fitness facilities, co-working spaces, and well-developed internal infrastructure. Short-term development financing is also playing an increasingly important role, allowing developers to acquire land and begin construction before securing long-term bank financing.
Another factor supporting the attractiveness of Cypriot real estate is the stability of the rental market. Long-term rental yields currently average between 4% and 7% per year. In popular tourist destinations, where short-term rentals are thriving, returns can reach as much as 10%.
The growth of domestic tourism, the increasing number of expatriates, employees of international companies, and students continues to support strong rental demand throughout most of the year. This is also driving the expansion of the professional property management sector, including residential complex maintenance and the management of properties listed on short-term rental platforms.
Apartments remain the preferred investment
Apartments remain the most sought-after type of property. This segment accounted for around 60% of the overall growth in transaction value during 2025. Buyers favor apartments because of their more affordable prices, ease of management, and strong liquidity. They are generally easier to rent out and resell, particularly in major cities and resort areas.
Demand for modern residential developments continues to grow among both international investors and local buyers, providing additional support to the new-build market.
Experts believe that the fundamentals of the Cypriot property market remain strong. Limited coastal land availability, sustained foreign demand, infrastructure development, and the construction of new roads, marinas, universities, and business centers continue to support property values. At the same time, the sector is closely monitoring rising construction costs, changes in interest rates, and geopolitical developments that could influence the pace of market growth.
Nevertheless, most analysts agree that Cyprus retains significant long-term growth potential, and international investor interest is expected to remain one of the key drivers of the island's real estate market in the years ahead.