Cypriot real estate market continues to demonstrate steady interest from foreign investors. The beginning of the year was marked by notable activity from buyers from third countries. Against the backdrop of stable domestic demand, it is international capital that shapes the key market trends, strengthening Cyprus’s position as one of the most attractive destinations for property acquisition in the Mediterranean.
Updated statistics published by the department for the first time this year provide a detailed breakdown of transactions between domestic buyers, EU citizens, and citizens from third countries. Amid growing attention to foreign investment in real estate, the data make it possible to assess the demand structure and regional dynamics.
It should be noted that the statistical separation between EU and non-EU buyers has only been maintained since 2018. Before that, all foreign transactions were recorded in a single category, “Overseas Sales Contracts.” In addition, after the United Kingdom left the EU on January 31, 2020, UK citizens were reclassified into the non-EU buyer category. This automatically led to a decrease in the share of EU buyers and growth in the third-country segment in official statistics.
Domestic market: moderate growth of 1%
In January 2026, the share of Cypriot buyers amounted to 54.6% of the total number of transactions. In total, 770 sales contracts were registered with Cypriots compared to 765 in January last year, corresponding to a growth of 1%.
Regional dynamics were uneven. In Paphos, sales volume decreased by 13%, from 71 to 62 transactions. In Larnaca, the decline amounted to 12% — 130 contracts compared to 148 a year earlier. At the same time, the free areas of Famagusta demonstrated impressive growth of 78%. In this part of the island, the number of transactions increased over the year from 23 to 41. In Nicosia, sales grew by 4%, reaching 249 contracts, and in Limassol by 2%, to 288 transactions. Interestingly, despite the stability of domestic demand, the market is highly dependent on foreign investors, especially in coastal areas.
EU buyers: growth of 26%
Citizens of European Union countries accounted for 14.6% of all property sales in Cyprus in January. In absolute numbers, this is 206 contracts compared to 163 a year earlier, which means growth of 26%. The most notable increase in activity was observed in Larnaca, where the number of transactions grew by 135%, from 17 to 40. In Paphos, sales increased by 55%, reaching 101 contracts compared to 65 a year ago. At the same time, a decrease of 26% was recorded in the free areas of Famagusta, and a decline of 24% in Limassol. In Nicosia, the figures remained unchanged: 17 transactions, the same as in the corresponding month last year. Thus, strong growth in Larnaca and Paphos compensated for reductions in other districts, confirming the attractiveness of coastal property for European buyers.
Third-country citizens: +25% over the year
The most notable dynamics occurred in the segment of buyers from countries outside the European Union. In January 2026, they accounted for 30.8% of all transactions — this equals 435 sales contracts (+25%) compared to 347 a year earlier.
Growth was recorded in almost all districts. In Nicosia, the number of transactions increased by 32%, from 19 to 25. In Paphos, sales grew by 30%, reaching 155 contracts. In Larnaca, growth amounted to 26%, and in Limassol to 22%. In the free areas of Famagusta, figures remained unchanged at 14 transactions.
Paphos stands out in particular, where combined demand from EU citizens and third-country nationals exceeds the activity of local buyers. This region continues to strengthen its status as one of the key destinations for foreign investors and buyers of resort property.
Growth factors and prospects of the Cyprus real estate market
Experts link the growth in foreign demand to several factors. First, Cyprus remains an attractive jurisdiction thanks to its stable legal system. Second, strong interest in resort property is increasing amid the rapid development of the tourism sector and air connectivity.
Larnaca in recent years has demonstrated a steady inflow of investment thanks to waterfront modernization and airport expansion. Paphos, traditionally oriented toward foreign buyers, is strengthening its position through active construction of new residential complexes and villas. Limassol maintains its status as the island’s business capital and an international business hub, which supports demand in the premium segment.
Since the beginning of 2026, the Cyprus real estate market has shown confident diversification across segments. With domestic buyers accounting for 54.6%, foreigners form nearly half of all transactions. If the current dynamics continue, 2026 could become one of the most active years in recent times in terms of foreign capital inflow into Cypriot real estate.