Data recently released by the Cypriot government confirms the steady increase in foreign interest in real estate.
Many experts believe that this is driving the sharp rise in housing prices, particularly in popular cities such as Limassol. Citizens of Russia, Greece, the United Kingdom, Israel and China are particularly active in the market.
This information was made public following a request from Alexandra Attalides, an MP from the Volt party. In November 2023, she wrote to the Minister of the Interior requesting a breakdown of property buyers. She received a response in the form of a table containing statistics by district, showing the number of properties, registered sales contracts and actual ownership (title) by nationality.
As expected, Cypriots remain the largest property owners in all districts. But it gets more interesting. In Nicosia, the leading foreign buyers are citizens of Greece, the United Kingdom, Australia, Romania, the United States, Bulgaria, Lebanon, Russia and China. In Limassol, where foreign demand is particularly high, the leading buyers are Russian, British, Israeli, Greek, Romanian, Chinese, Ukrainian, German and American. A similar pattern emerges in Paphos, Larnaca and Famagusta.
According to Pavlos Loizou, director of the consultancy firm Ask Wire, the published data is interesting, not least because this is possibly the first time that information on nationality has been officially disclosed. However, the tables do not indicate the cost of real estate, an important factor in assessing real demand and market impact.
Loizou notes that the discrepancy between the number of transactions and the actual registration of property rights is particularly pronounced in Limassol. Of the 2,561 properties purchased by Russians, only 1,292 have been registered. This suggests that almost half of these properties are still under construction.
There are other serious nuances: many foreigners buy property through Cypriot companies, so in official statistics, these purchases are recorded as having been made by a ‘Cypriot’. Also, if the transaction is formalised through the transfer of shares in the company that owns the property, it does not appear in the Land Department's register at all.
Interestingly, Israelis have become particularly active in Larnaca, where they now rank fourth in terms of the number of transactions. Of the 1,406 properties purchased by Israelis, 481 have registered titles. These are mainly large plots of land intended for the construction of resorts, spa complexes, and gated communities. They are actively buying property in Pyla, Ormida and Pervolia, which are close to the airport and the synagogue. According to Loizou, the main reasons for this increased interest are regional instability and a desire to invest in safer jurisdictions. In addition, Larnaca remains the most affordable coastal city.
Growing interest from third-country nationals is also linked to Cyprus's Golden Visa programme, which replaced the controversial Golden Passport scheme.
Since 2023, Cyprus has issued around 5,800 visas to investors who have invested at least €300,000 in real estate or businesses. However, local officials have already expressed concern. An audit of 28 cases by the Auditor General found that 24 investors did not actually reside in Cyprus. Under the old scheme, a purchase agreement is submitted, a visa is issued, and then the transaction is cancelled. While the Ministry of the Interior has acknowledged the need to tighten controls, there has been no talk of completely closing the programme.
Such visas (officially known as Category F residence permits) are only issued by law if the applicant has an annual income from abroad of at least €9,568 (plus €4,613 for each dependent) and has no criminal record. However, holders of such visas are not entitled to work in Cyprus.
Thus, although the published data is incomplete, it confirms one simple truth: foreigners continue to invest actively in Cypriot real estate, significantly impacting the market. However, growing demand brings growing risks for both buyers and the island's economy as a whole. Cyprus will have to strike a balance between being attractive to investors and ensuring social justice.