Over the past 12 years, the Cyprus real estate market has undergone radical changes. While construction in 2013 was primarily focused on individual houses and small projects, by 2025, the focus had shifted towards multi-story residential complexes and large-scale residential projects. These changes reflect economic realities, the transformation of the island's lifestyle, and growing demand from foreign buyers and investors.
According to data from the Cyprus Statistical Service (Cystat), permits were issued for 1,788 new residential properties between January and April 2013. Of these, 852 were for villas, 464 were for duplexes, 401 were for apartment buildings, and 71 were for mixed-use buildings. In the same period in 2025, this figure increased by over 140% to 4,321 units. Of those, 1,003 were for villas, 367 were for duplexes, 2,789 were for apartment buildings, and 162 were for mixed-use buildings.
While high-rise buildings accounted for less than 25% of the market in 2013, by 2025, they accounted for about two-thirds, or 65%. This fundamentally changed the structure of the Cypriot real estate market.
Interest in private homes declined
For many years, Cyprus was associated with private villas and cottages, especially in coastal areas. However, since 2013, their market share has gradually declined.
From January to April of 2013, amid the financial crisis, 852 permits were issued for the construction of private residences, totaling 220,600 square meters and valued at €214 million. In 2014, there was a sharp decline: only 490 properties were built (-43%), the area decreased to 136,200 m², and the cost decreased to €128.8 million.
A slight recovery occurred in 2015–2016, with 524 and 599 permits issued, respectively. The peak of growth occurred from 2017 to 2019 with 749, 894, and 907 properties, respectively. During these years, the total area reached almost 240,000 m², and the cost exceeded €230 million. However, the 2020 pandemic reduced demand, and the number of building permits fell to 705 (-22%).
Strong growth was recorded in 2021–2022. The number of permits increased to 1,094 and 1,076, respectively. In 2023–2024, however, there was another decline, with only 975 and 935 permits issued, respectively. In 2025, there was only a partial recovery — local developers were issued 1,003 permits to build private residences. Thus, despite steady demand, cottages gradually lost their competitive edge to larger-scale projects.
This phenomenon is due to rising land prices, increased building density in cities, and changing population needs. An increasing number of young Cypriots and expats are choosing apartments over private villas, preferring modern residential complexes with good infrastructure.
Duplexes are a stable but niche segment
Duplexes have always accounted for a relatively small share of construction activity in Cyprus. Although the 2013–2014 crisis significantly reduced their number, this segment remained stable in subsequent years. By 2025, interest in them had increased moderately, but they remain a niche product in the overall market, sought mainly by families who prefer more space and privacy than an apartment offers but can't afford a separate villa.
For example, 464 duplexes with a total area of 48,300 m² and a cost of €46.5 million were built in Cyprus in 2013. However, in 2014, the number fell to 170 properties (-63%). A gradual recovery began in 2016 with 243 duplexes, followed by 316 in 2018. During this period, the value increased to €46.8 million.
After declining in 2019–2020, growth resumed in 2021–2022 with 291 and 302 units, respectively. In 2023, the number of duplexes fell to 252. However, positive dynamics were observed again in 2024–2025 with 320 and 367 duplexes worth €66.8 million. Although duplexes occupy a limited share of the market, the segment shows stability and long-term buyer interest.
There has been a surge in interest in multi-story residential complexes
The biggest changes have occurred in the multi-story residential segment. In 2013, they accounted for less than a quarter of all new properties; however, by 2025, their share had increased to two-thirds. In the first four months of 2025 alone, nearly 2,800 permits were issued for multi-apartment residential building construction.
These buildings have become a symbol of the transformation of the construction market in Cyprus. From January to April of 2013, 401 licenses were issued for such projects, with a total construction area of 56,700 m² and a cost of €47.7 million. By 2019, there was a breakthrough with 1,232 licenses issued. The total cost of these projects was €166.3 million.
In 2021, a new record was set: A total of 1,874 apartment buildings, worth €282.7 million, were constructed on the island. After a slight correction in 2022, growth continued. In 2023, 1,810 properties received permits, and in 2024, 2,389 properties did so. A historic high was reached in 2025 with 2,789 licenses issued for projects spanning 402,800 m² and valued at €441.8 million.
This growth is associated with both domestic demand and active investment from foreigners. Limassol, Nicosia, and Larnaca have become centers for the construction of modern residential complexes. Meanwhile, resort areas such as Ayia Napa and Protaras have seen the emergence of projects for short-term rental apartments and "second homes."
Mixed-use, multifunctional projects
In addition to purely residential complexes, Cyprus has also begun to actively develop mixed-use, multi-story projects. These projects combine residential apartments, commercial spaces, and infrastructure facilities. This format is especially popular in cities with an active business sector, such as Limassol and Nicosia, where there is a growing demand for modern spaces that combine housing, offices, and retail areas.
The total volume of construction in Cyprus has grown exponentially over the past twelve years, with an increase in the number of projects, their size, and their cost. While the construction industry was still reeling from the effects of the financial crisis in 2013, it showed steady growth and a clear shift from low-rise construction to large-scale projects by 2025.
In 2013, 71 projects with a total value of €28.3 million appeared on the island; however, in 2014, only two projects appeared. The situation improved in 2015 with 74 buildings and a value of €19.8 million, but the market remained volatile thereafter.
The largest growth occurred in 2020 with 103 projects and in 2024 with 210 projects. In 2025, the number decreased to 162 buildings and the cost decreased to €39.3 million. This segment remains dependent on individual large-scale developments. This trend reflects global urbanization and growing interest in modern residential complexes with infrastructure.
Prospects for the Cyprus real estate market
Experts predict that demand for apartment buildings will continue to grow in the coming years, especially in cities and tourist areas. Cyprus's continued attractiveness to foreign investors, as well as its limited land resources, will stimulate the development of more multi-story buildings.
Thus, construction activity in Cyprus between 2013 and 2025 is a clear example of how the market adapts to new economic and social conditions. Today, the island offers more and more opportunities for investors and buyers who prefer apartments in modern complexes. This opens up new prospects for growth in the construction sector.