Cyprus’s luxury real estate sector, with properties priced above €1.5 million, demonstrated remarkable resilience in 2025, although it did not surpass the record levels of 2024. According to the annual PwC Cyprus real estate report, 203 transactions were recorded in the premium segment last year. The total value of these deals reached €550 million, accounting for an impressive 8% of the total monetary turnover of the country’s entire housing sector. Notably, in 2024 this share was slightly higher at 9%, indicating a mild correction rather than a sharp decline in demand.
Limassol remains the leader, but its influence is declining
The main — and perhaps most notable — surprise was the shift in geographic distribution. Limassol, which had dominated the luxury housing segment for many years, continues to hold first place, but its share has noticeably decreased. While in 2024 the city accounted for an impressive 76% of all luxury home and apartment transactions, in 2025 this figure dropped to 61%. Analysts attribute this trend both to market saturation in Limassol and to growing investor interest in alternative coastal locations.
Paphos makes a breakthrough
While Limassol has slightly lost ground, Paphos has made a significant leap forward. The share of this western city in transactions involving properties priced above €1.5 million increased from 18% in 2024 to 28% in 2025. This means that nearly every third buyer of luxury real estate in Cyprus now chooses Paphos. The growth has been driven by infrastructure development, the emergence of new high-end residential projects, and relatively more available land for construction compared to the overheated Limassol market.
Geography of wealth: two centers of luxury
Together, the two coastal cities — Limassol and Paphos — continue to dominate the premium market, accounting for 89% of the entire segment. For comparison, their combined share was 94% in 2024. Although the figure has slightly decreased, it still confirms the main rule of Cyprus’s luxury market: buyers of high-end real estate almost always prefer sea views. The remaining share is distributed among Nicosia, Larnaca, and other regions, but their role remains secondary for now. PwC experts expect that in 2026 the trend of capital shifting from Limassol to Paphos may strengthen further, especially if new landmark developments by major developers are launched in Paphos.