A new report by the Cyprus Audit Office, published on Tuesday 23 September, revealed that in 2024, 27.35% of all real estate transactions on the island were conducted by buyers from third countries. However, experts suggest that this figure may be an underestimation, as some transactions are carried out through companies registered in the EU or EEA, which excludes them from the 'foreign' category.
Growth in transactions and changing dynamics
In recent years, the interest of foreign citizens in Cypriot real estate has grown considerably. While 873 transfers of ownership rights to real estate were registered in favour of non-EU citizens in 2020, this figure reached 2,511 in 2024 — almost a threefold increase. A total of 15,797 sales contracts were signed in Cyprus in 2024. Of these:
- 61% were for Cypriot citizens,
- 12.07% were for EU citizens,
- 27.35%, or 4,321, were for citizens of third countries.
Geography of demand and who is buying
Regional data shows that foreigners are most active in purchasing residential and commercial real estate in Paphos, accounting for 44.19% of all sales there. The figure was 33.85% in Larnaca, 26.71% in the free areas of Famagusta, 26.51% in Limassol, and 7.68% in Nicosia. The main buyers from 2020 to 2024 were citizens of China (16%), Lebanon (16%), Russia (14%) and Israel (10%).
Legislative features and 'loopholes'
Previously, the law permitted foreigners to purchase only one property for residential or business purposes. However, the 2011 amendments excluded companies registered in EU or EEA countries from the category of 'foreign persons'. Consequently, such companies can purchase an unlimited number of properties, even if they are controlled by nationals of third countries.
In 2014, a new decree permitted foreign citizens to purchase up to two properties, which could be two residential units or a combination of residential, office, and retail space. The Audit Service report notes that the current system lacks objective mechanisms for verifying the income of foreign buyers and the origin of their funds. Additionally, there is no regulation governing the time frame for reviewing applications, which averages 3-4 weeks.
Market outlook and forecasts
Experts predict that demand from foreign buyers will remain high in 2025. In the first few months of the year, more than 26% of transactions were with citizens of countries outside the EU. If buyers from the EU (excluding Cypriots) are included, almost 40% of all transactions are made by foreigners.
This confirms Cyprus's status as one of the most attractive destinations for real estate investment in the Eastern Mediterranean. However, economists warn that growing interest from foreigners is pushing prices up, making housing less accessible for the local population.