In the first quarter of 2025, Paphos became the leader in sales of luxury homes priced at over €500,000. This trend indicates the ongoing transformation of the Cyprus real estate market.
According to the quarterly report by Cyprus Sotheby's International Realty, the sector is undergoing qualitative changes reflecting a transition to a more mature and informed phase of demand.
The first quarter of 2025 marked a new milestone in the development of the Cypriot real estate market. The surge of interest seen after the pandemic has given way to a period of strategic recalibration. "This is not a downturn, but a move towards sustainability and selectivity," commented Anastasia Gianni, the company's CEO.
From January to March 2025, 3,558 real estate transactions were registered in Cyprus, a 5% increase from the same period the previous year. The total value of these transactions reached an impressive €976 million, with about 60% (€584 million) falling into the medium and high price categories, primarily residential real estate.
While Limassol led in total sales in the medium and high segments with 593 transactions, Paphos surpassed it in truly expensive real estate. There, 99 villas priced at €500,000 or more were sold, accounting for 57% of all properties in this category nationwide. This trend highlights the region's growing appeal to wealthy foreign investors who prefer privacy and a high quality of life.
Larnaca, in turn, continues to gain momentum, confidently transforming from a "sleeping beauty" into a center for modern residential investment. In the first quarter, 823 deals were concluded in the coastal city, 192 of which were in the medium and high price segments. Buyers were mainly interested in new, energy-efficient apartments.
Nicosia showed steady demand from both locals and foreign buyers. There were 759 deals in the capital, 185 of which were in the mid- and high-end segments. Buyers in Nicosia value stable returns, developed infrastructure, and a favorable business environment.
Finally, Famagusta's free areas continue to be popular among those seeking a quiet lifestyle near the sea. During the first quarter, 168 sales contracts were signed here, 19 of which were in the mid- and high-end categories. It is worth noting that ready-to-move-in homes in coastal areas were in high demand in this part of Cyprus.
Gianni mentioned that the above data does not fully reflect reality.
Some luxury real estate transactions are conducted privately, outside of public records. This is typical of properties with unique architecture, views, and locations," emphasized the head of Cyprus Sotheby's International Realty.
She added that modern buyers in the premium segment have become much more discerning. They prioritize confidentiality, quality, and the property's potential over square footage.
It is not the price that is changing the market, but rather the priorities of the buyers themselves. They are shaping the future of real estate in Cyprus today," concluded Gianni.