In 2025, Cyprus’s real estate market showed strong growth, with Paphos becoming the main attraction for foreign buyers. This coastal region proved to be the most sought-after among overseas investors, outperforming other cities on the island.
According to the latest data from PwC analysts, foreign buyers’ interest in property in Cyprus increased significantly. Over the year, more than seven thousand transactions involving overseas investors were completed, noticeably more than in the previous year. As a result, almost every third property purchase on the island is made by foreigners.
Why Paphos Became the Leader
Paphos ranked first in the number of transactions involving foreigners, accounting for around one third of all such purchases in Cyprus. This result made the region the absolute market leader.
The city’s popularity is explained by several factors at once. It combines a mild climate, developed tourist infrastructure, and attractive prices compared with other coastal regions of Europe. For many buyers, Paphos is not only a comfortable place to live by the sea, but also a profitable investment with potential for capital growth. Another advantage is the strong demand for rentals, especially during the tourist season, which makes property investment here particularly attractive.
Overall Picture of the Real Estate Market
Overall, Cyprus’s real estate market reached record levels in 2025. The total value of transactions amounted to around €6.5 billion, demonstrating sustained growth. Residential properties account for the main share, especially apartments, which remain the most in-demand type of real estate.
Strong interest continues in coastal cities such as Limassol and Larnaca, but Paphos became the key growth driver. Together with Limassol, it accounts for a large share of all transactions involving foreigners on the island.
Who Is Buying Property in Cyprus
The majority of foreign buyers still come from countries outside the European Union. Their interest in Cyprus remains consistently high thanks to its favorable tax regime, quality of life, and investment opportunities. At the same time, experts note that the market is becoming increasingly global, while the geography of buyers continues to expand.
Despite the growth, the market faces several challenges. Limited housing supply continues to support high prices for both purchases and rentals. However, gradual stabilization may be possible in the coming years if the construction of new properties increases.
External factors, including geopolitical instability in the region, are also having an additional impact. This creates some uncertainty that may affect demand and investment activity. Nevertheless, Paphos has established itself as one of the most promising real estate markets in Cyprus, continuing to attract investors from around the world and shaping the future of the island’s property sector.