The notion that Cyprus’s real estate market is under the control of foreign buyers is not supported by statistics. A recent analysis by Sapienta Economics shows the opposite picture: the share of transactions involving citizens of third countries is gradually declining, while the activity of Cypriot buyers themselves is growing noticeably.
According to estimates by the company’s director Fiona Mullen, in 2025 buyers from non-EU countries accounted for 26.5% of all property sale contracts on the island. For comparison, in 2023 this figure stood at 31.7%. At the same time, Cypriot citizens accounted for 59.5% of all market transactions, strengthening their position as the main driving force of demand.
Growth in domestic demand changes the market picture
Mullen notes that public attention is often focused exclusively on the growth in the absolute number of foreign buyers, without analyzing overall dynamics. Meanwhile, the number of transactions involving Cypriots is growing even faster, which distorts perceptions of the situation.
According to the economist’s calculations, from 2018 to 2025 the number of property purchases by Cypriots almost doubled—from 4,875 to 10,859 transactions—while purchases by citizens of third countries increased from 2,939 to 4,809, indicating more moderate growth. These data confirm that the main market expansion is driven by domestic buyers.
Disputes over data on actual property ownership
A separate debate was sparked by a report from the Cyprus Audit Office published in September, which suggested that the actual share of foreign ownership might be higher due to purchases made through Cypriot companies. Mullen strongly criticized this interpretation, pointing to a lack of evidence.
According to her, when doubts exist, state authorities should rely on already available transparency mechanisms. In particular, she proposes using data on ultimate beneficial owners and providing the Land Registry with anonymized information on the citizenship of real property owners, which would allow for more accurate statistics.
Higher prices in transactions with foreigners and market pressure
Despite the declining share of foreign buyers, their impact on prices remains significant. According to the statistical service Cystat, in all Cypriot cities except Nicosia, transactions with foreigners exceed those with Cypriots in terms of value. On average, foreign investors pay a higher price per square meter of housing.
This factor, Mullen emphasizes, contributes to overall price growth and affects all market participants, including local buyers. Under conditions of limited supply, this intensifies the housing affordability problem, especially for young families.
Affordable housing as a key challenge for Cyprus
The economist warns that the housing issue is gradually turning into a serious socio-political problem. In Cyprus, a gap is emerging between a more affluent older generation, which is not interested in higher tax burdens, and younger Cypriots, who increasingly cannot afford to purchase their own homes even with stable incomes.
Referring to economist David McWilliams, Mullen calls the current situation a “ticking bomb.” In her view, if the affordable housing problem is not addressed, it could lead to growing dissatisfaction and increased support for anti-system and anti-democratic political movements, a trend already observed in several European countries.
Overall, Sapienta Economics data show that Cyprus’s real estate market is developing primarily due to domestic buyers. However, without systemic solutions in housing policy, rising prices and social tension could become a serious challenge for the economy and society in the coming years.