The residential real estate market in Cyprus continues to show stability and confident growth. According to the latest Insights Report for Q3 2025, published by Cyprus Sotheby’s International Realty, demand for housing remains high among both local buyers and foreign investors. The total number of transactions across the island increased by 6% compared to the same period last year, confirming the sector’s resilience despite global economic fluctuations.
Growth in Transactions and Interest in Modern Developments
New construction remains the key driver of the market. The secondary market is facing a shortage of quality properties, pushing buyers toward modern, well-designed projects with thoughtful infrastructure. The strongest increase in activity is seen in the mid- and high-priced segments:
Sales of houses priced from €500,000 grew by 26%
Apartment transactions priced from €200,000 increased by 10%
These figures reflect the broader trend: Cyprus is becoming an increasingly attractive destination for long-term investment, especially with upcoming changes in tax legislation that may reduce overall costs associated with real estate transactions.
Which Regions Are Leading?
- Limassol remains the country’s main transaction hub, recording 987 sales in Q3 2025.
- Despite slight price adjustments in the premium segment, the city continues to be the most active investment region.
- Paphos follows closely with 961 transactions, maintaining strong interest from foreign buyers.
- Although average apartment prices rose by 1% and house prices fell by 3%, Paphos remains appealing thanks to its balance of high quality and moderate pricing.
- Larnaca continues to strengthen its reputation as the market’s rising star, with 907 transactions and stable prices.
- Large-scale redevelopment projects near the port and marina are transforming it into a new coastal hub.
- Meanwhile, Nicosia shows steady growth, especially in the segment of modern urban houses and apartments.
- Housing prices in the capital have risen significantly — by 11% year-on-year.
The Market Enters a New Phase: Quality Over Square Meters
The report highlights that the Cypriot real estate market is transitioning into a more mature stage of development.
Buyers are no longer focused solely on square footage — they prioritize:
- quality of life
- infrastructure
- energy efficiency
- long-term sustainability and value of the property
Developers are responding by raising construction standards and integrating modern architectural solutions.