Local and foreign interest fuel active Cyprus real estate market

Cyprus’ real estate market started 2025 strong, with high demand from both locals and foreign buyers, especially from countries like Israel and Lebanon. Despite ongoing geopolitical tensions, interest in property investments — often in large-scale transactions — remains steady. Market stability is supported by a balance between supply and demand, with Cyprus seeing a modest 2% annual price increase in early 2025, much lower than the EU average of 5.7%.

While prices are relatively stable, affordability remains a challenge for many locals due to high living costs and limited disposable income. Foreign demand and low bank deposit returns are pushing more local investors toward real estate as a safer and more profitable investment. Limassol leads with luxury properties, Paphos has seen strong overall demand, and Larnaca is attracting buyers with smaller, more affordable apartments — especially compared to other districts.

Overall, the market is described as active and stable, offering opportunities for investors while highlighting the ongoing need to address local housing affordability. Continuous monitoring of trends and adapting to market conditions will be key to the sector’s long-term growth.