Cyprus Property Market Sees Strong Start in 2025

The Cyprus property market has begun 2025 on a high note, with property sales contracts registered at Land Registry offices increasing by 21% in January compared to the same period last year, according to data from the Department of Lands & Surveys.

Growth Across All Districts
Property sales have risen across all major districts, with Famagusta leading the trend with an impressive 40% surge. Limassol followed with a 36% increase, while Larnaca recorded a 20% rise. The capital, Nicosia, experienced steady growth at 13%, and Paphos, though seeing the smallest rise, still posted a 5% increase in contracts deposited.

Key Drivers Behind the Market Growth
The strong start to the year reflects investor confidence and sustained demand for real estate in Cyprus. Several factors contribute to this positive momentum, including:

  • Economic Stability: A favorable economic environment is encouraging both local and international investments.
  • Foreign Investment: Cyprus remains a popular choice for overseas buyers looking for real estate opportunities.
  • Infrastructure Developments: Projects in Larnaca and other regions are enhancing property appeal.
  • Market Diversification: Different regions attract different types of buyers—Limassol continues to be a hotspot for business professionals, while Famagusta’s coastal properties are gaining renewed interest.
  • Concerns Over Foreign Buyers and Rising Property Prices
    Despite the booming market, MPs have expressed concerns over the increasing number of foreign buyers, which has contributed to rising property prices, making it more challenging for local residents, particularly young couples, to afford homes.

    International Property Market Trends

    Cyprus is not alone in considering regulatory measures to manage foreign property ownership. Several European countries are reviewing or implementing restrictions:

  • Finland is considering tighter property regulations due to national security concerns.
  • Greece requires special permits for property purchases in border regions.
  • The UK enforces taxation and anti-money laundering safeguards on foreign investors.
  • Spain is exploring new taxation measures to address its housing crisis, including a proposal to double property taxes for non-EU buyers.
  • Outlook for 2025
    With the current trajectory, the Cyprus real estate market is poised for another strong year, reinforcing its position as a key destination for both local and international buyers. However, discussions on regulatory adjustments to maintain housing affordability and sustainable market growth are likely to continue.

    Source: www.news.cyprus-property-buyers.com

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