The Cyprus real estate market shattered all previous records in 2025, according to a landmark annual review released by PwC Cyprus. Total transactions soared to an unprecedented €6.5 billion, representing an 8% increase from the €6 billion recorded the previous year.
The industry’s performance was bolstered by a resilient national economy, which saw a provisional growth of 3.8% and a significant cooling of inflation to just 0.8%. Despite the stellar figures, analysts noted that the data reflects a period of high confidence prior to recent regional geopolitical shifts.
Residential Demand: The Market’s Core Engine
Housing continues to be the dominant force in the Cypriot property landscape, accounting for 69% of the total market value.
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Sales Volume: 15,900 residential units (apartments and houses) changed hands—a 7% increase.
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Apartment Surge: Apartments were the primary catalyst for growth, alone accounting for 60% of the year’s total value increase.
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Price Trends: Residential prices climbed by 5%, driven by consistent domestic demand and the lingering effects of high construction costs.
Regional Highlights: Famagusta and Paphos Lead Growth
While Limassol remains the largest market by value, other districts are rapidly closing the gap in terms of growth percentage.
| District | Value Growth | Market Share (Value) |
| פמגוסטה | +27% | Emerged as the fastest-growing district. |
| פאפוס | +17% | Showed strong momentum in both volume and value. |
| Nicosia/Larnaca | +15% | Both districts recorded double-digit gains. |
| לימסול | -3% | The only decline recorded, yet still holds 41% of the market. |
International Interest and the Luxury Segment
Foreign investment reached a new milestone in 2025, with a 16% rise in properties acquired by overseas buyers.
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Total Foreign Deals: 7,255 transactions, representing 28% of the entire market.
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Non-EU Dominance: Approximately 66% of international buyers originated from outside the European Union.
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Luxury Stability: The high-end segment (properties over €1.5m) held steady with €550 million in deals. Notably, Paphos is gaining ground on Limassol in this category, now capturing 28% of luxury transactions.
Construction Shift Toward Quality
The sector is seeing a strategic move toward premium developments. While the number of new building permits rose by 9%, the value of those permits surged by 28%. This indicates a transition toward higher-quality infrastructure, particularly within the hotel and leisure industries.
Philippos Soseilos, CEO of PwC Cyprus, remarked that the island’s resilience has been anchored by consecutive credit rating upgrades and economic growth that consistently exceeds the EU average. However, Constantinos Constantinou, Real Estate Industry Leader at PwC, cautioned that moving into 2026, stakeholders must prioritize sustainability and long-term value as the regional landscape becomes more complex.
Source: Cyprus Mail