The Cyprus property market kicked off 2025 on a high note, with property sales contracts deposited at Land Registry offices surging by 21% in January compared to the same period in 2024. According to data from the Department of Lands & Surveys, all districts reported growth, highlighting strong investor confidence and sustained demand.
District-Wide Performance
Famagusta led the way with a remarkable 40% increase in property sales, followed by Limassol at 36%. Larnaca recorded a solid 20% rise, while Nicosia saw a 13% increase. Paphos, although experiencing the smallest growth, still registered a 5% uptick in contracts filed.
This upward trend reflects a combination of economic stability, foreign investment, and local demand, contributing to a robust real estate sector. Limassol remains a hotspot for business and financial investments, while Famagusta’s surge signals renewed interest in its coastal properties. Infrastructure projects in Larnaca may have played a role in boosting sales, and Nicosia continues to be a stable market due to its status as the capital.
Domestic vs. Overseas Market Trends
Sales to Domestic Buyers
Property transactions within the domestic market rose by 27% in January 2025 compared to January 2024, making up 60% of total sales. The growth was evident across all districts:
Sales to International Buyers
Sales to foreign buyers, including both EU and non-EU investors, saw a 12% increase year-on-year. While all districts recorded growth except Nicosia (-10%), the biggest gains were:
EU and Non-EU Buyer Preferences
EU Citizens
Interest from EU nationals soared by 44%, representing 13% of all property sales for the month. Key district trends include:
Non-EU Citizens
Transactions from non-EU buyers saw a modest 1% increase, accounting for 27% of total sales. While declines were recorded in:
These were balanced by gains in:
Impact of Foreign Investment and Market Challenges
Despite the positive trajectory, concerns have been raised over rising property prices due to increased foreign investment. Lawmakers fear this trend could make homeownership more difficult for local buyers, particularly young couples. Similar challenges are prompting regulatory changes across Europe. Finland is considering stricter property ownership laws for national security reasons, while Greece enforces special permits for purchases in border areas. The UK maintains taxation and anti-money laundering safeguards, and Spain is contemplating higher property taxes for non-EU buyers, potentially doubling existing rates.
Market Outlook
With foreign buyers continuing to dominate areas like Paphos—where non-Cypriots accounted for nearly 75% of all transactions—the market remains a key attraction for international investors. If current trends persist, Cyprus could see another strong year in real estate, further cementing its status as a prime destination for both local and global property buyers.
Source: Cyprus Property News