The Cypriot real estate market is demonstrating significant resilience and stability in 2025, characterized by strong demand from both foreign and domestic buyers and a more measured pace of price growth compared to the rest of Europe. However, this stability is contrasted by growing concerns over housing affordability for the local population.
Key Market Drivers and Trends
According to an analysis by Marinos Kineyirou, President of the Cyprus Real Estate Agents Registration Council, the market’s vigor is fueled by multiple factors. International investors, particularly from non-EU markets such as Israel and Lebanon, continue to show strong interest, undeterred by geopolitical developments. Concurrently, local buyers are increasingly turning to real estate as a safe-haven asset, seeking better returns than those offered by low-interest bank deposits.
This robust demand is being met by a healthy supply of properties across the island, which Kineyirou identifies as a key factor underpinning price stability.
Price Growth in European Context
Data from Eurostat for the first quarter of 2025 supports the assessment of a stable market. Housing prices in Cyprus rose by 2% on a year-on-year basis, a figure substantially lower than the EU average of 5.7% and the Eurozone average of 5.4%. This suggests a more sustainable and less inflationary trajectory for the nation’s property sector.
Despite this moderate growth, high property values combined with broader cost-of-living pressures are creating significant challenges for local residents. Even with gradually easing mortgage rates, home ownership is becoming increasingly difficult for many Cypriot households.
Regional Market Highlights
The property market exhibits distinct characteristics across different districts:
- Лимассол maintains its position as the leading market for high-end and luxury properties.
- Пафос has experienced a marked increase in demand from both domestic and overseas investors over the past two years.
- Ларнака is attracting heightened interest in smaller units, such as one and two-bedroom apartments, as its prices remain more competitive compared to other major cities.
Looking ahead, market sentiment suggests purchasing activity will remain sustained throughout 2025, barring any major external shocks. Kineyirou clarified that property prices are ultimately set by owners and shaped by the fundamental forces of supply and demand, rather than being artificially inflated by licensed agents.
Source: Cyprus Property News