The Cyprus property market reached a historic pinnacle in 2025, according to the latest annual industry report by PwC Cyprus. Total transaction values surged to €6.5 billion, an 8% increase over the previous year, while the volume of sales grew to 25,600 deals.
This record-breaking performance was underpinned by a robust macroeconomic environment, characterized by a 3.8% GDP growth rate and a significant drop in inflation to 0.8%. Improved credit ratings and more favorable mortgage conditions further fueled domestic and international appetite for Cypriot land and housing.
Residential Market: The Engine of Growth
Housing remains the undisputed backbone of the industry, accounting for 69% of all market activity.
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Total Sales: Approximately 15,900 units were sold, representing €4.5 billion in value.
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Apartment Dominance: High demand for modern, affordable living made apartments the primary driver, making up 42% of the total market value.
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Houses: Captured 27% of the market share, with 4,900 units sold.
A notable trend identified by PwC is the downsizing shift, where buyers are increasingly seeking smaller, more efficient properties, which has influenced both price formation and new project designs.
Regional Performance: Limassol Leads, Famagusta Surges
While Limassol remains the heavy hitter in terms of sheer value, the most dramatic growth occurred in the island’s eastern and western districts.
| District | Share of Total Value | Performance Notes |
| Лимассол | 41% | Remained #1 despite a marginal 3% dip in value. |
| Никосия | 19% | Saw a healthy 15% increase in transaction value. |
| Пафос | 19% | Recorded a strong 17% rise in value. |
| Ларнака | 16% | Value grew by 15% year on year. |
| Фамагуста | 5% | Highest growth rate in the country at +27%. |
Foreign Investment and Luxury Trends
International interest reached new heights in 2025. Foreign buyers acquired 7,255 properties, a 16% jump compared to 2024. Foreigners now account for 28% of all real estate transactions in Cyprus, with Nicosia and Famagusta seeing the most significant spikes in international participation.
Meanwhile, the high-end luxury sector (properties over €1.5 million) remained remarkably stable. The market saw 203 luxury transactions totaling €550 million, with Paphos beginning to challenge Limassol’s long-standing monopoly on the ultra-wealthy segment.
The Construction Boom and Economic Impact
The sector’s influence on the broader economy cannot be overstated. Real estate and construction accounted for 16% of Cyprus’s gross value added in 2025.
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Building Permits: New permits rose by 9%, with their total value skyrocketing by 28%, indicating a shift toward high value infrastructure and tourism projects.
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Costs: Construction costs saw a modest increase of 1.3%, returning to a slight upward trend after the previous year’s decline.
PwC concludes that while 2025 was a landmark year for the sector, these figures represent the period immediately preceding the Middle East crisis. The long term impact of regional geopolitical shifts on these record breaking trends remains to be seen in the 2026 data.
Source: www.stockwatch.com.cy