Are Non-EU Nationals Truly Taking Over Cyprus’ Property Market?

Recent discussions suggest that foreign buyers, especially non-EU nationals, are dominating Cyprus’ real estate market. However, a detailed analysis by Fiona Mullen, director of Sapienta Economics, challenges this popular assumption.

Fact vs. Perception: The Real Numbers Behind Property Sales

According to Mullen’s research, non-EU nationals made up just 26.5% of property sales contracts in 2025, a decline from 31.7% recorded in 2023. Meanwhile, Cypriot buyers held the largest share, accounting for 59.5% of purchases last year. This data highlights a steady rise in domestic demand, debunking claims of overwhelming foreign dominance.

Between 2018 and 2025, sales to Cypriots surged from 4,875 to 10,859—almost doubling—while non-EU buyer numbers increased but at a slower pace, from 2,939 to 4,809. This growth in local purchases points to a balanced, albeit competitive, market landscape.

Addressing Misconceptions and Misinformation

Mullen criticizes speculative reports, such as a recent audit office publication that suggested foreign ownership might be underestimated due to acquisitions through Cyprus-registered companies. Without concrete evidence, such claims risk misleading policymakers and buyers alike.

She advocates for the use of existing ultimate beneficial owner records to give Cyprus’ land registry anonymized nationality data, enabling a more accurate understanding of ownership dynamics. This transparency would empower parliament to make informed decisions about possible regulatory changes.

The Impact of Foreign Buyers on Urban Property Prices

Though Cypriots dominate overall purchases, Nicosia aside, data from Cystat reveals that in many cities, foreigners outpace locals in buying residential properties. Additionally, non-Cypriots tend to pay higher prices per square meter, indicating that foreign investment is a factor in pushing prices upward across the market.

Housing Affordability: A Growing Challenge

One unavoidable reality is that affordability remains a pressing concern. An aging population, often asset-rich, shows reluctance to accept higher property taxes, while younger, less affluent buyers find it increasingly difficult to enter the market. Economist David McWilliams refers to this as a “ticking time-bomb” that could fuel social and political tensions.

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Conclusion

The Cyprus property market continues to see both foreign and local buyers actively investing. Claims of non-EU nationals overshadowing the market are not supported by the latest data. Transparency and evidence-based policies remain essential to balance interests, ensure affordability, and sustain a healthy real estate sector for all stakeholders.