Cyprus Property Market 2025: Steady Prices and Robust Demand

The Cyprus real estate sector has started 2025 on a strong footing, maintaining the resilience and solid interest that defined last year. According to Marinos Kineyirou, President of the Cyprus Real Estate Agents Registration Council, demand is vibrant not only among local buyers but also from international investors, notably from non-EU countries including Israel and Lebanon. Despite lingering geopolitical uncertainties, these markets continue to commit significant capital to Cyprus real estate.

Balanced Supply Supports Market Stability

One of the market’s key strengths remains the diverse and substantial supply of properties available. This extensive selection accommodates a variety of budget ranges and buyer preferences, which underpins the market’s steady performance. Unless significant global disruptions occur, the outlook suggests a consistent pace of transactions throughout 2025, with prices holding firm due to the equilibrium between supply and demand.

Measured Price Growth Compared to Europe

Latest figures from Eurostat reveal Cyprus is experiencing a modest rise in property prices—about 2% year-on-year in Q1 2025—substantially below the EU average of 5.7% and the Eurozone’s 5.4%. This indicates a more sustainable, less inflated housing market compared to many European counterparts.

What’s Fueling the Demand?

Although rising prices present affordability challenges for many local buyers, persistently low mortgage rates provide some relief. However, broader inflationary pressures continue to squeeze household budgets, complicating home ownership for first-time buyers. Meanwhile, foreign investment remains a significant driver, alongside domestic investors turning to real estate as a safer asset class amid historically low bank deposit returns.

Clearing Up Market Misconceptions

There is a common misconception that licensed estate agents inflate property prices artificially. In reality, agents operate to negotiate the best terms for their clients and facilitate fair market transactions. Pricing is ultimately determined by property owners and the natural supply-demand balance.

Regional Market Insights

• Limassol continues to lead in luxury and high-end property transactions.
• Paphos has experienced growing demand from both local and overseas buyers over the past two years.
• Larnaca is attracting interest in smaller homes, such as one- and two-bedroom apartments in suburban areas, where prices remain more accessible compared to larger cities. This trend appeals to buyers from Nicosia and Limassol searching for better value options.

Looking Forward

The Cyprus property arena remains active and stable, presenting solid opportunities for investors while continuing to wrestle with local affordability issues. Constant market observation and adaptability are crucial to maintaining this momentum throughout 2025.

For buyers interested in exploring opportunities, including more budget-friendly options, you may want to check out our Cheap Apartments for Sale Cyprus or browse through Plots of Land for Sale for those looking to build.

Marinos Kineyirou MRICS, President of the Cyprus Real Estate Agents Registration Council