The Cypriot real estate sector has demonstrated remarkable resilience and growth, achieving a record total transaction value of EUR 6.5 billion in 2025. This marks an 8% increase from the previous year, underscoring the market's robust performance.

Residential properties have been the primary driver of this growth, accounting for EUR 4.5 billion of the total transaction value. Notably, apartments have led the market, constituting approximately 60% of the overall increase in value terms.

Foreign interest in the Cypriot property market has also been significant, with demand from international buyers increasing by 16% in 2025. The coastal districts of Paphos, Larnaca, and Limassol together accounted for about 80% of the growth in properties acquired by foreigners during the year.

The luxury property segment has maintained a steady presence, with 203 transactions totaling EUR 550 million, representing 8% of the sector's total value. Limassol continues to dominate the high-end residential property market; however, its contribution decreased from 76% in 2024 to 61% in 2025. Paphos experienced an increase in high-end residential property transactions during the year, representing 28% of the total luxury segment, compared to 18% in 2024.

In terms of development trends, the number of new building permits increased by 9% from January to October 2025, with their total value rising by 28%. This indicates a shift towards higher-quality, higher-value projects. Limassol and Nicosia remained leaders in terms of permitted project area. Significant growth was recorded in hotel and leisure developments, whereas retail and warehouse developments both declined during this period.

Overall, the Cypriot real estate market has demonstrated strong momentum in 2025, driven by increased transaction volumes, foreign demand, and a focus on high-quality developments. These trends suggest a positive outlook for the sector, offering promising opportunities for potential investors and retirees considering Cyprus as a destination.

Sources: PwC Cyprus, Cyprus Mail