In 2025, Cyprus's real estate market achieved a record EUR 6.5 billion in transaction value, marking an 8% increase from the previous year. This growth was driven by a 4% rise in the number of transactions, totaling 25,600. Residential properties led the market, accounting for 69% of the total transaction value.

Regional Performance

Limassol dominated the market, representing 41% of the total transaction value. Other districts also experienced significant growth, with Nicosia and Paphos showing notable increases.

Price Trends

The Central Bank of Cyprus reported that the residential property price index reached 102.3 points in Q3 2025, a 5% year-on-year increase. Apartments saw a 6.4% rise, while houses increased by 2.6%.

Comparing to Canada

For Canadian retirees considering Cyprus, several factors are noteworthy:

- Property Prices: In 2025, the average apartment in Cyprus sold for EUR 248,000, and the average house for EUR 356,000. In contrast, the average price of a Canadian home in 2025 was approximately CAD 700,000.

- Taxation: Cyprus offers a favorable tax regime for retirees, including a flat income tax rate of 5% on pensions up to EUR 3,420 per year and 3% on amounts exceeding this threshold. In Canada, federal tax rates on pension income vary, with the lowest rate at 15% for income up to CAD 53,359.

- Cost of Living: Cyprus's cost of living is generally lower than Canada's. For example, consumer prices in Cyprus are about 20% lower than in Canada.

- Climate: Cyprus enjoys a Mediterranean climate with over 300 days of sunshine annually, while Canada experiences a range of climates, including cold winters in many regions.

- Healthcare: Cyprus provides a public healthcare system accessible to residents, with private healthcare options available. Canada offers a publicly funded healthcare system, though wait times can be longer in certain provinces.

- Residency: Cyprus offers a Permanent Residency Program for non-EU citizens, allowing retirees to reside on the island with a minimum investment. Canada's residency programs are more complex and may require significant financial investment or family sponsorship.

In summary, Cyprus's real estate market has shown robust growth, offering attractive opportunities for Canadian retirees seeking a favorable climate, lower cost of living, and a welcoming residency program.

Sources: PwC Cyprus, Cyprus Mail, Central Bank of Cyprus, Cyprus Non-Dom, DOM LiVE