Prospects for real estate growth in Cyprus in 2025

Cyprus real estate prospects from tourism recovery to foreign investment inflows

In recent years, Cyprus' real estate sector has experienced an impressive recovery from the COVID-19 pandemic. The recovery of the tourism industry, which accounts for around 15% of the country's GDP, has been one of the key factors driving growth in the housing market. As travelers have once again flocked to the picturesque beaches and cozy villages of the Mediterranean island, demand for real estate for vacation and investment purposes has skyrocketed.

Impressive growth figures

Official figures confirm the growth trend. According to the latest statistical reports, property sales in Cyprus have increased by 30% in the past year compared to the previous period. These figures show a significant increase in interest from both local and foreign buyers. The average cost of a property in the Cyprus housing market is around €230,000. At the same time there is a clear preference of buyers in favor of apartments, which are purchased twice as often as detached houses. This trend can be explained by the more affordable price and lower maintenance costs of apartments compared to detached houses. 

Price recovery after the pandemic

After some decline during the pandemic, property prices in Cyprus have started to recover rapidly. Since 2015, there has been an average increase of 7% and between January and May 2023 there has been a 10% increase compared to the same period in 2022. This trend is likely to continue in the coming years as demand remains strong.

Popular regions and demand from foreign buyers

Although demand is growing across the island, certain regions are particularly attractive to property buyers. Limassol, Paphos and Larnaca, the three southern coastal towns that account for three quarters of all sales, are the most popular destinations. This is where foreign buyers, especially those from third countries, prefer to invest in real estate. Despite the general rise in prices, Cyprus still retains its appeal to foreign investors due to several key factors.

The Golden Visa program

One of the main attractions is the residency through investment program, better known as the Golden Visa. This program allows foreign nationals to obtain a residence permit in Cyprus provided they invest a certain amount of money in local real estate or other assets.

Favorable business environment

In addition, Cyprus offers a stable economic environment and favorable conditions for doing business, which makes it attractive not only for individual investors, but also for international companies wishing to locate their offices on the island. Statistics confirm the growing interest of foreign buyers: approximately half of all real estate transactions in Cyprus are made with their participation. This high demand is due to the combination of investment incentives, a favorable tax regime and the high quality of life that the Mediterranean island offers.

High rental yields are another important factor attracting investors to Cyprus. According to experts, the average rental yield here is about 8.5% per annum. This level of profitability makes the purchase of real estate for the purpose of subsequent renting out an extremely attractive option for investors.

Management of rental housing

Investors can choose the most convenient way to manage rental properties. Some prefer to oversee the process themselves, while others hire professional property management companies that offer a full range of services to maintain the properties and interact with tenants.

Suburbanization trend: the demand for spacious homes

An interesting trend in the Cyprus real estate market is suburbanization, or moving from urban centers to the suburbs. Many buyers prefer less densely populated areas where they can find more spacious and affordable housing. This trend is driven by the desire to avoid the high density of development in major cities such as Nicosia and Limassol and enjoy a more relaxed lifestyle surrounded by nature. The suburbs are also attractive due to their developed infrastructure and good transportation accessibility.

Record figures for 2024

According to official statistics, the number of real estate transactions in Cyprus reached a record high in 2024. The number of residential sales and purchases exceeded the peak figures of 2007, which was considered one of the most successful in the history of the country.

• Peak demand from foreigners
  This unprecedented growth was driven by strong demand from both local buyers and foreign investors. The inflow of foreign capital was particularly notable, reflecting the growing attractiveness of Cypriot real estate in the international market.
• A slight decline at the end of the year
  By the end of 2024, however, the pace of growth had slowed slightly. In December, there was a slight decrease in sales compared to the same period in 2023. This decline was mainly due to reduced interest from foreign buyers, while local investor activity remained stable.
• Forecasts for 2025 — continued stability
  Despite a slight slowdown at the end of 2024, experts predict that the Cyprus real estate market will remain stable in 2025. Several key factors should contribute to this.

Continued economic recovery

The country's economy is expected to continue to recover from the COVID-19 pandemic. This, in turn, will stimulate demand for housing from both local buyers and foreign investors interested in a stable and growing economic environment.

• Stable interest rates
  In addition, interest rates are projected to remain stable, making mortgage lending more affordable for real estate buyers. This may attract additional demand from those who have previously put off buying a home due to high interest rates.
• Investment in infrastructure
  An important factor supporting the market will be continued investment in the development of Cyprus' infrastructure. The construction of new roads, ports and other infrastructure will increase the attractiveness of the island for investors and tourists, which in turn will have a positive impact on demand for real estate.
• Demand for high quality real estate
  Experts predict that in 2025 there will continue to be a high demand for high-quality premium real estate, especially in popular tourist areas such as Paphos, Larnaca and Limassol. These prestigious properties will enjoy steady demand from both local buyers and foreign investors looking for income-generating assets in Cyprus.
• Prospects for further growth
  Despite possible short-term fluctuations, the long-term prospects for the Cyprus real estate market look promising. Demand for housing on this picturesque Mediterranean island is only expected to increase as the tourism sector continues to recover and foreign investment continues to flow in.

Key Growth Factors

A combination of several key factors makes Cyprus an extremely attractive real estate destination for both local and foreign investors:

1. Favorable climate — the mild Mediterranean climate with warm winters and hot summers has always attracted buyers who want to enjoy comfortable weather conditions all year round.
2. High quality of life — Cyprus is renowned for its leisurely lifestyle, rich cultural heritage, diverse cuisine and the hospitality of the locals, which ensures an excellent quality of life.
3. Stable economy — Cyprus' economy is characterized by stability and service orientation, which creates a favorable environment for business and investment.
4. Investment programs — preferential programs such as the Golden Visa attract foreign investors by offering residence permits in exchange for real estate investments.
5. High rental yields — Cyprus offers one of the highest rental yields in Europe, making it attractive for investment in the rental business.

Download the mobile app!

Install our app and get all the tools you need to search for real estate abroad in your smartphone! The mobile application will allow you to quickly access your personal account, manage your favorite properties and track your requests, directly exchange messages with sellers and buyers.

Development of tourist infrastructure

One of the key factors that will drive further growth in demand for Cyprus real estate will be the continued development of the island's tourism infrastructure. The government is actively investing in the construction of new hotels, resorts and entertainment complexes to attract even more tourists.As the tourist flow increases, so will the demand for vacation accommodation, as well as apartments and villas for rent. This trend is particularly noticeable in popular resort towns such as Paphos, Ayia Napa and Protaras.

Increased interest from foreign buyers

Alongside strong domestic demand, interest from foreign buyers of property in Cyprus is expected to grow further. Due to its favorable geographical location, developed infrastructure and attractive investment programs, the island attracts the attention of wealthy investors from the Middle East, China, Russia and other regions.

The increasing number of foreign buyers will not only support the growth of real estate prices, but will also stimulate the further development of related industries such as construction, real estate management and services. This in turn will have a positive impact on the Cypriot economy as a whole.

An increase in interest in the premium segment

Another noticeable trend in the real estate market of Cyprus is the increase in demand for premium objects. Buyers from all over the world are increasingly paying attention to luxurious villas, apartments and townhouses with a view of the Mediterranean Sea and a high level of decoration. This interest is due to several factors:

1. Firstly, wealthy investors value exclusivity and high quality of elite real estate in Cyprus.
2. Secondly, such objects are often considered as a profitable investment with the prospect of increasing value in the future.

Developers and developers actively react to this demand, offering more and more luxurious residential complexes with their own pools, spa centers, tennis courts and other premium amenities. Many of them are located in picturesque places with amazing views of the Mediterranean Sea.

Development of areas around Nicosia

Although coastal cities, such as Limassol, Paphos and Larnaca, still remain the most popular areas for buying real estate, investors' attention is increasingly drawn to areas around the capital of Nicosia.The proximity to the country's business center and well -developed infrastructure make these areas attractive for both local buyers and foreign investors seeking real estate for living or leasing. Developers actively master new territories around Nicosia, offering modern residential complexes with a wide selection of apartments, townhouses and villas at more affordable prices than in coastal areas. This opens up new opportunities for real estate investments for those who are looking for more budget options.

Environmental stability and «green» technologies

In response to the growing demand for ecologically stable housing, many developers in Cyprus begin to introduce “green” technologies and principles of energy efficiency into their projects. This includes the use of solar panels, water recirculation systems, modern heat -insulating materials and other solutions to reduce the negative impact on the environment.

This approach not only contributes to the sustainable development of the island, but also makes real estate objects more attractive to buyers who value environmental friendliness and environmental care. It is expected that in the coming years, the demand for «green» real estate in Cyprus will only grow, since more and more buyers are aware of the benefits of environmentally sustainable housing. This will become another factor contributing to the development of the island real estate market.

Expansion of infrastructure and transport accessibility

In order to cope with the growing demand for housing and ensure comfortable conditions for new residents, the Cyprus government is actively investing in the development of infrastructure and transport accessibility.
The plans include the construction of new highways, the expansion of the network of public transport, the modernization of airports and seaports. These measures will not only increase mobility inside the island, but also facilitate access to foreign tourists and investors. In addition, they are actively developing social infrastructure, including the construction of new schools, hospitals, shopping and entertainment centers. This will ensure a high standard of living for permanent residents and create additional amenities for real estate buyers.

Diversification of the rental housing market

As the demand for rental housing in Cyprus grows, the rental housing market is becoming more and more diverse. In addition to the traditional rental of apartments and villas, new formats appear, such as short -term rent apartments, student housing and facilities for cohabitation.
The short -term rental of housing, in particular, is becoming more and more popular among tourists and business travelers who prefer more flexible and comfortable living conditions compared to hotels. This market segment opens up new opportunities for investors looking for sources of passive income. The prospects for the development of the rental housing market look promising, as the Cyprus government seeks to attract more foreign students, Frealace specialists and remote workers, for whom affordable and flexible housing is a key factor.

Digitalization and implementation of innovation

Another important trend in the real estate market of Cyprus is the active implementation of digital technologies and innovations. Leading real estate agencies and development companies are increasingly using online tools to promote their objects, virtual tours, 3D visualization and other modern solutions. Buyers, especially from abroad, are highly appreciated by the opportunity to get acquainted with real estate in digital format without leaving for Cyprus. This allows them to reduce the time and expenses for the search for suitable housing.

In addition, innovative technologies are used in the construction process itself. The use of BIM modeling, drones for aerial photography, robotic systems allows you to increase efficiency, reduce the costs and score of this, innovative technologies are also used in the construction process itself. The use of BIM modeling, drones for aerial photography, robotic systems allows you to increase efficiency, reduce costs and provide higher quality construction.
The introduction of such advanced decisions not only increases the competitiveness of developers and real estate agencies, but also contributes to the overall technological progress and digital transformation of the industry in Cyprus.

State support and incentives

The Cyprus government is aware of the importance of the real estate sector for the country's economy and takes active measures to support and stimulate it. In addition to investment in infrastructure, special programs and initiatives are being implemented aimed at attracting both local and foreign investors. One of the most successful measures was the “Citizenship through Investment” program, which provides the opportunity to obtain citizenship of Cyprus and, accordingly, citizenship of the European Union, subject to investing a certain amount in real estate or other assets on the island.

In addition, there are tax benefits and incentives for investors in real estate, such as exemption from paying capital tax when selling objects and the possibility of transferring losses to future periods. Such measures not only contribute to the influx of foreign investments, but also stimulate the development of the local real estate market, creating additional jobs and supporting economic growth.

Cyprus — oasis of possibilities

Summing up, we can say with confidence that the real estate market of Cyprus is worried about the period of active growth and development. The combination of a favorable climate, high quality of life, a stable economy and attractive investment programs makes this Mediterranean island one of the most promising areas for the purchase of housing.

The restoration of the tourism sector, the growth of interest from foreign investors, the development of infrastructure and the introduction of innovation — all these factors contribute to a further increase in real estate demand and open up new opportunities for investment. Whether it is buying housing for personal residence, renting or investing in prestigious premium objects, Cyprus offers a wide selection of options that can satisfy the most diverse needs and preferences of customers.

Given the predicted sustainable growth of the economy and tourist flow, as well as active state support of the industry, the prospects for the real estate market of Cyprus look extremely promising. This picturesque island, combining ancient history and modern comfort, can rightfully be considered a real oasis of opportunities for investors and customers of housing from around the world.