The property market in Cyprus continues to present attractive opportunities for both local and international buyers in 2025, with several indicators shaping a favorable environment for investment and homeownership.
Market Growth and Price Trends
Throughout 2024, housing prices in Cyprus maintained an upward trajectory, reaching heights not seen since before the 2012-2013 banking crisis. However, the pace of growth began to show signs of moderation. The Residential Property Price Index, as published by the Central Bank of Cyprus (CBC), reported a slowdown from a 7.80% year-on-year increase in Q1 2024 (6.51% inflation-adjusted) to a 6.51% annual increase by Q3 2024 (5.78% inflation-adjusted). This moderation suggests the market is transitioning from rapid growth to a more balanced phase, which often creates advantageous conditions for buyers looking to enter before the next upward cycle.
A breakdown by property type highlights that apartments are leading the market in both price growth and demand. Apartments saw an annual price increase of 8.8% (8.1% inflation-adjusted) as of Q3 2024, while houses recorded a 6.0% rise (5.3% inflation-adjusted). While prices continue to rise, the moderation, particularly in houses, indicates less competitive entry points for those considering detached or semi-detached homes.
Upward Sales Volume and Market Activity
The beginning of 2025 has already witnessed a significant uptick in property transactions. Real estate sales in Cyprus rose by 12% in the first four months of 2025 compared with the same period last year. This robust activity points to strong buyer confidence and an active market, with increased liquidity favoring those seeking to buy or sell property.
The Cypriot property market’s overall transaction value remains impressive, with total sales surpassing pre-pandemic levels. In 2022, market activity reached €6 billion, and €5.5 billion in 2023, with 2024 performing similarly well. Experts consider the current real estate market in Cyprus “the best investment,” supported by consistent transaction volumes and steady, if slightly moderated, price gains.
Rental Yields and Investment Returns
One of the most compelling reasons to consider purchasing property in Cyprus in 2025 is the strong rental yield environment. According to research published by Global Property Guide in May 2025, gross rental yields stand at 5.29% in Limassol, 4.78% in Nicosia, and 4.25% in Paphos—compare favorably with other Mediterranean destinations. Apartments, in particular, are noted as the best-performing investment, offering the highest yields (5.42% as per the RICS Index for Q4 2024).
This rental yield scenario not only appeals to buy-to-let investors but also provides a safety net for owner-occupiers, as the robust rental market can offer flexibility—whether monetizing a property in the future or providing options for temporary relocation.
Price Levels and Affordability
Despite the recent years of appreciation, Cyprus real estate remains relatively affordable compared to other European markets. By 2025, the average price for an apartment is around €250,000. This price point, coupled with the island’s lifestyle and tax advantages, means that both first-time buyers and seasoned investors can find value.
Economic and Market Outlook
The Statista Market Forecast projects the total value of the Cypriot real estate market to reach US$123.01 billion in 2025. This growth underscores the sector’s resilience and ongoing attractiveness, driven by steady population growth, tourism, and foreign investment. The persistent demand for property, particularly apartments in urban centers like Limassol, supports positive longer-term expectations for price appreciation and sustained liquidity.
Policy Environment and Foreign Buyer Demand
While the earlier boom was partially fueled by strong foreign demand—especially through programs such as the Cyprus Investment Programme—the central bank now notes a slowdown of upward price pressure due to a recent decline in foreign demand. This reduction has resulted in a less overheated market and presents a more stable and predictable environment for buyers, minimizing the risk of speculative bubbles.
Conclusion: Why 2025 Is a Favorable Year to Buy in Cyprus
The favorable conditions for buying property in Cyprus in 2025 stem from a blend of moderating price growth, active sales volumes, attractive rental yields, relative affordability, and a stable investment environment. Buyers entering the market in 2025 can benefit from:
- Moderated but continued price appreciation
- High demand and liquidity in urban property markets
- Robust rental returns for investment properties
- Greater stability with reduced speculative pressures
- Strong economic fundamentals supporting real estate
These factors combine to make 2025 an advantageous year for property acquisition in Cyprus, with value opportunities for both investors and lifestyle buyers.