Surge in Property Transactions
The Cypriot property market witnessed significant momentum in early 2025, breaking records across several key indicators. The registration of 1,664 property sales in May is not only a 30% year-over-year increase but also the highest monthly tally seen since the pre-crisis boom era of May 2007. Cumulatively, sales from January to May reached 7,185 units, reflecting a robust 15% growth against the same timeframe in 2024. This surge underscores a renewed confidence in Cyprus’s real estate sector, coming on the heels of several years characterized by steady, yet less dramatic, gains.
Dynamics Behind the Boom
Demand for New Builds and Off-Plan Homes
The driving force behind the surge has been a marked increase in demand for new and under-construction properties. According to analytics from contracts submitted to the Department of Lands and Surveys, the first quarter alone saw 1,368 contracts filed for new apartments and houses—a 24.8% year-on-year rise. Apartments dominated the segment, with 1,109 units sold (up 22.7%), but detached house sales grew even faster, rising 34.9% compared to the previous year. The overall transaction value for Q1 reached €391 million, compared to €299 million in the first quarter of 2024. Source
Geographical Spread and Market Shifts
The upswing in sales was broadly distributed, but certain districts outpaced the rest. In Paphos, apartment sales soared by 67.7%, reaching 446 units and driving €139.2 million of transaction value. House sales there climbed a healthy 9%, and the average transaction value increased by nearly 14% to €195.5 million. Famagusta posted some of the most impressive growth rates, with apartment and house sales both rising by over 36%, and transaction values in both categories jumping by more than 40%. In the capital, Nicosia, apartment sales posted a 17.5% rise, and house sales grew by 7.8%.
A key trend is the shift in investor focus: while Limassol has long attracted the lion’s share of overseas investment, interest from foreign buyers is increasingly turning to Larnaca and Paphos, likely due to more attractive price points and greater availability of new projects. Meanwhile, local buyers show a strong preference for mid-priced and budget-friendly housing, buoyed by the availability of off-plan deals and incentives from developers.
Price Trends and Market Stability
Despite the surge in transactions, price growth has been more measured, indicating a stabilizing rather than an overheating market. Average prices for apartments remained near €250,000, and while there has been a clear upswing since 2023, with prices rising 7.7% that year, growth moderated to around 2.5% in 2024.
Buyer Demographics and Property Types
- Local Buyers: Leaning toward affordable and mid-range properties, especially apartments priced between €150,000–€300,000 and houses between €150,000–€500,000. Sales of these categories have doubled in some districts, a sharp contrast to previous years when luxury sales dominated.
- Foreign Investors: Overseas buyers are increasingly attracted by high-value deals in Larnaca and Paphos, continuing to drive demand for under-construction and newly completed homes.
Outlook
Cyprus’s housing market, buoyed by strong transaction volumes, diverse buyer interest, and substantial new project launches, appears poised for sustained growth through the remainder of 2025. The record sales figures for May, coupled with year-to-date gains, position the sector as a rare standout in a global real estate environment otherwise marked by caution and slowdown.
With continued local and foreign buyer activity and a healthy pipeline of new build developments, Cyprus’s property sector seems set to build on this momentum, cementing its reputation as the Eastern Mediterranean’s property hotspot.