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2025 Sets a Positive Trend for Cyprus Real Estate

The real estate market in Cyprus has surged forward in 2025, marking a significant 15% increase in property sales compared to the previous year. This remarkable growth in the first quarter is highlighted by the 4,137 sale documents filed, as per reports from the Registration Council of Real Estate Agents.

While there was a slight decrease of 2.9% in transaction volume, the sales value saw a robust increase of 15%, surpassing €1.1 billion annually. This promising start to the year reflects sustained demand and better alignment of supply to market needs.

Insights from Regional Markets

Limassol continues to dominate the market, boasting the highest value transfer at €428.7 million and leading in documentation volume with 1,295 sale filings. Additionally, the city recorded 1,203 transaction volumes, underscoring strong investment activities.

In Nicosia, stability reigns with 1,304 transactions valued at €283.5 million. The city attracted 932 new sale documents, reflecting keen interest in fresh developments.

The momentum from previous years carries on in Paphos, with 811 transfers totaling €199 million. This shows lively activity in property purchase, fueled chiefly by international buyers.

Larnaca saw €154 million in transactions from 843 property transfers. The sale documents numbered 910, indicating rising demand bolstered by ongoing investments, as featured in Desalination Breakthrough: Addressing Water Shortages in Cyprus.

Though the Famagusta region ranked lowest with €48 million and 251 transfers, the growth trend persists. The 171 sale documents filed signal an appeal through lower prices and tourism-driven development.

Cyprus Inflation Hits 3% In April, Up From 1.5%

Eurostat flash estimates show that Cyprus recorded annual inflation of 3% in April 2026, up from 1.5% in March and 0.9% in February. The data indicate a faster increase in consumer prices compared with earlier months.

Economic Overview

Compared with April 2025, when annual inflation stood at 1.4%, the latest figure reflects a higher year-on-year rate. Monthly inflation reached 2.2% in April 2026, pointing to a rise in prices within a single month.

Regional Trends Across The Eurozone

Across the euro area, annual inflation reached 3% in April 2026, compared with 2.6% in March. Cyprus follows a similar pattern, although the increase from earlier months has been more pronounced.

Sectoral Contributors To Inflation

Eurostat data show that energy remains the main contributor, with prices rising by 10.9% annually in April, up from 5.1% in March. At the same time, services recorded annual growth of 3%, slightly lower than 3.2% previously, while food, alcohol, and tobacco prices increased to 2.5% from 2.4%. Non-energy industrial goods also rose, reaching 0.8% compared with 0.5% in March.

Geopolitical Influences And Future Outlook

External factors continue to affect price developments, including tensions involving Iran and disruptions linked to the Strait of Hormuz. These conditions are contributing to higher energy costs, which in turn affect inflation in Cyprus and across the euro area.

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