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Cyprus Housing Market Gains Momentum in Q1 2025: Robust Growth Across Districts

Robust Start Reflects Growing Investor Confidence

The Q1 2025 data released by Landbank Analytics underscores significant advancements in Cyprus’ residential property market. With a 24.8 percent year-on-year rise in contracts, off-plan and under-construction homes are experiencing surging demand. The sector recorded 1,368 contracts for new apartments and houses, setting a strong precedent for the rest of the year.

Dynamic Shifts in Transaction Volume and Value

The market witnessed a pronounced upswing in total transaction value, which climbed to €391 million from €299 million in the corresponding period of 2024. Apartment transactions, accounting for 1,109 units, registered a 22.7 percent increase and generated €272 million, marking a 23.1 percent year-on-year boost. Notably, house sales outpaced these gains with volume increasing by 34.9 percent to 259 units and transaction value soaring 52.6 percent to €119 million.

District-Level Insights: Larnaca and Limassol in Focus

Regional performance varied markedly. In Nicosia, apartment sales reached 376 units – a 17.5 percent increase – with transaction value rising 18 percent to €72 million. Meanwhile, Limassol maintained its lead in value terms, with apartment sales climbing by 5.8 percent to 311 units, and their value surged 19.6 percent to €116 million, representing 42 percent of the national apartment market’s value. Conversely, Larnaca emerged as an outlier; apartment sales surged by 66.3 percent to 321 units, and house sales increased by 77.1 percent to 62 units, with respective transaction values appreciating substantially.

Emerging Trends Across Paphos And Famagusta

Paphos demonstrated robust momentum, particularly in the house segment, where sales increased by 58.1 percent to 68 units. The district saw its apartment values rise by 20 percent year-on-year to €24 million, while house transaction value jumped 88 percent to €47 million, broadening its share of national house sales. Conversely, Famagusta exhibited divergent behavior with apartment sales halving to 17 units, resulting in a 57.1 percent decline in value to €3 million. In contrast, house sales in the region grew 61.5 percent, both in volume and rising by 50 percent in value to €6 million.

Expert Analysis and Future Outlook

Landbank Group CEO Andreas Christophorides highlighted the market’s resilience, attributing the uptick partly to the easing of interest rates. He emphasized that while apartment sales have risen nearly 23 percent in both terms of volume and value, the remarkable surge in new house transactions is a key indicator of shifting dynamics across districts. Christophorides pointed to Larnaca as a burgeoning hub, demonstrating dramatic increases in both unit sales and transaction value. He also noted that Nicosia continues to appeal to investors targeting centrally located properties, and Limassol consistently upholds its reputation as a premium investment destination. In Paphos, the momentum in high-value house sales is largely driven by foreign buyers, further substantiating the region’s burgeoning appeal.

In Famagusta, a notable shift from apartments to houses may suggest an evolving consumer preference, potentially influenced by the district’s strong tourism profile. Overall, the resilience and growth observed in Q1 2025 signal an optimistic outlook for Cyprus’ residential property market as investor interest and regional dynamics continue to evolve.

€50 Million Luxury Resort Planned For Ayia Napa

Ayia Napa could strengthen its position in the premium tourism market with a proposed €50 million mixed-use resort combining a hotel, serviced apartments, luxury bungalows and a beach club.

Aesara Investments Ltd has submitted an information form to the Department of Environment for a development to operate under the name Atlantica Wavemaster Hospitality. The project is planned for the Limnara area of Ayia Napa, along the coast south of Kryou Nerou Avenue, between the town centre and Cape Greco.

Hotel, Apartments And Luxury Bungalows

The proposed resort will include a 324-room hotel with capacity for 648 guests, alongside a condo-hotel building containing 20 one- and two-bedroom apartments. Facilities are planned to include restaurants, bars, cafés, a spa with an indoor pool, a gym, shops, a multipurpose hall, a children’s club and a cinema.

A further 33 three-level luxury bungalows, each designed for two guests and featuring a private swimming pool, are planned for the southern part of the site. A beach club with a restaurant and an outdoor pool complex covering more than 6,300 square metres will also form part of the development.

The project includes 321 parking spaces, including 12 for people with disabilities, and 14,196 square metres of landscaped green space featuring local plant species.

Seasonal Hotel Operations And Year-Round Residences

The hotel is expected to operate from March to November, with peak occupancy during the summer season. The condo-hotel apartments, meanwhile, will be available for sale or long-term rental and intended for year-round residence. Owners and tenants will also have access to the resort’s facilities, including its pools, restaurants and fitness areas.

Construction is expected to take 24 months once the required permits are secured. At the busiest stage, the project could employ around 100 workers per day.

Environmental Restrictions Near Cape Greco

The site’s proximity to protected Natura 2000 areas has prompted strict environmental requirements. The Cape Greco Special Protection Area borders the site to the south, while a Special Area of Conservation lies approximately 50 metres away.

Conditions imposed by the Department of Environment include a maximum building height of five floors, or 18.5 metres, and restrictions on permanent structures near the coastline. The project must also use spider-web type glazing and low-intensity lighting to minimise disturbance to local birdlife.

According to the project’s consultants, the design has been prepared to comply with the environmental conditions and the final report on cumulative impacts for the Cape Greco Special Protection Area. The hotel and apartment building are positioned in the central and northern parts of the plot, away from the shoreline.

Within the designated no-build zone, located 40 metres from the boundary of the beach protection zone, only swimming pools are planned. The consultants state that these are not expected to affect protected species in the area.

Uol
Aretilaw firm
eCredo
The Future Forbes Realty Global Properties

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