Breaking news

Cyprus Real Estate Market Demonstrates Resilient Growth And High-Value Expansion In 2025

Market Overview

The Cyprus real estate sector exhibited considerable strength in 2025, with the overall property transfer value surpassing €4.7 billion and a 15% increase in sales documents compared to the previous year. According to the Real Estate Agents Registration Council, 18,114 sales documents were recorded nationwide, up from 15,797 in 2024, underscoring robust market activity and sustained momentum.

Surge In High-Value Transactions

Although the number of transactions experienced only a marginal rise of 0.77%, the total value of transfers surged by around 10%. This significant increase in overall value highlights a growing investor focus on higher-end properties. Marinos Kineyirou, President of the Real Estate Agents Registration Council, remarked that 2025 clearly evidenced the sector’s resilience and its capacity to withstand international shocks while maintaining a strong growth trajectory.

Regional Performance Insights

Within urban centers, Nicosia led a remarkable expansion, with transfer values rising from €950 million to €1.1 billion. The city also witnessed an increase in the number of transfers—from 5,395 to 5,917—and a noticeable uptick in interest in new properties, where sales documents grew from 3,527 to 4,115. Meanwhile, Limassol continued to dominate in transaction values, with overall transfer values increasing to €1.7 billion despite a slight reduction in transaction count, indicating a shift towards fewer, higher-priced deals. In contrast, while Paphos experienced an increase in sales documents, the total transfer values dipped marginally, and transaction volumes decreased. Larnaca and Famagusta, on the other hand, recorded steady gains in terms of both transfer value and sales documents, further emphasizing the diversified progression across the market.

Outlook And Challenges

Looking ahead to 2026, industry leaders predict a stabilization phase, with affordable housing emerging as a critical issue given the upward trend in prices and the mounting challenges for households aspiring to homeownership. As the Cyprus market continues to attract high-value investments, stakeholders are urged to balance growth with inclusivity, ensuring that the upward trajectory benefits a broad spectrum of buyers and investors.

Cyprus Introduces €200 Million Support Measures To Cut Energy And Food Costs

Comprehensive Relief Measures For A Resilient Economy

The government of Cyprus introduced support measures exceeding €200 million to reduce household expenses and support key sectors. The package targets energy costs, food prices, tourism and agriculture. Measures come in response to rising costs and supply pressures. Implementation begins in April and May 2026.

Energy And Fiscal Reforms

The government will reduce VAT on electricity for households to 5% from May 1, 2026, to March 31, 2027. The measure is expected to lower energy bills. Special consumption tax on transport fuels will decrease by 8.33 cents per liter between April and June 2026. Policy targets fuel-related costs.

Broadening The Zero VAT Initiative

Authorities will expand the list of products with zero VAT. Meat, poultry and fish will be included from April 1 to September 30, 2026. Existing zero-VAT categories already include fruits and vegetables. The government also decided not to introduce a green tax on fuels, avoiding an additional cost of about 9 cents per liter.

Sector-Specific Supports

The package includes a 30% wage subsidy for hotel employees for April 2026. Measure supports tourism businesses during the early season. Support for airlines aims to maintain connectivity with key destinations. The agriculture sector will receive subsidies covering 15% of costs for fertilizers and supplies in April and May.

Economic Stability, National Security

President Nikos Christodoulidis said economic stability remains a priority for the government. He noted that growth, fiscal balance and inflation trends support current policy decisions. Statement links economic policy with broader national priorities. The government continues to monitor external risks.

Ensuring Consumer Protection

Furthermore, the government has mandated rigorous market oversight and intensified inspections to prevent exploitative pricing during this period of economic intervention. This proactive stance ensures that the benefits of the measures directly serve the citizens without unintended inflationary impacts.

eCredo
Aretilaw firm
The Future Forbes Realty Global Properties
Uol

Become a Speaker

Become a Speaker

Become a Partner

Subscribe for our weekly newsletter