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Resilient Growth: Cyprus Real Estate Market’s Transformative Surge In 2025

The Cyprus real estate market demonstrated robust performance in 2025, underpinned by significant growth and resilience amid global volatility. According to data published by the Department of Cadastre and Geomatics—presented quarterly by the Council of Real Estate Agents—the sector experienced a 15% increase in registered property sale deeds between January and December compared to the previous year.

Strong Market Fundamentals Across Cyprus

In 2025, a total of 18,114 registered sale deeds were documented, up from 15,797 in 2024. Although the number of property transfers saw a modest 0.77% uptick, the value of these transactions surged by roughly 10%, exceeding €4.7 billion. These indicators not only reflect growing buyer interest but also signal that investment in high-value properties is gaining traction.

Insights From Industry Leadership

Marinos Kynaigeirou, President of the Council of Real Estate Agents, commented, “The performance of 2025 is the clearest proof of the resilience and allure of the real estate sector. Despite global challenges, the market charted a robust growth trajectory, reaffirming real estate as a stable and secure investment. While heightened buyer interest is evident, the significant increase in property transfer values indicates a shift towards premium real estate investments. Looking ahead to 2026, the market is anticipated to settle, with accessible housing remaining a pressing challenge as prices continue to rise.”

Regional Analysis: Diverse Dynamics Across the Island

Nicosia: In the province of Nicosia, market activity accelerated markedly in 2025. Transfers in value broke the €1 billion threshold, reaching €1.1 billion compared to €950 million in 2024, while the number of transactions increased from 5,395 to 5,917. Additionally, new property registrations climbed to 4,115 from 3,527 one year earlier.

Lemesos: Limassol maintained its position as a leader in transactional value. In 2025, the value of transfers rose from €1.5 billion to €1.7 billion, although the number of transfers slightly dipped from 5,054 to 4,940—indicating fewer but higher-value transactions. New property registrations also increased to 5,563 from 5,032, underscoring the strengthening market interest.

Paphos: In Paphos, the dynamics were more nuanced. While new property registrations grew from 3,107 to 3,567, both the transaction volume and value experienced a slight decline, with the latter decreasing from €983 million to €968.8 million, and the number of transactions falling from 3,727 to 3,415.

Larnaka: Larnaka continued its steady upward trajectory. The value of property transfers increased from €637 million to €698.5 million, accompanied by a minor volume uptick from 3,775 to 3,855 transactions. New property registrations also surged from 3,356 to 3,978, reflecting strong market activity.

Ammochostos Free Area: In the Ammochostos region, although the total number of transfers slightly dropped from 1,204 to 1,177 transactions, their value rose from €214 million to €236.6 million. New property registrations also recorded an increase from 775 to 891, marking a positive market indicator.

Conclusion: Navigating Future Challenges

With 2025 confirming its status as a pivotal year for Cyprus real estate, stakeholders face the dual challenge of sustaining high-value property trends while ensuring housing remains accessible for the broader population.

Mercedes-Benz Posts Higher Profit Despite China Slowdown

Mercedes-Benz reported stronger-than-expected second-quarter results, lifting its shares on Tuesday despite mounting pressure from Chinese automakers and a weaker outlook for sales and revenue.

The earnings provided a boost for Europe’s auto sector, where manufacturers continue to grapple with tariffs, softer demand and intensifying competition from Chinese rivals. Volkswagen, Mercedes-Benz and BMW have all accelerated restructuring efforts in response.

Cost Discipline Lifts Quarterly Profit

Mercedes-Benz shares rose as much as 5.9% following the results before trimming gains to trade 3.5% higher by 1118 GMT. The company reaffirmed its profit margin guidance for its core passenger car business after reporting an adjusted return on sales of 4.0% for the second quarter, above market expectations and within its 3% to 5% target range.

“In an environment where some automakers are ringing alarm bells on their competitive positioning, Mercedes delivered a clear and confident message,” Morningstar analyst Rella Suskin said.

Second-quarter operating profit increased 22% to €1.5 billion ($1.7 billion), despite a 3% decline in revenue. Lower administrative and research and development costs, together with strong performances from the financial services and vans divisions, supported earnings, while the results also included a €131 million gain related to the planned sale of leasing subsidiary Athlon.

China Remains The Key Pressure Point

Despite stronger profitability, Mercedes continues to face a challenging market environment. Sales in China fell 30% during the second quarter, prompting the company to abandon earlier expectations for stable car sales and group revenue. It now expects both to decline slightly from a year earlier.

BMW also lowered its outlook in June following a deeper-than-expected slowdown in China, highlighting the pressure facing Germany’s premium carmakers. At the same time, Mercedes said Chinese manufacturers are increasingly expanding into European markets, although Chief Executive Ola Kaellenius said their focus remains on higher-volume segments rather than the premium market.

“But that is not a reason to sit back and be relaxed,” he said.

Manufacturing Shift Continues

Mercedes is also reshaping its manufacturing footprint. The company said its German factories will undergo a more aggressive push toward leaner production, although it declined to provide further details while talks with labour representatives continue. Production is also being expanded in lower-cost Eastern European locations, including Hungary, where the company is increasing capacity at its Kecskemet plant, as well as in Poland.

Chief Financial Officer Harald Wilhelm said the full-year margin for the passenger car division is expected to come in at the lower end of the company’s guidance range, reflecting a higher share of electric vehicle sales in Europe, which remain more expensive to produce and continue to weigh on profitability.

“We must continue to work flat out to reduce costs so that we can remain competitive on the prices of our products,” Kaellenius said.

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