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Cypriot Real Estate Market Sees Robust Growth In 2025 With €6.5 Billion In Transactions

Steady Momentum Throughout The Year

Cyprus’ real estate sector maintained stable growth in 2025, reaching a total transaction value of €6.5 billion, up 8% compared to 2024. Data from PwC Cyprus also show a 4% increase in transaction volume, with deals totaling 25,600 over the year.

Regional Dynamics And Market Leadership

Growth in transaction value was recorded across nearly all regions, with Limassol as the only exception, posting a slight decline. Despite this, the city continues to dominate the market, accounting for 41% of total value and reinforcing its central role in the sector.

Residential Properties: The Engine Of Growth

Residential real estate remained the primary driver of activity, representing 69% of total transactions and reaching €4.5 billion in value. Strong demand for apartments played a key role, contributing around 60% of the overall market growth, particularly in urban areas.

Surge In Foreign Investment

International demand strengthened notably, with foreign buyer activity rising by 16% in 2025. Paphos, Larnaca, and Limassol together generated approximately 80% of this increase, highlighting their continued attractiveness for overseas investors.

High-End Market Performance

Luxury properties priced above €1.5 million accounted for 203 transactions with a combined value of €550 million, representing 8% of the total market. Limassol remained the leading location in this segment, although its share declined from 76% in 2024 to 61% in 2025, as Paphos expanded its presence.

Enhanced Development And Future Outlook

Development activity accelerated during 2025, with building permits rising by 9% and their total value increasing by 28% between January and November. This shift points to a focus on larger-scale and higher-quality projects. Limassol and Nicosia led in total permitted construction area, while additional growth was observed in hotel and leisure developments.

Sustainability And Strategic Adaptation Amid Geopolitical Uncertainty

PwC Cyprus Head of Real Estate Konstantinos Konstantinou emphasized the importance of sustainability, infrastructure investment, and long-term value creation as the sector navigates an increasingly uncertain geopolitical environment. Reported figures precede the escalation of tensions in the Middle East, which may influence market dynamics going forward.

Lithuania And Cyprus Forge Enhanced Partnership In Tourism And Defence

Expanding Cooperation Beyond The Surface

Kristupas Vaitiekūnas highlighted opportunities for closer cooperation between Lithuania and Cyprus during his visit to Nicosia for the informal ECOFIN meeting. Speaking to the Cyprus News Agency, the Lithuanian finance minister said both countries share common challenges and could expand collaboration in areas including tourism, defence and financial services.

Addressing Shared Challenges

Finance Minister Kristupas Vaitiekūnas said Lithuania and Cyprus face similar security and economic pressures despite their geographic differences. Particular attention was given to emerging security threats, including drone-related risks, alongside the importance of maintaining resilient financial sectors. According to Vaitiekūnas, stronger coordination in those areas could deliver long-term economic and strategic benefits for both countries.

Focus On Fiscal Stability And Energy Security

Discussions at the ECOFIN meeting are expected to focus on Europe’s economic outlook, energy market volatility and fiscal stability. Kristupas Vaitiekūnas warned that instability in the Middle East could continue affecting oil markets and broader economic performance across Europe. Housing affordability was also identified as a growing challenge, with rising property prices in cities such as Vilnius reflecting broader pressures seen across European markets.

Coordinated Energy Strategy And Future Investments

The Lithuanian finance minister also called for a more coordinated European approach to energy and economic resilience. Vaitiekūnas suggested that targeted and temporary policy measures could prove more effective than large-scale structural reforms in addressing short-term pressures. Lithuania continues to increase investment in renewable energy generation and storage infrastructure as part of efforts to strengthen energy independence and begin producing surplus electricity by 2028.

Support For Ukraine And Enhancing Defence Funding

Finance Minister Kristupas Vaitiekūnas reaffirmed Lithuania’s support for Ukraine, describing the war as a broader struggle tied to European security and democratic values. He also backed accelerating Ukraine’s accession process to the European Union, arguing that deeper integration would strengthen regional stability and economic prosperity. Vaitiekūnas welcomed the EU’s SAFE programme, which is expected to support Lithuania’s defence capabilities while contributing additional assistance to Ukraine.

Looking Ahead To A More Unified Europe

Addressing the European Union’s future budget framework, Kristupas Vaitiekūnas said increased funding for security and defence represented a positive development. At the same time, he warned that reductions in cohesion funding and agricultural support could negatively affect purchasing power and long-term European unity. Lithuania is expected to place continued emphasis on Ukraine and regional security ahead of its upcoming EU Council Presidency in early 2027.

Uol
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