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Cyprus Government Finalizes €10.2 Million Compensation Package for Drought-Stricken Farmers

Overview Of The Compensation Initiative

The Ministry of Agriculture, Rural Development, and Environment has completed a compensation payout of €10.2 million to farmers and production groups affected by severe drought conditions in 2025. The Agriculture Department announced that a total of 2,516 compensation claims were approved within the year, providing critical financial support for those impacted by last year’s extraordinary dry spell.

Structured Support Under The Agricultural Development Programme

This targeted financial assistance was implemented under Measure 23 of the Agricultural Development Programme 2014-2020, aimed at delivering lump-sum payments to affected producers. The initiative covered a broad spectrum of agricultural sectors including cereals, citrus, olives, vegetables, potatoes, vineyards, avocado, apiculture, and producer organizations. Eligibility was determined through official assessments and records from regional offices, ensuring that both professional and non-professional farmers received the aid under specific conditions.

Impact And Distribution Of The Aid

According to the Agriculture Department, the majority of claims came from professional farmers. However, it was noted that approximately 50% of the eligible plantations—particularly deciduous orchards, walnut, and almond groves—did not submit claims. The drought of 2024, described as one of the most challenging in the history of Cypriot agriculture, coincided with below-average rainfall and unusually high temperatures, resulting in reduced production capacity and compromised product quality in key sectors such as cereals, olives, fruits, vegetables, and vineyards.

Coordinated Government And European Responses

Designation of the drought as a natural disaster by the relevant authorities prompted governmental decisions (1540/2024 and 1383/2024) that paved the way for these compensatory measures. In addition to domestic intervention, the European Commission approved an emergency fund of €3.5 million from the agricultural reserve, disbursed in September 2025, to mitigate broader economic repercussions.

Ongoing Support And Future Measures

The Ministry continues to work in close collaboration with local agricultural organizations to monitor the ongoing effects of the drought, which began in December 2023 and is now in its fourth consecutive year. With systematic data evaluation and open dialogue with the farming community, the government is prepared to activate additional support measures to ensure the sustainability of agricultural production amid the evolving challenges of climate change.

Additional Aid Disbursements And Investment Programmes

Furthermore, the Cypriot Agricultural Payments Organization (KOPA) disbursed over €22 million in December alone, addressing not only drought-stricken farmers but also those affected by severe wildfires in the Limassol region. As part of the 2025 Unified Emergency Subsidy Scheme, 15,577 applications have already received payments totaling approximately €9.76 million. Progress on investment measures under the Agricultural Development Programme indicates that while €43 million was disbursed by November, an additional €7.6 million is expected to finalize the payment period, ensuring comprehensive support for ongoing agricultural investments.

Cyprus Residential Market Surpasses €2.5 Billion In 2025 With Apartments Leading the Way

Market Overview

In 2025, Cyprus’ newly built residential property market achieved a remarkable milestone, exceeding €2.5 billion. Data from Landbank Analytics indicates robust activity countrywide, with newly filed contracts reaching 7,819, including off-plan developments. This solid performance underscores the market’s resilience and dynamism across all districts.

Transaction Breakdown

The apartment sector clearly dominated the market, constituting 81.6% of transactions with 6,382 deals valued at €1.77 billion. In contrast, house sales represented a smaller segment, encompassing 1,437 transactions and generating €737.9 million. The record-high transaction was noted in Limassol, where an apartment sold for approximately €15.2 million, while the priciest house fetched roughly €6.2 million.

Regional Analysis

Nicosia: The capital recorded steady domestic demand with 2,171 new residential transactions. Apartments accounted for 1,836 deals generating €349.6 million, compared to 335 house transactions worth €105.5 million, anchoring Nicosia as a core market with average values of €190,000 for apartments and €315,000 for houses.

Limassol: As the island’s principal investment center, Limassol led overall activity with 2,207 transactions. Apartments dominated with 1,936 sales generating €824.1 million, while 271 house transactions added €157.9 million. The district enjoyed premium pricing, with apartments averaging over €425,000 and houses around €583,000.

Larnaca: This district maintained robust activity with a total of 2,020 transactions. The apartment segment realized 1,770 transactions worth €353 million, and houses contributed 250 deals valued at €96.3 million. Average prices hovered near €200,000 for apartments and €385,000 for houses, positioning Larnaca within the mid-market bracket.

Paphos: With a more balanced mix, Paphos completed 1,078 transactions. Ranking second in overall value at €503.2 million, the district saw house sales generate €287.8 million and apartments €215.4 million. Consequently, Paphos achieved the highest average house price at approximately €710,000 and an apartment average of €320,000, emphasizing its premium housing profile.

Famagusta: Distinguished by lower transaction volumes, Famagusta was the sole district where house sales outnumbered apartment deals. Out of 343 transactions, 176 involved houses (yielding €90.4 million) and 167 were apartments (at €32.4 million). The segment’s average prices were about €194,000 for apartments and over €513,000 for houses, signaling its focus on holiday residences and coastal developments.

Sector Insights and Forward View

Commenting on the report, Landbank Group CEO Andreas Christophorides remarked that the analysis demonstrates an ecosystem where apartments are the cornerstone of the real estate market. He emphasized, “The apartment sector is not merely a trend; it is the engine powering the country’s real estate market.” Christophorides also highlighted the diverse regional dynamics: Limassol leads in apartment pricing, Paphos commands premium house prices, Nicosia remains pivotal to domestic demand, Larnaca sustains competitive activity, and Famagusta caters to holiday home buyers.

In a market characterized by these varied profiles, informed monitoring of regional and sector-specific dynamics is crucial for investors aiming to make targeted and strategic decisions.

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