The Cyprus property market has made an impressive start to 2025, with property sales contracts increasing by 21% year-on-year in January. According to the Department of Lands & Surveys, all districts showed growth, with Famagusta leading with a 40% rise, followed by Limassol at 36%. Larnaca saw a 20% increase, Nicosia registered a 13% rise, and Paphos experienced a 5% growth.
This surge in property sales reflects growing investor confidence, supported by economic stability, foreign investment, and local demand. Limassol continues to attract business buyers, while Famagusta’s coastal properties gain attention. Larnaca’s infrastructure developments are also driving sales, and Nicosia remains stable as the capital.
Follow THE FUTURE on LinkedIn, Facebook, Instagram, X and Telegram
However, MPs have raised concerns about rising property prices driven by foreign buyers, which could affect local buyers, particularly young couples. Foreign property ownership is typically permitted within the EU, but some countries impose restrictions. For example, Spain is considering higher property taxes for non-EU buyers in response to its housing crisis.
Market Segment Breakdown
- Domestic Market: Property sales to Cypriot buyers increased by 27%, accounting for 60% of total sales. Growth was significant in Limassol (+50%), Larnaca (+22%), and Nicosia (+18%).
- Overseas Market: Sales to foreign buyers rose by 12%. Famagusta (+74%) and Limassol (+16%) saw notable increases, while Nicosia experienced a 10% decline.
- EU Citizens: Sales to EU nationals surged by 44%, with Famagusta showing a remarkable 533% increase from just 3 transactions in January 2024 to 19 in January 2025.
- Non-EU Citizens: Sales to non-EU buyers grew modestly by 1%, though some districts saw declines, particularly Nicosia (-27%) and Paphos (-15%).
Foreign buyers continue to dominate Paphos, where nearly 75% of property transactions are made by non-Cypriots.
