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

by THEFUTURE.TEAM

January 23, 2026

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.

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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.

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Cyprus Hits Historic Tourism Peak As Overtourism Risks Mount

by THEFUTURE.TEAM

February 13, 2026

Record-Breaking Performance In Tourism

Cyprus’ tourism sector achieved unprecedented success in 2025 with record-breaking arrivals and revenues. According to Eurobank analyst Konstantinos Vrachimis, the island’s performance was underpinned by solid real income growth and enhanced market diversification.

Robust Growth In Arrivals And Revenues

Total tourist arrivals reached 4.5 million in 2025, rising 12.2% from 4 million in 2024, with momentum sustained through the final quarter. Tourism receipts for the January–November period climbed to €3.6 billion, marking a 15.3% year-on-year increase that exceeded inflation. The improvement was not driven by volume alone. Average expenditure per visitor increased by 4.6%, while daily spending rose by 9.2%, indicating stronger purchasing power and higher-value tourism activity.

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Economic Impact And Diversification Of Source Markets

The stronger performance translated into tangible gains for the broader services economy, lifting real tourism-related income and overall sector turnover. Demand patterns are also shifting. While the United Kingdom remains Cyprus’ largest source market, its relative share has moderated as arrivals from Israel, Germany, Italy, the Czech Republic, the Netherlands, Austria, and Poland have expanded. This gradual diversification reduces dependency on a single market and strengthens resilience against external shocks.

Enhanced Air Connectivity And Seasonal Dynamics

Air connectivity has improved markedly in 2025, with flight volumes expanding substantially compared to 2019. This expansion is driven by increased airline capacity, enhanced route coverage, and more frequent flights, supporting demand during shoulder seasons and reducing overreliance on peak-month flows. Seasonal patterns remain prominent, with arrivals building through the spring and peaking in summer, thereby bolstering employment, fiscal receipts, and corporate earnings across hospitality, transport, and retail sectors.

Structural Risks And Future Considerations

Despite strong headline figures, structural challenges remain. The European Commission’s EU Tourism Dashboard highlights tourism intensity, seasonality, and market concentration as key risk indicators. Cyprus records a high ratio of overnight stays relative to its resident population, signalling potential overtourism pressures. Continued reliance on a limited group of origin markets also exposes the sector to geopolitical uncertainty and sudden demand swings. Seasonal peaks place additional strain on infrastructure, housing availability, labour supply, and natural resources, particularly water.

Strategic Investment And Market Resilience

Vrachimis concludes that sustained growth will depend on targeted investment, product upgrading, and continued market diversification. Strengthening year-round offerings, improving infrastructure capacity, and promoting higher-value experiences can help balance demand while preserving long-term competitiveness. These measures are essential not only to manage overtourism risks but also to ensure tourism remains a stable pillar of Cyprus’ economic development.

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