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Foreign Demand Remains Resilient in Cypriot Real Estate: Strategic Insights and Regional Trends

International investment continues to assert its robust presence in Cyprus’ real estate market, with 1,669 properties sold to overseas buyers over the past year, as confirmed by Interior Minister Constantinos Ioannou. This sustained global interest underscores the island’s multifaceted appeal to investors from diverse regions, enhancing the attractiveness of Cypriot real estate.

Rising International Acquisitions

Between September 2024 and September 2025, 962 homes were purchased by foreign buyers, segmented into 385 transactions by European nationals and 577 by non-European investors. Paphos emerged as a hotspot, where heightened international demand has contributed to significant price appreciations. In addition, the market saw 350 plot sales — with 218 to EU citizens and 132 to non-Europeans — complemented by 357 field transactions predominantly to European buyers.

Distinct Regional Preferences

Buyer preferences reveal a clear geographic split. Europeans have shown a marked preference for Limassol, whereas non-EU buyers are increasingly attracted to Larnaca’s growing momentum. In Nicosia, the foremost buyers were Greeks with 403 properties, followed by Romanians, Russians, and Lebanese. Famagusta recorded a dominant presence of British buyers, while in Larnaca, regional investors such as Israelis, Lebanese, and Britons have been particularly active. Limassol continued to attract substantial investments from Russians, Israelis, and Greeks, while Paphos remained a favourite among British, Israeli, and Russian buyers.

Transactional Dynamics Across Districts

The Department of Lands and Surveys (DLS) provided an expansive view of the market, noting 19,155 transfer cases in 2024 covering 21,469 properties. These transactions represent a declared value of €3.94 billion, with an accepted transfer duty value of €4.30 billion. Limassol led in both transaction volume and value, registering 5,054 cases amounting to over €1.43 billion declared. Nicosia, Paphos, and Larnaca followed, while Famagusta remained the smallest segment, reflecting differentiated regional market dynamics.

Robust Overseas Activity

Further evidence of the market’s vitality comes from the DLS’s dataset on foreign buyers, which recorded 6,754 international transactions in 2024. Among these, 2,785 were by EU nationals, with 3,969 transactions from non-EU buyers, and July emerged as the peak month with 703 non-EU contracts filed.

Challenges In Data Collection

Minister Ioannou clarified that while no hotel units were sold during this period, the data for apartment buildings remains incomplete due to challenges in tracking developments without updated or horizontally divided title deeds. Once a building is registered, each individual unit—be it an apartment, shop, or office—is recorded separately, ensuring detailed market transparency.

Central Bank Of Cyprus Balance Sheet Reflects Strong Eurosystem Position

Overview Of Financial Stability

The Central Bank of Cyprus (CBC) has released its latest balance sheet, reaffirming its steadfast role within the Eurosystem. The balance sheet, featuring total assets and liabilities of €29.545 billion, underscores the institution’s stable financial posture at the close of January 2026.

Asset Allocation And Strategic Holdings

Governor Christodoulos Patsalides issued the balance sheet, which details the CBC’s asset composition under the Eurosystem framework. Notably, the bank’s gold and gold receivables amounted to €1.635 billion, providing a significant hedge and stability to its balance sheet. Additional asset categories include claims on non-euro area residents denominated in foreign currency at €1.099 billion, while claims on euro area residents in both foreign and domestic currency add further depth to its portfolio.

The most substantial asset category, intra-Eurosystem claims, reached €19.438 billion, an indication of the CBC’s deep integration with its European counterparts. Furthermore, euro-denominated securities held by euro area residents contributed €6.587 billion. Despite a marked emphasis on these areas, lending to euro area credit institutions in monetary policy operations recorded no activity during the period.

Liability Structure And Monetary Policy Implications

On the liabilities side, banknotes in circulation contributed €3.218 billion. Liabilities to euro area credit institutions associated with monetary policy operations were notably the largest single category, totaling €17.636 billion. Supplementary liabilities included those to other euro area residents, which aggregated to €4.989 billion, with government liabilities playing a predominant role at €4.754 billion.

Other liability items, such as claims related to special drawing rights allocated by the International Monetary Fund at €494.193 million, and provisions of €596.571 million, further articulate the CBC’s exposure. Revaluation accounts stood at €1.643 billion, and overall capital and reserves were confirmed at €333.822 million, completing the picture of a well-capitalized institution.

Conclusive Insights And Strategic Alignment

The detailed breakdown illustrates the CBC’s sizeable intra-Eurosystem exposures, reinforcing its central role within Europe’s monetary landscape. With an asset-liability balance maintained at €29.545 billion, the CBC’s financial position remains robust, indicating a commitment to structural stability and strategic risk management.

This fiscal disclosure not only provides transparency into the CBC’s operations but also serves as a benchmark for comparative analysis among other central banks within the Eurosystem, highlighting the intricate balance between asset liquidity, regulatory oversight, and monetary policy imperatives.

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