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Resilient Growth: Cyprus Real Estate Market’s Transformative Surge In 2025

The Cyprus real estate market demonstrated robust performance in 2025, underpinned by significant growth and resilience amid global volatility. According to data published by the Department of Cadastre and Geomatics—presented quarterly by the Council of Real Estate Agents—the sector experienced a 15% increase in registered property sale deeds between January and December compared to the previous year.

Strong Market Fundamentals Across Cyprus

In 2025, a total of 18,114 registered sale deeds were documented, up from 15,797 in 2024. Although the number of property transfers saw a modest 0.77% uptick, the value of these transactions surged by roughly 10%, exceeding €4.7 billion. These indicators not only reflect growing buyer interest but also signal that investment in high-value properties is gaining traction.

Insights From Industry Leadership

Marinos Kynaigeirou, President of the Council of Real Estate Agents, commented, “The performance of 2025 is the clearest proof of the resilience and allure of the real estate sector. Despite global challenges, the market charted a robust growth trajectory, reaffirming real estate as a stable and secure investment. While heightened buyer interest is evident, the significant increase in property transfer values indicates a shift towards premium real estate investments. Looking ahead to 2026, the market is anticipated to settle, with accessible housing remaining a pressing challenge as prices continue to rise.”

Regional Analysis: Diverse Dynamics Across the Island

Nicosia: In the province of Nicosia, market activity accelerated markedly in 2025. Transfers in value broke the €1 billion threshold, reaching €1.1 billion compared to €950 million in 2024, while the number of transactions increased from 5,395 to 5,917. Additionally, new property registrations climbed to 4,115 from 3,527 one year earlier.

Lemesos: Limassol maintained its position as a leader in transactional value. In 2025, the value of transfers rose from €1.5 billion to €1.7 billion, although the number of transfers slightly dipped from 5,054 to 4,940—indicating fewer but higher-value transactions. New property registrations also increased to 5,563 from 5,032, underscoring the strengthening market interest.

Paphos: In Paphos, the dynamics were more nuanced. While new property registrations grew from 3,107 to 3,567, both the transaction volume and value experienced a slight decline, with the latter decreasing from €983 million to €968.8 million, and the number of transactions falling from 3,727 to 3,415.

Larnaka: Larnaka continued its steady upward trajectory. The value of property transfers increased from €637 million to €698.5 million, accompanied by a minor volume uptick from 3,775 to 3,855 transactions. New property registrations also surged from 3,356 to 3,978, reflecting strong market activity.

Ammochostos Free Area: In the Ammochostos region, although the total number of transfers slightly dropped from 1,204 to 1,177 transactions, their value rose from €214 million to €236.6 million. New property registrations also recorded an increase from 775 to 891, marking a positive market indicator.

Conclusion: Navigating Future Challenges

With 2025 confirming its status as a pivotal year for Cyprus real estate, stakeholders face the dual challenge of sustaining high-value property trends while ensuring housing remains accessible for the broader population.

Cyprus Hits Historic Tourism Peak As Overtourism Risks Mount

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.

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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