A Historic Year for Cyprus Real Estate
The Cyprus property market achieved a landmark milestone in 2025, recording €6.5 billion in total transactions — an 8% increase from 2024. The number of individual deals reached 25,600, up 4% year-on-year, confirming sustained structural demand rather than speculative activity.
Residential property accounted for €4.5 billion (69% of total volume), with apartments representing 60% of overall growth and 80% of new sales. This shift toward apartment living reflects changing demographics, urbanization trends, and the preferences of international buyers seeking lock-and-leave investment properties.
Foreign Buyer Demand Surges 16%
International buyer activity increased by 16% in 2025, with coastal cities absorbing 80% of this growth. Paphos, Larnaca, and Limassol remain the primary destinations for foreign purchasers, driven by the permanent residency program, favorable tax regime, and lifestyle appeal.
The luxury segment (properties above €1.5 million) recorded 203 transactions totaling €550 million in combined value. While Limassol dominated this segment, Paphos and Larnaca are emerging as alternatives for buyers seeking better value.
Limassol Maintains Market Leadership
Limassol retained the largest market share at 41% of total transaction value, reinforcing its position as Cyprus's premier property market. The city's combination of maritime industry, financial services, technology companies, and luxury waterfront development continues to attract high-net-worth individuals and corporate relocations.
According to Eurostat data, house prices in Cyprus have risen 52.9% since 2015, with Q4 2025 recording 7.1% year-on-year growth. This positions Cyprus among the strongest performing markets in the eurozone.
Market Outlook for 2026
Several factors support continued growth in 2026: the abolition of stamp duty (effective January 2026), potential Schengen accession improving accessibility, and sustained demand from technology sector relocations. However, the corporate tax increase to 15% and tighter AML regulations may moderate speculative activity.
- Stamp duty abolished from January 2026 — reducing transaction costs by 0.15-0.20%
- Corporate tax increase to 15% aligns Cyprus with OECD Pillar Two minimum
- Schengen accession expected 2026-2027 — will boost tourism and property demand
- Apartment prices forecast to grow 6-9% in 2026
- Foreign buyer quotas remain uncapped for EU nationals
What This Means for International Buyers
The record market performance validates Cyprus as a mature, liquid real estate market with strong fundamentals. For international buyers, the combination of abolished stamp duty, permanent residency options, and potential Schengen access creates a compelling window of opportunity.
However, rising prices mean that the €300,000 minimum investment for permanent residency now buys less property than it did two years ago. Buyers should act with clear objectives and professional guidance to identify properties that meet both residency requirements and investment criteria.