The Cypriot property market continued to show robust performance in May 2025, marking a significant upsurge in sales activity compared to the same month last year. The overall outlook for the property sector this year remains cautiously optimistic.
May 2025 property sales overview
A total of 1,664 property sales were recorded in May, according to the number of sales contracts deposited at the island’s Land Registry offices. This represents the highest monthly total since the record year of 2007, when 2,097 contracts were filed in May.
Compared to May 2024, when 1,268 transactions were recorded, this year’s figure reflects an impressive 30% increase. These sales encompass not only residential properties but also commercial, industrial, agricultural real estate – and land.
Contributing market factors
Several factors appear to be driving this resurgence in the market:
- A slowdown in property price increases, as noted in the Bank of Cyprus’s Q4 2024 report.
- Faster processing times for planning and building permits.
- A drop in housing loan interest rates, now averaging around 3.78%, making borrowing more affordable.
District-level highlights – May 2025
All districts reported year-on-year growth in sales during May:
- Limassol: 525 – up 18%
- Larnaca: 369 – up 37%
- Nicosia: 369 – up 26%
- Paphos: 304 – up 44%
- Famagusta: 77 – up 54%
Year-to-date sales continue upward trend
The market’s strength is further evidenced in the year-to-date figures. From January to May 2025, 7,185 properties have been sold across Cyprus – a 15% rise compared to the 6,231 sales reported during the same period in 2024.
Sales by district so far in 2025:
- Limassol: 2,281 – up 14%
- Nicosia: 1,655 – up 17%
- Larnaca: 1,554 – up 19%
- Paphos: 1,371 – up 11%
- Famagusta: 324 – up 19%
Market outlook
While external economic conditions and interest rate trends will continue to shape the market’s trajectory, the current momentum suggests that Cyprus’ property sector is on a strong footing moving into the second half of the year.
With growing investor interest, improved administrative efficiency, and favourable lending conditions, 2025 may yet prove to be one of the sector’s best years in recent memory.
However, while the local fundamentals of Cyprus’ property market are solid, it remains sensitive to external dynamics. Interest rates, geopolitical events, economic trends, and foreign buyer behaviour will all play a role in shaping the market’s performance in 2025.
