In an article published in INBusinessnews, the President of the Cyprus Real Estate Agents Registration Council Marinos Kineyirou writes that the Cyprus property market has entered 2025 with vigour, continuing the resilience and strong demand that characterised the previous year.
Demand remains buoyant among both local buyers and international investors, particularly from non-EU markets such as Israel and Lebanon, with geopolitical tensions showing little sign of dampening appetite. Many of these transactions involve significant capital commitments.
Healthy supply underpins stability
A key positive in the current climate is the depth of supply. A broad selection of properties is available, catering to diverse buyer needs.
Provided there are no major shocks in the global environment in the months ahead, market sentiment suggests sustained purchasing activity throughout 2025. Prices are expected to hold steady at current levels, supported by a healthy balance between supply and demand.
Eurostat figures show that while housing prices are climbing sharply across much of Europe, Cyprus is charting a more measured path. In Q1 2025, Cypriot property prices rose by 2% year-on-year, well below the EU average of 5.7% and the Eurozone’s 5.4%, signalling a steadier and less inflationary trajectory.
What is driving demand?
Persistently high prices present challenges for local buyers. Despite gradually easing mortgage rates, the broader cost-of-living pressures are constraining household budgets, making home ownership increasingly difficult for many.
Foreign investment continues to play a major role in price trends. Locally, many investors are also turning to bricks and mortar as a safe-haven asset, given the negligible returns on bank deposits. With deposit interest rates at historic lows, property offers a more compelling route to generating meaningful returns.
Dispelling a common misconception
The belief that licensed estate agents are artificially inflating property prices is unfounded. Our role is to secure the best achievable terms for clients, facilitating transactions rather than distorting the market.
Ultimately, pricing is set by property owners and shaped by the fundamental forces of supply and demand.
District highlights
- Limassol remains the leading market for high-end and luxury properties.
- Paphos has seen marked demand growth over the past two years from both domestic and overseas investors.
- Larnaca is attracting heightened interest in smaller units, primarily one and two bedroom apartments in suburban areas. While prices there have risen significantly over the past three years, they remain more competitive than in other cities, appealing to buyers from Nicosia and Limassol seeking better value.
Looking ahead
The Cypriot property market is in a phase of high activity and notable stability, offering attractive opportunities for investors while grappling with the challenge of affordability for local residents.
Ongoing market monitoring and responsiveness to evolving conditions will be essential to sustaining this momentum.
Marinos Kineyirou MRICS, President of the
Cyprus Real Estate Agents Registration Council
