Cyprus Property Market Shows Strong 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.

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 apartment PROPERTY MARKETs 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.