Cyprus Real Estate Market Overview Q3 2025: What Buyers and Investors Need to Know

Cyprus has been one of the most attractive islands for real estate purchases for many years, and it has no intention of relinquishing this title. Its mild climate, stable economy, and favorable business conditions continue to attract both international investors and foreign buyers. We are currently at the beginning of the third quarter of 2025. Despite the limited amount of fresh information available, analytical work is in full swing.

In this post, we will analyze key market trends over the past quarters and present preliminary dynamics for the beginning of the third quarter of 2025, focusing on prices, sales volumes, and demand levels in the main regions of Cyprus.

Current situation on the real estate market

According to the official report on the Cyprus real estate market in 2025, there has been a steady increase in the average price per square meter, reflecting the overall revival of the construction and investment sectors. Real estate sales volumes for the first six months of 2025 increased by 8.5% compared to the same period in 2024, indicating increased demand. In the first quarter and early second quarter of 2025, 5,541 real estate transactions were recorded. The distribution by region is as follows:

• Limassol – 1,756 transactions (+12%);
• Nicosia – 1,286 transactions (+4%);
• Larnaca – 1,185 transactions (+15%);
• Paphos – 1,067 transactions (+6%).

Particular attention should be paid to the middle of the second quarter of May 2025, when a record number of transactions was registered – 1,664, which is the highest figure since 2007. This fact underscores the sustained momentum and attractiveness of the Cypriot real estate market for investors and buyers.

Local information by region

Paphos continues to attract investors thanks to its historical heritage and developing infrastructure. According to Cyprus real estate sales statistics for 2025, the average price of housing in Paphos has increased by 6% over the past year, reaching €2,400 per square meter. New projects in Paphos are focused on comfortable housing with modern amenities, which increases their appeal for both long-term living and renting. Villas and apartments by the sea are particularly in demand.

Limassol remains the most expensive region for purchasing real estate in Cyprus. Prices in 2025 showed an increase of 7%, with the average cost per square meter being around €3,100. High demand is supported by both local buyers and investors from Eastern European countries. The Limassol market is characterized by active construction of business-class residential complexes and commercial real estate, which creates favorable conditions for long-term investments. In addition, the modernization of the port and infrastructure contributes to the growth of the city’s investment value.

Larnaca is showing moderate but stable price growth of around 4% annually, with an average price of €1,900 per square meter. The market in this region is attractive to buyers looking for more affordable housing options with good transport links, given Larnaca’s international airport. The apartment and townhouse segment deserves special attention, as it is in demand among families and young foreign professionals.

Nicosia, the capital of Cyprus, shows less dynamic growth compared to other Cypriot giants: about 3% in 2025. The average price per square meter in the city is €1,800. Nevertheless, despite moderate growth rates, Nicosia offers interesting opportunities for investors focused on commercial real estate and mid-range properties. The main drivers of demand here are government agencies, office space, and the growing rental market.

Prospects and trends

• Increased interest in coastal real estate. In particular, Paphos and Limassol remain the focus of investors thanks to their quality of life and developed infrastructure.
• Growing demand for green and energy-efficient housing. More and more buyers and developers are taking environmental standards and energy efficiency into account when choosing and building properties.
• Strengthening role of foreign investors. According to Cyprus 2025 real estate sales statistics, foreigners account for more than 60% of the total volume of transactions in 2025, which underscores the international appeal of the market.
• Development of the rental housing segment. Growing tourist flows and remote work are stimulating demand for properties with long-term and short-term rental options.
• Technological innovations in transactions. The emergence of digital platforms for managing transactions and remote document processing facilitates the process of purchasing real estate for foreigners.

Why now is the time to invest

Cyprus has repeatedly demonstrated its resilience during periods of geopolitical uncertainty and times of sharp fluctuations in inflation and deflation. Thanks to its stable institutional framework, EU membership, and balanced fiscal policy, the country remains a reliable destination for long-term real estate investments. According to experts’ forecasts, in the third quarter of 2025, the Cyprus real estate market will maintain stable growth with a moderate increase in both prices and sales volumes. However, as practice shows, additional high-quality analytics has never been superfluous.

Hinode is a reliable partner in the field of civil construction in Cyprus. We have many years of experience, international education, and in-depth knowledge of the local market. We act exclusively in the interests of our clients, providing high-quality and results-oriented services. With us, you can discuss your investment strategy in Cyprus, receive detailed feedback and practical recommendations based on real data and current market trends.