Current Market Trends in Cyprus Real Estate
Analysis of Cyprus property market trends in 2025. Covers residential, commercial, and tourism real estate sectors with insights and case studies. The Cyprus property market is evolving rapidly, shaped by economic recovery, foreign investment, and shifting demographics. Residential, commercial, and tourism sectors each display distinct dynamics.
Residential Market Trends
• Apartments: Strong demand in urban centres like Nicosia, Limassol, and Larnaca.
• Villas: Popular among foreign buyers in coastal areas such as Paphos and Ayia Napa.
• Urban vs. Rural: Urban properties command higher prices, while rural areas attract retirees seeking affordable living.
• Prices: 2020–2025 data shows steady 4–6% annual growth in major cities.
Commercial Real Estate Trends
• Offices: Demand increased in Limassol due to the fintech and shipping sectors.
• Retail: Mixed performance—malls thrive, small shops face challenges from e-commerce.
• Logistics: Rising demand for warehousing due to e-commerce and regional trade.
• Prices: Prime office spaces up 8% since 2020, retail mostly stable.
Tourism Sector Trends
• Holiday Homes: High demand from European retirees and second-home seekers.
• Short-Term Rentals: Airbnb and Booking.com rentals are popular in tourist hubs.
• Hotels: Post-pandemic recovery boosted investment in boutique and resort hotels.
• Prices: Villas near tourist hotspots gained 10–15% in value since 2020.
Case Study: Limassol Luxury Market
Luxury apartments in Limassol reached record highs, with seafront units priced at €7,000–€9,000 per sqm. Foreign investment, especially from Russia, Israel, and the Middle East, continues driving growth.
Case Study: Paphos Retirement Homes
Paphos remains attractive to retirees from the UK and the EU. Affordable villas and apartments, combined with lifestyle appeal, sustain steady demand.
Checklist for Monitoring Market Trends
1. Track Central Bank and Land Registry reports.
2. Follow publications from RICS and PwC Cyprus.
3. Compare residential and commercial price indices.
4. Monitor tourism arrivals and hotel occupancy rates.
5. Assess foreign buyer activity by nationality.
FAQs on Cyprus Market Trends
Q: Are property prices still rising?
A: Yes, moderate growth continues, especially in urban and coastal areas.
Q: Is commercial property profitable?
A: Offices and logistics show growth, retail is mixed.
Q: Which sector attracts most foreign buyers?
A: Villas and luxury apartments in coastal cities.
Q: Will prices drop in rural areas?
A: Less demand keeps prices stable but growth is limited.
Q: How does tourism affect property?
A: Strongly—short-term rentals boost demand near tourist hubs.
Final Recommendations
Investors and buyers should align their strategies with sector-specific trends. Residential demand remains strong in cities, commercial opportunities grow in logistics and offices, and the tourism sector continues to drive villa and holiday rental markets.