Cyprus Real Estate Market Stabilizes: Foreign Demand Drives Growth

Foreign buyers continue to offset the effects of high interest rates and construction costs.

Market Stability Amid Inflation

Cyprus’ real estate sector remains resilient despite global economic fluctuations. According to the Central Bank of Cyprus, the House Price Index (HPI) rose by 4.7 % year-on-year in Q2 2025, with a quarterly increase of 1.5 %. This indicates a gradual normalization after the strong growth seen during 2023–2024.

Apartments Lead the Way

Apartments remain the strongest segment, recording a 5.3 % annual price increase. Limassol and Larnaca continue to attract strong foreign demand, with luxury seafront developments in Limassol rising by 6–8 % over the past year. Paphos follows closely with a 4–5 % increase.

Detached Housing Slows Down

Detached houses show slower price growth - only 3.4 % annually - due to higher mortgage rates and increased supply in suburban areas.

Who’s Driving Demand

Foreign investors from Israel, the UK, China, and Russia remain the most active buyers. Cyprus continues to be seen as a safe and stable investment destination, offering Eurozone security, a transparent legal framework, and a favorable lifestyle environment.

Outlook

Analysts expect steady performance through 2026, with apartments and rental-driven investments remaining the strongest segments, particularly in cities with developed business and tourism infrastructure.