Will the real estate market collapse?

The Cypriot real estate market faces no threat of a bubble or potential collapse, according to Polis Kourousides, Chairman of the Cyprus Association of Property Valuers.

Why the Cypriot market remains stable

• Foreign investors mainly purchase real estate using their own funds rather than bank loans.

• Cypriot buyers can obtain mortgages only after thorough bank assessment, preventing uncontrolled lending.

• After the 2007–2010 financial crisis, the market went through a period of price correction and has since been growing gradually, without sharp fluctuations.

The role of foreign investors

According to the expert, the influx of foreign buyers brings substantial benefits to the economy:

• Developers are launching new construction projects.

• The government collects additional tax revenues.

• Companies are relocating their operations to Cyprus, creating new jobs.

• The service sector – including restaurants, retail, and entertainment – continues to expand.

Regional trends

• Paphos – continues to grow successfully, attracting foreign investors.

• Limassol – has demonstrated stable price growth for many years.

• Larnaca – has been developing rapidly in recent years and is becoming increasingly popular among foreigners.

• Nicosia – remains one of the most stable property markets not only in Cyprus but also across Europe.

Expert conclusion

Investment in Cypriot real estate remains a reliable and profitable option.

• Purchasing property on the secondary market allows buyers to avoid VAT and generate stable rental income.

• However, rising interest rates may slightly reduce investor activity.