Cyprus property market breaks records. Why housing keeps getting more expensive despite the crises

The market in spite of everything

Despite geopolitical tensions and economic uncertainty, Cyprus’s real estate market is going through its best period since 2007.

The biggest surprise is that it is being supported not only by foreign investors. Even in the country’s most expensive city, Limassol, most buyers are Cypriots. In June, 727 transactions were recorded there, and only about a third involved foreign buyers. This disproves the widespread belief that the market exists solely on foreign capital.

June was a record month

In June, 1,964 property transactions were registered in Cyprus — 27% more than a year earlier. For the first half of the year, sales rose by 15%, surpassing 10,000 properties.

The most impressive growth was recorded in Limassol — up 64% in a single month. Paphos rose by 28%, Nicosia by 10%, and Larnaca by 6%. Only Famagusta ended the month with a slight decline.

However, experts urge caution against overinterpreting June’s figures. Some transactions may have been registered with a delay, so it is more accurate to assess the results for the entire half-year. And those confirm that the market has been growing steadily for the fifth year in a row.

Who is buying property today

Foreign buyers continue to invest actively in Cypriot real estate. In June, they purchased 816 properties — 41.5% of all transactions, compared with 37% a year earlier.

Still, the majority of purchases are made by Cypriots. It is the combination of domestic demand and interest from foreign investors that ensures the market’s current resilience. At the same time, Paphos remains the main center of foreign demand, while Limassol is the island’s business capital.

Why housing is getting more expensive

The reason is simple: there are more buyers, but building cheaper is not becoming any easier.

• According to Eurostat, housing prices rose by 3.8%.
• At the same time, construction is becoming more expensive — costs for materials, labor and production are increasing.

These costs inevitably affect the price of new properties. According to the Central Bank of Cyprus, high demand and rising construction costs will remain the main factors driving further price increases.

The main challenge

The flip side of the market boom is a rapid decline in housing affordability for Cypriots themselves. Experts warn that if the supply of new homes does not grow faster, prices will continue to rise and buying a home will become even more difficult.

New restrictions may come in the autumn

As early as September, Cyprus’s parliament will consider a bill tightening the rules for property purchases by third-country nationals. This is not about a ban, but about additional restrictions on buying agricultural land, properties in environmentally protected zones and near strategic infrastructure, as well as stronger oversight of corporate transactions.

What comes next?

Today, Cypriot real estate remains one of the most resilient in Europe. However, the main question is no longer whether growth will continue, but whether a balance can be maintained between investors’ interests and housing affordability for island residents. This will determine the market’s further development.