Cyprus Real Estate Hits €6.5 Billion — And 2026 Is Even Stronger
The Cyprus property market closed 2025 with a record €6.5 billion in transactions — an 8% increase over the previous year, according to PwC Cyprus. A total of 25,600 properties changed hands, with residential sales accounting for 69% of the market value. But what is truly remarkable is that 2026 is shaping up to surpass even this historic benchmark.
In Q1 2026 alone, Sotheby's International Realty reported 4,308 residential sales worth €1.26 billion — a staggering 43% increase in transactions and 52% increase in value compared to Q1 2025. The momentum continued into Q2, with 4,622 transactions worth €1.38 billion, making it the strongest second quarter since 2016.
What is driving this growth? A combination of factors: sustained foreign demand (up 16% in 2025), corporate relocations — particularly from the UK following the abolition of the British non-dom regime — and a construction sector that is scaling up without overbuilding. Building permits in January–April 2026 covered 7,131 new dwelling units, a 65% increase year-over-year.
Cyprus's Central Bank has confirmed there are no signs of widespread overvaluation. Average mortgage rates remain competitive at 3.15%, and new housing loans are up 24.5% year-over-year. Unlike many overheated European markets, Cyprus is experiencing measured, demand-driven growth — what analysts at Cyprus Property News call "resilience rather than a property boom."
Looking at the district level, the picture reveals interesting shifts. Limassol still dominates by value (€2.64 billion in 2025, 41% of the national total) but its transaction count actually declined 2% — a sign of market maturation. Meanwhile, Paphos surged with a 25% increase in sales, Larnaca grew 7%, and Famagusta posted the strongest value growth at 27%. The market is broadening, creating opportunities beyond the traditional Limassol hotspot.
Foreign buyers are an increasingly powerful force. In February 2026, non-EU buyers accounted for 28.6% of all transactions (up 22% year-over-year) and EU buyers added another 15% (up 20%). Nearly half of all property sales in Cyprus now involve an international purchaser — a ratio that underscores the island's growing reputation as a safe, accessible investment destination within the eurozone.
The luxury segment (properties above €1.5 million) is also evolving. PwC data shows 203 luxury transactions worth €550 million in 2025. Notably, Paphos's share of this segment nearly doubled from 18% to 28%, while Limassol's fell from 76% to 61%. High-net-worth buyers are discovering that premium coastal living does not require Limassol price tags.
Construction activity reflects developer confidence. The total value of licensed building projects reached €3.59 billion in 2025, up 31.8% year-over-year. Apartment permits alone surged 44%. This is supply responding to genuine demand, not speculative overbuilding — and it means buyers have more choice, better quality, and competitive pricing from developers eager to attract contracts.
For investors, this combination of strong capital appreciation (prices up 7.1% overall, with apartments leading at 9.6%) and a market that has not yet peaked presents a compelling window. The data suggests Cyprus's real estate market is still in its growth phase, supported by fundamentals rather than speculation.