In June, Demand for Real Estate in Cyprus Soared by 16.8%
June 2025 saw a remarkable awakening in the Cyprus property market, with active transactions surging 17% year-over-year—the highest June figures since 2007. According to Land Registry data, 1,544 sales contracts were lodged in June 2025, compared to 1,322 in June 2024—a striking increase of approximately 16.8%.
What’s Driving the Surge?
This uptick is broadly based, spanning residential, commercial, industrial, and land sectors . While the Land Registry doesn’t provide a breakdown by type, prior trends suggest residential properties—especially apartments and villas—account for about half of these transactions. Two key factors driving this rise:
1. Renewed Confidence from Domestic & Regional Buyers
Local demand remains strong, supported by lower mortgage interest rates (~3.78%) and improved lending conditions. Many Cypriots are purchasing homes again, reflecting economic rebound after COVID-19.
2. Continued Foreign Investment
Although the Cyprus Golden VISA program has ended, interest from overseas buyers—particularly from EU and non-EU countries—continues to rise. Foreign buyers now only slightly trail local purchasers but remain significant contributors to market activity
Regional Highlights
Growth isn’t uniform across the island. In June:
- Larnaca led with a 44% increase in sales—driven by foreign investment.
- Famagusta saw a 21% jump.
- Limassol and Paphos both recorded solid growth around 13–17%.
Limassol, already Cyprus’s busiest real estate district, accounted for 44% of total market value, particularly in luxury and commercial segments.
What This Means for Buyers & Investors
- Positive Momentum: The ongoing rise in sales signals a buoyant market—encouraging for sellers, but potentially signaling above-average price inflation.
- Supply Constraints: Even with healthy goodwill, supply in key areas is struggling to keep pace with demand, placing upward pressure on prices .
- Regional Solidarity: With growth spreading beyond Limassol to areas like Larnaca, Paphos, and Famagusta, more regions are worth watching for development and investment opportunities.
Looking Ahead
Cyprus’s property market is entering the second half of 2025 on a strong footing—approaching levels not seen since the 2007 boom. But this peak in demand makes it essential for buyers and developers to carefully evaluate:
- Valuation risks if prices continue to rise faster than supply.
- Opportunities in smaller cities, where pick-up is strong but competition is lower.
- Economic headwinds, such as rising construction costs and potential interest rate changes.
Final Thoughts
Yes — Cyprus is seeing impressive demand growth, but it may still be building momentum rather than peaking. For both buyers and investors, understanding regional variations, financing trends, and supply dynamics will be key to making informed decisions in the months ahead.
Interested in navigating this dynamic market? Contact The Property House—our expert team can help you explore opportunities and develop strategic insights tailored to your needs.