Cyprus property prices are changing - they are rising, but at a low rate. Foreigners bought less frequently in 2024, but not by much, but Cypriots themselves, on the contrary, do not let the overall statistics fall. Forecasts for 2025 are also moderately optimistic - even atypical for the usually volatile Cypriot market. We have added up-to-date data for 2024 and compiled the forecasts.
Cyprus Economy In 2024-2025
Cyprus has experienced different times even in its recent history. Everyone remembers the banking crisis of 2013, when the savings of depositors, including foreigners, suffered. There was also a sharp decline in demand from foreigners (in 2007 they bought 11 thousand flats and houses, in 2013 - 1 thousand), and coinciding with this drop in property prices - in nine years since 2007 by 50%.
However, since the beginning of the pandemic, the republic and its economy have been doing quite well. At least, better than ‘average’ European countries. Since 2015, Cyprus' GDP has been growing faster than in the EU (in 2023, 2.5 per cent versus 0.4 per cent), and by the third quarter of 2024, growth reached 3.9 per cent.
Inflation is falling: after a sharp rise in 2020 (over 8%), it fell to 3.9% by 2023 (against the eurozone average of 5.4%), declined to 2.7% in 2024 and should fall to 2.1% in 2025.
The general economic outlook is moderately optimistic. According to the EU's assessment, the Cypriot economy in 2025 and 2026 will be stable and maintain positive dynamics. By 2026, inflation is expected to slow to 2 per cent and unemployment to 4.5 per cent. Wages will continue to rise, which will ultimately stimulate purchasing power and, as a result, the willingness to invest in property.
Forecast of the dynamics of the main economic indicators for 2025-2026 (European Commission data)
Cyprus Property Price Dynamics
The property of Cyprus in 2024 rose in price, but modestly. In general, the last time prices in the Republic decreased in the IV quarter of 2021. Impressive dynamics occurred in 2023: houses rose in price by 6.5%, apartments by 9.5% (data from KPMG and RICS). By the middle of 2024, the annual growth, according to Eurostat, decreased to 2.5%.
The average cost of a square metre of real estate in Cyprus in 2024 is € 2.5 thousand (Danos International). The highest prices in Limassol: you should focus on € 4 thousand. In Larnaca, most offers fall within the range from € 2.3 thousand to € 2.9 thousand. The average price in Paphos - about € 3 thousand per square metre. m.
The leadership of Limassol is especially noticeable in the segment of new buildings. According to Landbank Analytics, the average price of a new house here has almost reached €700 thousand, new apartments cost €558.2 thousand.
And here are the data on the prices of new buildings in other cities.
|
City |
Average price of a new house (euro) |
Average price of apartments in a new building (euro) |
|
615 |
332 |
|
|
336 |
195 |
|
|
Famagusta |
331 |
162 |
|
309 |
198 |
Cyprus Property Demand 2024-2025
The market in Cyprus, a country of around one million people, is small and therefore volatile. Any surge or fall in interest dramatically affects the fundamentals.
And it is also very dependent on foreigners: in 2023, they accounted for more than 45 per cent of transactions. In the pandemic, despite partially closed borders, the island became even more popular. First to escape Covid, as well as from high taxes here went from cold Europe; since 2022, the number of Russians and Ukrainians has risen sharply; since 2023 - Israelis.
However, Cypriots themselves bought briskly. As a result, in 2023 in the country was a record number of transactions since 2007, and in 2024 the figure was even higher - 15 797, primarily due to the local residents. The proportion of visiting buyers fell below 40 per cent - which is also significant, but not a record. The share of third-country buyers is particularly declining, with almost 20 per cent fewer buyers than a year earlier.
Demand In Cypriot Cities
While the three most popular cities for locals are Limassol, Nicosia and Larnaca (with the capital city being bought as actively as the main resort), EU citizens and other foreigners buy the most in Paphos, which Compare the Market AU has recognised as the best small city to live in 2024 - similar statistics for Limassol.
In Nicosia, Cypriots bought 15% more often in 2024 (data from the Land Department) than in 2023. The number of transactions in the capital by visitors from outside the EU increased by a quarter. However, this is just a percentage increase - in absolute numbers in Paphos and Limassol, those coming from far away buy five times more often.
Cyprus Permanent Residence Programme. Immigration to Cyprus
The interest of foreigners is largely determined by two advantages of Cyprus:
- favourable tax conditions for individuals and companies moving to the island;
- immigration programmes, in particular the still successful ‘golden visa’ - the possibility of obtaining permanent residence through the purchase of real estate.
Changes introduced in 2023 to the law allowing to apply for such residence permits (in particular, the need to prove a higher income - € 50 thousand per year for the main applicant, € 15 thousand for a spouse, € 10 thousand for a minor child), objectively did not complicate the process.
The main development in the immigration sphere in 2024 is new opportunities for skilled professionals. Now they can apply for citizenship of Cyprus after four or even three years of permanent residence in the country. The timeframe depends on the level of language skills: they will need to pass an exam to obtain a passport.
Investing In Cyprus Property
The Republic's market has never been considered highly profitable - ‘pure’ investors have more often turned their attention to other countries. However, rental income, mainly daily rentals, has been steadily growing: in the eight years since 2016, short-term rental rates for holiday accommodation on the island have soared by 60-80%, and sale prices by 30%.
Analysts at Danos International estimate that average yields in Cyprus are between 4 and 6 per cent per annum. In Limassol and Paphos the most promising objects near the sea, in Nicosia - near business districts and government buildings, in Larnaca - near the airport (there is no paradox here: near it are the best beaches, and old neighbourhoods, which are visited by tourists, and new view objects).
In 2024, the average cost of renting a flat in Cyprus was €11-22 per square metre. The most expensive city was Limassol, where average rental rates for flats reached €22 and houses €16 per square metre.
Average rental rates for flats and houses by region of Cyprus in 2024 (Statista data)
Cyprus Property Market In 2025 - Outlook
Following the fall of 2020-21 and the rise of 2022-24, there should be a calming down - a slight decrease in demand with a slight increase in prices. The Central Bank of Cyprus' forecast for mid-2024: ’Lower demand from foreign buyers and high interest rates are negatively affecting local purchasing activity and easing upward pressure on property prices... more moderate house price growth can be expected in the short term.’
Cypriot realtors are making similar predictions. Polis Kourousidis, chairman of the Association of Property Valuers, predicted a positive trend in 2025 as well. ‘Delays associated with new properties entering the market - mainly due to bureaucracy in local authorities, which started issuing permits in June 2024 - are exacerbating the lack of supply and could lead to further price increases,’ the expert noted.
Marinos Kinaigueiro, president of the Real Estate Agents Registration Board, notes: ‘The property market continues to show resilience and we are hopeful that the expected reduction in interest rates will soon lead to an increase in local transactions.’
