cyprus real — The Cyprus real estate market achieved a remarkable milestone in 2025, reaching a total value of €6.5 billion, as reported by PwC Cyprus. This unprecedented growth was driven by record-high transaction activity, marking an 8 per cent increase from the previous year’s €6 billion.
Transaction numbers also saw a notable rise, with a total of 25,600 properties changing hands, reflecting a 4 per cent increase. The average monthly transaction value climbed to €543 million, showcasing the sector’s resilience and ongoing strength.
This impressive performance unfolded against a backdrop of economic growth, with Cyprus’ economy expanding by a provisional 3.8 per cent in 2025, following a strong previous year. Inflation slowed significantly to 0.8 per cent, buoyed by robust domestic consumption and favourable financing conditions.
Philippos Soseilos, chief executive and chairman of PwC Cyprus, highlighted that the report includes a thorough analysis of the market’s dynamics throughout 2025, particularly focusing on residential properties and construction trends. He indicated that the residential sector remained the primary driver of activity, with foreign investments gaining renewed momentum across all districts.
In terms of district performance, Famagusta experienced the most significant increase in transaction value, soaring by 27 per cent, while Paphos followed with a 17 per cent rise. Nicosia and Larnaca both recorded a 15 per cent increase. Limassol, despite experiencing a slight decline of 3 per cent, still accounted for 41 per cent of the total market value.
Residential real estate transactions reached €4.5 billion, representing 69 per cent of the total market. A total of approximately 15,900 apartments and houses were sold, marking a 7 per cent increase from the previous year. Apartments emerged as the primary growth segment, making up 42 per cent of the total transaction value and 43 per cent of the volume.
Foreign buyer activity surged in 2025, with properties acquired by foreigners rising by 16 per cent to 7,255. This influx meant that foreign buyers accounted for roughly 28 per cent of all transactions, a notable increase from 25 per cent in 2024. The coastal regions of Paphos, Larnaca, and Limassol attracted a substantial portion of foreign investment, contributing to around 80 per cent of the growth in foreign acquisitions.
High-end real estate remained stable, with 203 transactions involving properties valued over €1.5 million. These luxury deals totalled €550 million, accounting for 8 per cent of the overall transaction value. Limassol continued to lead the high-end market, although Paphos increased its share to 28 per cent.
The residential property index prices rose by 5 per cent, driven by sustained domestic demand and rising construction costs. While a gradual moderation in demand is anticipated as supply increases, current projections remain positive.
Construction activity also thrived, with the number of new building permits issued from January to October 2025 rising by 9 per cent. The total value of these permits grew by 28 per cent, indicating a strategic shift towards higher-quality projects, particularly in hotel and leisure developments.
Constantinos Constantinou, leader of the real estate industry at PwC Cyprus, stressed the necessity for the sector to adapt to changing market dynamics. He urged stakeholders to focus on sustainability and long-term value creation amid uncertain geopolitical developments that could impact future growth.
