Driven by apartment sales and resilient local demand, the market shows strength despite a changing landscape

Total value of real estate transactions reached a record of €5.71 billion in 2024, a modest increase of one per cent on the previous year, according to a report by PWC released earlier this month.

The record high was achieved despite a decline of the total number of transactions by 3 per cent, to 23,900, but this was no cause for concern.

“Despite the persistence of global economic challenges, the real estate market in Cyprus displayed a remarkable stability throughout the year,” the report said.

Nicosia district recorded a 4 per cent rise in transaction volume. While coastal cities experienced minor drops, Limassol maintained its leading position, accounting for 44 per cent of total transaction value, followed by Nicosia and Paphos.

Residential real estate remained the primary driver of the market, generating €3.8bn in transactions, which accounted for 67 per cent of the total value of transactions.

Meanwhile, commercial real estate showed a marked uptick in value, offsetting declines in other categories. Most of these transactions were recorded in the main commercial districts of Nicosia and Limassol.

Demand by foreign buyers declined by 10 per cent overall in 2024, although some districts bucked the trend. Nicosia Famagusta and Larnaca recorded growth in foreign interest, said the PWC report.

Although there was a decline in foreign purchases in Paphos and Limassol, these districts still accounted for more than 60 per cent of all property sales to foreign nationals.

The luxury housing market also performed well, accounting for nine per cent of the total value of transactions. There were 188 transactions of properties valued above €1.5m, totalling €500m.

Limassol remained the dominant district for luxury transactions, taking 74 per cent of this expenditure, followed by Paphos with 19 per cent. The remaining three districts together took just seven per cent of the luxury housing expenditure.

Regarding development activity, the number of new building permits issued from January to November 2024 fell by 2 per cent. However, the total value of these permits increased by 2 per cent, signalling a shift toward higher-value, quality-focused projects.

Limassol and Nicosia led in terms of permitted project area. There was also notable growth in non-residential developments, including retail and office spaces.

In contrast, the tourism and leisure development segment declined, possibly indicating either market saturation or a redirection of strategic development priorities.

“In a volatile and dynamic environment full of challenges and opportunities, the real estate sector in Cyprus continues to play a key role in the country’s transition to a new economic model,” said CEO of PwC Cyprus Philippos Soseilos.

The good news is that 2025 also looks like it will be an impressive year for the property market. Both transaction volumes and sales values showed an upward trend compared to last year, according to a report prepared by the Cyprus Real Estate Agents Registration Council.

The council noted that Paphos was currently enjoying strong interest from foreign buyers, while Limassol continued to play a central role in Cyprus’ real estate market.

“It is a fact that 2025 has started on the right foot for the property market,” said Council president Marinos Kineyirou, adding: “The prospects are positive for the future, as demand remains high, while supply is beginning to respond to market needs.”

Figures compiled by the council based on data from the Department of Lands and Surveys show that 4,137 sale contracts were filed island-wide in the first quarter of 2025.

This was a remarkable 15 per cent increase compared to the 3,597 documents filed in the first three months of 2024.

Moreover, while the total number of property transfers dipped slightly by 2.9 per cent, the value of those transactions surged by 15 per cent year-on-year, surpassing €1.1bn.

Limassol continues to dominate the sector both in transaction value and in the volume of sale contracts. It recorded 1,203 property transfers worth €428.7m, and 1,295 sale contracts, confirming its role as the island’s property hotspot.

“The figures reflect strong investor interest in both new developments and resale properties,” the council said in its report.

Nicosia maintained a steady presence in the market, posting the highest number of property transfers at 1,304, with a total value of €283.5m, significantly lower than Limassol. It also recorded 932 sale contracts, with the council saying that this “indicates sustained demand for newly built properties“.

Elsewhere, Paphos continues to build on the momentum of recent years, with 811 transfers worth €199m and 829 sale contracts.

“Demand is largely driven by international buyers seeking homes and other properties in the district,” the Council explained. Larnaca registered 843 property transfers valued at €154m and saw 910 sale contracts filed.

“The district is emerging as a dynamic market, supported by a wave of ongoing investment projects within its boundaries,” the council mentioned.

The council also said that “although Famagusta posted the lowest figures among all districts – €48m in property transfers across 251 transactions – the region is also showing signs of growth”.

“A total of 171 sale contracts were submitted in the first quarter, suggesting rising investor interest possibly linked to lower comparative prices and the district’s tourism-led development prospects,” the council concluded.

With prices rising, demand for apartments showed a big increase last year, according to a report by Landbank Real Estate Analytics. New apartment sales surged, reaching 5,354 units with a total value of €1.5bn – an increase of 22.7 per cent in volume and 9 per cent in value compared to the previous year,

In contrast, sales of new houses declined by 5.6 per cent in volume and 5.7 per cent in value, with 1,108 houses sold for a total of €510.6m.

The real estate analytics firm also noted that high property prices in Limassol are causing foreign investors to seek more affordable real estate options in other parts of Cyprus.

According to the report, the total number of new residential property transactions increased by 16.7 per cent compared to 2023, with 6,462 sale contracts recorded.

Landbank Analytics CEO Andreas Christophorides attributed this growth to the robust demand for apartments in urban centres, driven byboth local and foreign buyers.

“Local buyers’ preference for apartments highlights the realities of their purchasing power when it comes to homeownership,” Christophorides said.

“Put simply, apartments are more affordable – and often more attainable – than houses,” he added.

According to Landbank’s report, Nicosiadistrict saw significant growth, with new home sales rising by 25.2 per cent in volume and 20.6 per cent in value. Apartment sales increased by 23.6 per cent to 1,587 units, reaching a total value of €301m.

However, new house sales in Nicosia declined by 6.9 per cent, with their total value dropping by 12.7 per cent to €63.5m.

Limassol saw a 4.2 per cent increase in apartment sales, reaching 1,781 units, though the total sales value fell by 5.6 per cent to €759m.

The sales of new houses in Limassol saw a sharp annual decline of 33.2 per cent in volume and 30.3 per cent in value, with only 241 units sold for €134.2m.

Moreover, Larnaca’s residential market performed exceptionally well in 2024, with apartment sales increasing by 40 per cent to 1,394 units, valued at €273m.

House sales in Larnaca rose modestly by 2.5 per cent in volume but decreased by 6.5 per cent in value, reaching €69.3m.

Paphos also posted strong results, with apartment sales jumping by 67.7 per cent to 446 units, valued at €139.2m – an increase of 33.6 per cent.

House sales in Paphos rose by 9 per cent, reaching 333 units, with a total value of €195.5m, up 13.9 per cent.

Christophorides noted a shift in foreign investor interest away from Limassol, primarily due to the elevated prices observed in its local real estate market, with buyers increasingly looking for better value elsewhere on the island.

“At the same time, we’re seeing a gradual shift in foreign buyer interest away from the high-priced Limassol market toward more affordable alternatives like Larnaca and Paphos,” he explained.

Although 2025 has started strongly, the outlook for the rest of the year will depend on a range of economic factors, including interest rate movements and construction costs. For now, the market remains buoyant, supported by steady demand and a shift toward more accessible property segments.