Russians accounted for 51 per cent of foreign residential property purchases in Cyprus during 2025, a report published on Tuesday by Russian business magazine Business Petersburg showed.

Despite European sanctions and tighter banking controls affecting transactions, the publication said Cyprus continues to attract Russian investors because of its European Union membership, sizeable Russian-speaking community, favourable tax framework and permanent residence scheme available through the purchase of newly built property.

Citing real estate market executives, the report said “51 per cent of purchases were made by Russians”, with buyers primarily seeking to preserve capital, relocate businesses, particularly in the technology sector, and secure permanent residence within the European Union.

According to the report, demand is concentrated on newly built properties valued between €500,000 and €1.5 million, with Limassol, Larnaca and Paphos remaining the most sought-after locations.

It added that the opportunity to obtain permanent residence through the purchase of a newly built property worth at least €300,000 continues to be a significant incentive for overseas buyers.

The publication said Russian purchasers nevertheless continue to face obstacles when acquiring property in the Republic, largely due to enhanced compliance procedures introduced by Cypriot banks following sanctions imposed on Russia.

As a result, it said the completion of property purchases can take between three and six months as financial institutions carry out extensive due diligence checks.

The report also examined the property market in the north, where it said lower prices and more flexible payment arrangements have attracted the interest of Russian buyers.

However, it warned that the lack of international recognition of the north and continuing disputes over property ownership create “significant legal and investment risks” for prospective purchasers.

The publication advised investors to exercise caution when considering properties that had been built on land subject to ownership claims by Greek Cypriot refugees.

Despite identifying investment opportunities in the north, the report concluded that the Republic remains “the safest choice” for buyers seeking legal certainty, access to the European market and a stable investment environment.