Cyprus Real Estate Analysis 2025: Market Stabilizing, Still Attractive

Cyprus’s property market in 2025 shows growing maturity and balance. Demand remains steady, prices are growing at a more measured pace, and yields offer solid long-term value. Below is a comprehensive, research-driven breakdown of the latest trends, regional nuances, and market outlook.

Stabilization According to KPMG

The RICS Cyprus Property Price Index with KPMG captures a market in transition:

• Q2 2025 shows moderate gains in residential segments, apartments and houses remain the strongest performers—while commercial categories like shops lag behind.
• Regional Highlights:
  • Larnaca: Tops growth charts in houses and warehouses.
  • Nicosia: Steady upward trend in all residential segments.
  • Limassol: Flat to slightly negative movements, especially in retail and storage.
  • Paphos: Modest rise in apartment values, but a notable decline in warehouses.
  • Famagusta: Particularly strong increases in office space. 
• Returns (Yields) remain stable, with apartments at ~5.4%, houses ~2.97%, and retail showing slight decline—signaling continued attractiveness for residential investors. 

Broader Market Dynamics & Regional Trends

Price Pressure Easing (Global Property Guide)

• As of Q3 2024, residential prices are still rising but at a slower pace (6.51% YoY inflation-adjusted), down from ~7.8% prior.
• Apartments outpace houses with ~8.1% growth vs. ~5.3%.
• Regional performance varies: Paphos (~11%) and Famagusta (~10.3%) outperform Nicosia (~2%).

Volumes & Pricing Momentum (Hinode Q3 2025 Report)

• H1 2025 sales volumes rose 8.5% vs. H1 2024.
• In Q2 alone, 1,664 transactions were recorded – highest since 2007.
• Paphos recorded a 6% increase in transactions and an average price of €2,400/m².

Annual Growth Snapshot (IMIN Cyprus Index)

• Residential property prices rose 8.4% overall in the year to mid-2025.
• Paphos apartment prices soared ~8.3%, while house prices were up ~5.7%. National average was ~6.8%. 

Market Drivers & Investor Perspective

Strong Demand with Balanced Supply

Market sentiment remains bullish: strong buyer interest continues alongside a healthy pipeline of listings—both local and foreign investors remain active.

Yields & Liquidity

Yields remain in the 4–6% range, offering upside for income-focused investors.

Sector Nuances

• Leisure & Holiday Homes: High demand, especially in Larnaca and Limassol – boosted by tourism. 
• High-End Sales: Cyprus’s top-end market is seeing strong action, 50 highest-value sales in May totaled €75.7M, with Paphos contributing 21.2%. 

Quick Snapshot Table

Segment	2025 Trend
National Residential Prices	Growing, but at a slower pace (~6%–8% YoY)
Regional Standouts	Paphos & Famagusta leading price growth
Transaction Volumes	Up 8.5% H1; Q2 volumes highest since 2007
Rental Yields	Stable at ~4–6%; apartments best returns
Commercial & Retail	Weak performing; limited investor appeal
Luxury & Leisure Properties	Strong demand; high value transactions especially in Paphos
Market Outlook	Stable and resilient; balanced supply/demand supports prices

Bottom Line

Cyprus’s real estate market in 2025 is stable yet active. Residential demand remains strong, prices are growing sustainably, and investor returns look solid—especially for apartments and holiday homes. Regions like Paphos stand out for their upward trajectory. Commercial segments, especially retail, remain the weakest link.

For deeper reports, regional insights, and strategic guides, be sure to explore Soneverse and our Real estate Guide – your complete Cyprus resource.