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Everything you need to know before buying real estate is included in our Cyprus Property Pack
Thinking about buying a 3-bedroom apartment in Nicosia? It’s a great area, but you're probably wondering: is now the right time to buy, or should you wait for prices to drop?
And what about long-term investment—should you look into other cities like Limassol or Larnaca where property values might appreciate more over time?
In this article, we’ll answer these questions. We know this market quite well - and we have put all our knowledge in the Cyprus Property Pack.
Will property prices increase in Cyprus in 2025?
Yes, property prices in Cyprus are expected to rise in 2025, driven by a combination of high demand and favorable economic conditions.
Backed by our fresh, in-depth market analysis, we’re confident that Cyprus remains an attractive destination for both domestic and international investors.
While there are some economic challenges like inflation and potential interest rate fluctuations, the main drivers behind Cyprus’s price growth remain strong.
Demand, especially in popular coastal areas, continues to outpace supply, making significant price drops unlikely. Additionally, Cyprus's appeal as a tourist and expatriate destination continues to attract buyers from around the world.
Signals pointing to a property price increase in Cyprus
Here are some factors suggesting prices could increase:
The ongoing recovery of the tourism sector is expected to boost the economy and increase demand for holiday homes and rental properties, particularly in coastal regions.
Government initiatives aimed at attracting foreign investment, such as the Cyprus Investment Program, are likely to continue drawing international buyers, supporting property price growth.
Infrastructure improvements, including new road networks and airport expansions, are set to enhance accessibility and attractiveness of certain areas, potentially driving up property values.
The limited availability of land for new developments in prime locations is expected to keep supply constrained, contributing to upward pressure on prices.
A stable political environment and favorable tax policies make Cyprus an appealing option for expatriates and retirees, sustaining demand for residential properties.
The trend of remote working is encouraging more international professionals to relocate to Cyprus, increasing demand for both rental and purchase properties.
The Cypriot economy is projected to grow steadily, improving consumer confidence and purchasing power, which could lead to increased property transactions.
Signals pointing to a property price decrease in Cyprus
Here are some factors suggesting prices could fall:
Potential increases in interest rates could make borrowing more expensive, reducing affordability for some buyers and potentially cooling demand.
Rising construction costs could lead to higher prices for new developments, which might deter some buyers and slow down the market.
Economic uncertainties in the Eurozone could impact investor confidence and reduce the number of international buyers looking to purchase property in Cyprus.
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If property prices go up in Cyprus, how much would they increase by?
If real estate prices in Cyprus were to rise in 2025, the increase would likely be around 3% to 7% of their 2024 values.
Typically, real estate in dynamic markets like Cyprus appreciates by approximately 3% to 7% annually over the long term. However, fluctuations can occur depending on factors such as region, season, and property type.
It means that, if you spot a charming 2-bedroom apartment in Limassol for 250,000 euros today, don't be surprised if it's priced between 257,500 and 267,500 euros this time next year.
To give you a better understanding, here is a table that shows 7 types of Cypriot real estate properties, their estimated prices in 2024, and projections for 2025 based on potential price increases of 3%, 5%, and 7%.
| Type of Property | Average Price in 2024 (€) | Price in 2025 (3% increase) | Price in 2025 (5% increase) | Price in 2025 (7% increase) |
|---|---|---|---|---|
| Seaside Apartment (60 sqm / 646 sqft) | €300,000 | €309,000 | €315,000 | €321,000 |
| Modern Villa (150 sqm / 1,615 sqft) | €500,000 | €515,000 | €525,000 | €535,000 |
| Luxury Penthouse (100 sqm / 1,076 sqft) | €750,000 | €772,500 | €787,500 | €802,500 |
| Studio (30 sqm / 323 sqft) | €150,000 | €154,500 | €157,500 | €160,500 |
| Loft (80 sqm / 861 sqft) | €400,000 | €412,000 | €420,000 | €428,000 |
| Townhouse (120 sqm / 1,292 sqft) | €600,000 | €618,000 | €630,000 | €642,000 |
| Investment Property (50 sqm / 538 sqft) | €200,000 | €206,000 | €210,000 | €214,000 |
Everything you need to know is included in our Property Pack for Cyprus
If real estate prices go up in Cyprus, which areas are likely to see the biggest increases?
Today, people who want to move to Cyprus are looking for a blend of traditional charm and modern amenities, which Limassol Marina offers. Hence, we could see a price increase there in 2025.
Also, lately, there's been a shift toward more youthful, vibrant neighborhoods, and Ayia Napa has really taken off.
We like it when information is clear and easy to digest. So, here’s a table that highlights the areas where prices might rise the most, along with the reasons behind those expected increases. It’s very high-level. If you want more details on a specific area, please check our real estate pack tailored to the Cypriot market.
| Neighborhood | Level of Increase | Why |
|---|---|---|
| Limassol Marina | High | Recent development of luxury housing projects and its increasing appeal to international buyers as travel normalizes post-pandemic, driving demand. |
| Nicosia City Center | High | Expected rise due to limited housing stock, upcoming renovations to heritage buildings, and growing demand for prime properties in central Nicosia. |
| Paphos Old Town | Medium-High | Ongoing gentrification and new transport links, along with several planned redevelopment projects in the area, are likely to push prices higher. |
| Larnaca Seafront | Medium | The shift towards hybrid workspaces is driving demand for residential properties near business districts, combined with new mixed-use developments. |
| Protaras | Medium-High | Eco-friendly urban projects and recent construction of new schools and parks are increasing its attractiveness for families, pushing prices upward. |
| Ayia Napa | High | Upcoming large-scale urban regeneration projects and improved public transport access are expected to make this area more desirable. |
| Troodos Mountains | Medium | Investment in local infrastructure, such as the extension of tram lines and renovation of historic areas, is boosting long-term value. |
| Famagusta | Medium-High | With new cultural and commercial spaces being developed, this trendy neighborhood is seeing increased demand from both residents and investors. |
| Kato Paphos | Medium-High | Its proximity to the sea, along with new office and residential developments, makes it increasingly attractive to professionals seeking more space. |
| Kyrenia | High | As new luxury developments are launched, demand for premium housing among wealthy buyers is expected to further increase property values. |
| Lefkara | Medium | Gentrification and cultural regeneration projects are attracting new residents, leading to rising prices as the area becomes more fashionable. |
If I'm looking to invest in real estate, what types of properties should I focus on for the best value appreciation in Cyprus?
In 2025, Cyprus real estate trends focus on tech-smart, energy-efficient apartments, larger suburban homes for families, properties with outdoor spaces, and eco-friendly buildings—all driving higher demand and prices. Here is a summary.
- Tech-Equipped and Energy-Efficient Apartments:
Driven by remote work and sustainability trends, these homes offer smart technology features and energy-saving systems. They cater to young professionals and tech workers, making them a hot commodity in 2025, especially in cities like Nicosia and Limassol.
- Family-Sized Apartments in Suburban Areas:
With a growing demand for larger living spaces, especially among families, suburban areas near cities like Larnaca and Paphos are seeing increased interest. Proximity to beaches, green spaces, and international schools is a major factor driving value.
- Properties with Outdoor Spaces:
Post-pandemic, outdoor spaces like terraces, balconies, or gardens have become highly desirable. In coastal areas and cities like Limassol, these features offer a much-needed escape and are likely to drive up property values.
- Eco-Friendly Buildings with Low Carbon Footprints:
Cyprus's commitment to sustainability is boosting demand for eco-certified buildings. Buyers are increasingly valuing properties that align with the island’s green goals, leading to price appreciation in this category.
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