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The Cyprus property market is not crashing as of September 2025, but it is showing clear signs of moderation after years of strong growth.
Property prices in Cyprus have continued rising over the past 12-24 months, with apartments seeing growth up to 10.7% annually and coastal cities like Limassol experiencing price jumps exceeding 20%. However, experts are noting emerging risks including oversupply in luxury segments, tighter mortgage lending, and moderating foreign buyer demand that signal a cooling market rather than a crash.
If you want to go deeper, you can check our pack of documents related to the real estate market in Cyprus, based on reliable facts and data, not opinions or rumors.
Cyprus property prices rose significantly in 2024, with apartments up 8-20% and houses up 5-12% depending on location.
The market shows mixed signals with record transaction volumes but emerging risks in luxury segments and tighter lending conditions.
| Market Indicator | Current Status (Sep 2025) | Trend Direction |
|---|---|---|
| Average Price Growth (2024) | Apartments +8-20%, Houses +5-12% | Moderating |
| Transaction Volume | +19-25% YoY, Record 25,400 in 2023 | Strong but slowing |
| Foreign Buyer Share | 45% of market | Stable with luxury slowdown |
| Mortgage Rates | 4.25%-5.0% | Rising with tighter criteria |
| Rental Yields | 5-7% gross in key cities | Stable to slightly up |
| Construction Costs | Up 8-12% vs 2023 | Growth pace slowing |
| Market Outlook | Stabilization expected | Modest growth predicted |
How much have Cyprus property prices changed over the last 12 to 24 months?
Cyprus property prices have increased significantly over the past 12-24 months, with apartments leading the growth at up to 10.7% annually nationwide.
The Limassol property market experienced the most dramatic increases, with apartment prices jumping over 20% and house prices rising by 30% in the first nine months of 2024 compared to the previous year. Larnaca followed with strong price growth of 18.1% in 2024, though average prices remain lower than Limassol levels.
Paphos apartments saw prices rise from €2,000-€3,000 per square meter in 2023 to €2,200-€3,500 in 2024. Nationally, property price growth accelerated throughout 2024, starting at 2.5% annually in Q1 and reaching 6.5% by Q3, with apartments consistently outperforming houses with growth rates up to 8.8%.
House prices across Cyprus showed more moderate but still substantial increases of 5.7% annually between 2023 and 2024. The coastal cities have driven most of this price appreciation, while inland areas experienced more modest growth rates.
As of September 2025, this upward trend is showing signs of moderation, particularly in the luxury segments where price growth is expected to stabilize.
What are the current average prices per square meter for apartments and houses in major Cyprus cities?
Cyprus property prices vary significantly by location, with Limassol commanding the highest prices and Larnaca offering the most affordable options.
| City | Apartments (€/m²) | Houses/Villas (€/m²) | Prime/Seafront (€/m²) |
|---|---|---|---|
| Limassol | €2,140-€3,500 | €2,500-€4,000 | €4,000-€10,000 |
| Nicosia | €1,800-€2,500 | €2,200-€2,800 | €2,518 (average) |
| Larnaca | €1,330-€2,800 | €1,500-€3,200 | €4,000 (beachfront) |
| Paphos | €1,780-€3,000 | €2,000-€3,500 | €4,000 (coastal) |
How many property transactions are currently being recorded compared to last year?
Cyprus property transaction volumes have reached record levels, with significant year-over-year increases recorded throughout 2024.
Contracts for new residential properties rose 19.2% in early 2024, reaching 5,253 contracts compared to the same period in 2023. The total sales value increased even more dramatically by 25%, indicating both higher transaction volumes and rising property values.
The year 2023 established a new benchmark with Cyprus recording a record 25,400 property transactions worth €5.6 billion, with residential sales serving as the primary driver of this growth. Limassol dominated the market, accounting for 41% of all transaction value, while Larnaca showed the fastest growth in both transaction volume and average price appreciation.
As of September 2025, transaction volumes remain elevated compared to historical averages, though the pace of growth is moderating from the peak levels seen in 2023-2024. The strong transaction activity reflects continued investor confidence despite emerging market risks.
It's something we develop in our Cyprus property pack.
Are foreign buyers still purchasing at the same pace, or has overseas demand slowed down?
Foreign buyer demand in Cyprus remains robust but is showing signs of moderation, particularly in the luxury property segment.
The ratio of local to foreign buyers has remained stable at approximately 55% locals to 45% foreigners, maintaining this balance consistently from 2018 through 2023. Foreign investors continue to favor Limassol and Paphos, with these coastal cities attracting the majority of overseas investment activity.
However, industry surveys indicate some slowdown in demand for high-end property segments in 2024, while mid-range apartments and houses continue to attract strong foreign interest. Luxury apartment demand is softening as international buyers become more selective about premium-priced properties.
The foreign buyer market remains supported by Cyprus's Golden Visa program and the country's EU membership benefits. Despite the moderation in luxury segments, overall foreign investment levels are expected to remain significant throughout 2025, though at a more sustainable pace than the peak years of 2022-2023.
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What is the current rental yield in key areas, and is it moving up or down?
Cyprus rental yields remain relatively stable with apartments showing slight improvement while house yields have decreased marginally.
Latest data from Q4 2024 shows rental yields for apartments rising by 1.5% yearly, while house rental yields decreased by 0.8%. Coastal cities typically offer stronger yields, often ranging between 5-7% gross, making them attractive for buy-to-let investors.
Limassol and Larnaca tend to provide the best rental yield opportunities, particularly for well-located apartments near business districts or tourist areas. Central Nicosia and some Larnaca areas report lower returns, reflecting different demand dynamics in these markets.
Paphos coastal properties can achieve attractive yields when properly positioned for the tourist rental market. The short-term rental market through platforms like Airbnb continues to perform well, especially in Limassol, Larnaca, and Paphos, with stable occupancy and nightly rates.
Overall rental yield trends suggest a market that's holding steady rather than experiencing dramatic changes, providing reasonable returns for property investors who choose locations and property types carefully.
How long does it typically take to sell a property in Cyprus right now compared to a year ago?
Property sale timeframes in Cyprus have generally shortened for popular segments but lengthened for high-end properties compared to a year ago.
Newly built apartments are now selling faster than in 2023, reflecting strong demand for modern properties in good locations. Limassol and Larnaca properties tend to sell more quickly due to active investor interest and limited supply of quality options.
However, high-end properties and luxury developments are taking longer to sell than in the previous year, as buyers become more selective and financing becomes more challenging. Large family homes in Nicosia and Paphos also experience longer listing periods compared to apartments.
The two-tier market is evident, with reasonably priced properties in prime locations moving quickly while overpriced or luxury properties face extended marketing periods. This trend reflects the overall market moderation and increased buyer selectivity.
Average time on market varies significantly by price point and location, but the general pattern shows faster sales for practical properties and slower movement for aspirational purchases.
Are banks tightening mortgage lending, and what are the average interest rates on home loans today?
Cyprus banks have significantly tightened mortgage lending criteria in 2024, with interest rates rising to between 4.25% and 5.0% depending on loan terms and borrower profiles.
Loan-to-value ratios have become more conservative, with banks requiring larger deposits and conducting more stringent risk evaluations. Approval times have lengthened as financial institutions take more time to assess applications thoroughly.
The tightening reflects both rising interest rates in the broader European market and banks' increased caution following years of rapid property price growth. Foreign buyers particularly face more scrutiny, with banks requiring comprehensive documentation of income sources and financial stability.
First-time buyers and those purchasing investment properties face the most challenges in securing favorable terms. The combination of higher rates and stricter criteria is beginning to cool demand at the margins, particularly for highly leveraged purchases.
This lending environment represents a significant shift from the more accommodative conditions of 2022-2023 and is contributing to the overall market moderation.
Is there a noticeable oversupply of new developments, especially in coastal cities like Limassol and Paphos?
Oversupply risk is rising in Cyprus coastal cities, particularly in the luxury and secondary coastal property segments of Limassol and Paphos.
Heavy post-pandemic construction activity has created an abundance of new developments, especially targeting the high-end market. Limassol has seen numerous luxury apartment and villa projects completed simultaneously, creating competition among developers and putting pressure on sales velocities.
Paphos faces similar challenges with multiple coastal developments coming to market, particularly in the luxury villa segment where buyer demand has not kept pace with new supply. Some projects are experiencing slower-than-expected sales and are offering incentives to attract buyers.
In contrast, Larnaca and Nicosia show less oversupply risk, as new construction has focused more on affordable housing segments where demand remains strong. These markets have better supply-demand balance currently.
The oversupply situation is contributing to more competitive pricing and longer marketing periods for new developments, particularly those priced at premium levels.
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What do recent reports from the Central Bank of Cyprus or real estate associations say about market risks?
The Central Bank of Cyprus and real estate advisory organizations have identified several emerging risks in the property market that warrant attention.
Official reports highlight concerns about oversupply in certain luxury segments, particularly coastal developments that may struggle to find buyers at current price levels. They note slowing price growth outside prime areas as demand becomes more selective.
The Central Bank has specifically mentioned the risk of moderate foreign demand continuing, which could impact the investment property market that has relied heavily on overseas buyers. They're monitoring mortgage lending practices and debt-to-income ratios carefully.
Real estate associations point to the challenge of rising construction costs and slower permit approvals, which dampen new supply growth but may eventually support prices through reduced competition. They emphasize the importance of realistic pricing in current market conditions.
These official assessments suggest a market in transition rather than crisis, but one requiring careful navigation by both buyers and sellers to avoid potential pitfalls.
Are construction costs and building permits rising or slowing, and how is that affecting supply?
Construction costs in Cyprus rose by 8-12% during 2023-2024 due to material price inflation, but the pace of increase is slowing in 2025.
Building permits have declined slightly as developers respond to lower profit margins caused by higher construction costs and more competitive market conditions. The combination of increased costs and moderated demand is causing developers to be more selective about new projects.
Material costs, particularly steel, concrete, and imported fixtures, drove most of the cost increases. Labor costs have also risen as the construction sector competes for skilled workers. However, recent stabilization in commodity prices is helping to moderate further cost increases.
The permit slowdown is most noticeable in speculative luxury developments, while affordable housing projects continue to receive approvals. This shift in development focus may help address oversupply concerns in high-end segments.
Reduced new supply could support property prices over the medium term, though the immediate impact is offset by existing inventory levels in key markets.
It's something we develop in our Cyprus property pack.
How is the short-term rental market, like Airbnb, performing in Cyprus this year compared to last year?
The Cyprus short-term rental market continues to perform well in 2025, though growth rates have moderated compared to the exceptional performance of 2023.
Airbnb-style rentals in Limassol, Larnaca, and Paphos maintain stable occupancy rates and nightly rates, providing reasonable returns for property owners. The tourism sector's recovery has supported consistent demand for vacation rental properties.
However, Q1 and Q2 2025 growth has been slower than the 2023 highs, reflecting both increased competition and some normalization after the post-pandemic tourism boom. More properties entering the short-term rental market has created competition for bookings.
Regulatory tightening and seasonal oversupply in tourist districts are moderating rental price growth. Some municipalities are implementing stricter regulations on short-term rentals, particularly in residential areas.
Despite these challenges, well-located and properly managed properties continue to generate attractive returns, especially those offering unique amenities or prime locations near beaches or attractions.
What are local experts and analysts predicting for the next 12 months in terms of property values and demand?
Local experts and analysts forecast price stabilization for the Cyprus property market over the next 12 months, with moderate single-digit growth likely in prime coastal cities.
Most analysts see the high-end and speculative property segments facing potential stagnation or small declines as oversupply and reduced foreign demand impact these markets. Prime coastal locations in Limassol and selected Paphos areas may continue seeing modest appreciation.
Rental yields are expected to remain steady, providing stable returns for buy-to-let investors who avoid overpriced properties. The rental market should benefit from continued population growth and tourism recovery.
Developer activity is predicted to slow further unless construction costs normalize and foreign investor sentiment rebounds significantly. This supply reduction could support prices in the medium term.
The consensus view suggests a "soft landing" for the Cyprus property market rather than a crash, with more realistic pricing and sustainable growth patterns emerging through 2025-2026.
It's something we develop in our Cyprus property pack.
Conclusion
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.
The Cyprus property market is experiencing a transition from rapid growth to moderation, with clear regional and segment variations that smart investors should understand.
While prices continue rising, the pace is slowing and risks are emerging, particularly in luxury coastal developments, making careful property selection more important than ever.
Sources
- Cyprus Property Cost Guide - IMIN Cyprus
- Record Property Sales in Cyprus 2023 - DOM
- Average House Prices in Cyprus - INVESTROPA
- Record Real Estate Transactions Cyprus - Investment Cyprus
- Cyprus Price Forecasts - INVESTROPA
- Property Prices Surge 2024 - Cyprus Property Buyers
- Property Prices Overview 2024 - Estate of Cyprus
- Real Estate Market Review 2024 - PwC Cyprus