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Everything you need to know before buying real estate is included in our Cyprus Property Pack
What do the latest numbers reveal about Cyprus’s real estate market? Are property prices on the rise, or are they stabilizing? Which cities offer the highest rental yields, and how does foreign investment influence these trends?
We’re constantly asked these questions because we’re deeply involved in this market. Through our work with developers, real estate agents, and clients who invest in Cyprus, we’ve gained firsthand insights into these trends. Instead of answering these queries one-on-one, we’ve written this article to share key data and statistics with everyone interested.
Our goal is to provide you with clear, reliable numbers that help you make informed decisions. If you think we’ve overlooked something important, feel free to reach out. Your feedback helps us create even more useful content for the community.
How this content was created 🔎📝
Fact-checked and reviewed by our local expert
Laurence Rapp 🇬🇧
Sales representative at Spot Blue - International Real Estate Agency
1) Nicosia's average property price is expected to rise by about 15% by the end of 2025
The average property price in Nicosia is expected to increase by around 15% by the end of 2025.
In recent years, the real estate market in Cyprus, particularly in Nicosia, has seen significant growth driven by both local and international buyers. This surge in interest has been fueled by the city's appeal as a vibrant urban center, attracting those looking for both residential and investment opportunities.
One of the main reasons for the price hike is the high demand for properties in urban centers like Nicosia, coupled with a limited supply. The scarcity of available properties has been exacerbated by delays in obtaining construction permits, a result of bureaucratic hurdles that have slowed down new developments.
Moreover, the broader market conditions in Cyprus have shifted towards luxury developments and sustainable housing projects. This focus on high-end and eco-friendly living spaces has further contributed to the rising property values, making Nicosia an attractive option for discerning buyers.
These factors collectively suggest that property prices in Nicosia are likely to continue their upward trajectory. The combination of demand, limited supply, and a focus on luxury and sustainability is setting the stage for this anticipated increase.
As we look towards the future, it's clear that Nicosia's real estate market is poised for growth, with the 15% increase in property prices by 2025 being a realistic expectation. For potential buyers, this presents both an opportunity and a challenge in navigating a competitive market.
Sources: MySpace Cyprus, CyRentBuy, Grekodom
2) Limassol's luxury apartment market is expected to grow by about 25% in value over the next two years
In Limassol, the luxury apartment market is set to grow by approximately 25% in value over the next two years.
High-net-worth individuals, both local and international, are flocking to Limassol, drawn by the city's booming economic growth and diverse real estate options. This surge in demand is a key driver behind the rising property values.
With a limited supply of luxury units in prime locations like the waterfront and central city areas, competition among buyers has intensified, naturally pushing prices upward. The scarcity of these exclusive properties makes them even more desirable.
Urban development is reshaping Limassol's skyline, with new high-rise buildings and residential complexes enhancing the city's appeal. This construction boom is a significant factor in the increasing property values, attracting more investors.
The Cyprus Investment Program, offering citizenship in exchange for real estate investments, has further fueled the market. This initiative has brought in a diverse group of international investors, adding to the demand for luxury apartments.
As Limassol continues to evolve, the luxury apartment market remains a hotbed of activity, with property values on a steady rise. The city's blend of economic growth, limited supply, and strategic investments makes it a prime destination for real estate enthusiasts.
Sources: The Luxury Playbook, Fox Realty
We have made this infographic to give you a quick and clear snapshot of the property market in Cyprus. It highlights key facts like rental prices, yields, and property costs both in city centers and outside, so you can easily compare opportunities. We’ve done some research and also included useful insights about the country’s economy, like GDP, population, and interest rates, to help you understand the bigger picture.
3) New residential construction projects in Cyprus are expected to grow by 10% annually until 2025
The number of new residential construction projects in Cyprus is predicted to grow by 10% annually until 2025.
In 2023, the construction industry in Cyprus made a strong comeback, with construction output rising by 7.4% year-on-year in the second quarter. This rebound sets a solid foundation for future growth, as noted by the Central Bank of Cyprus, which reported an increase in construction activity.
There's a high demand for property rentals, especially in bustling areas like Limassol, and a growing interest in sustainable and energy-efficient homes. These trends are driving the need for more residential projects.
The real estate market is on an upward trend, with property prices projected to rise by 30% over the coming years. This supports the prediction of increased construction activity, making it a promising time for new developments.
These factors create a favorable environment for the growth of new residential construction projects in Cyprus. The combination of rising demand and increasing property values is a strong indicator of future expansion.
Sources: Central Bank of Cyprus, Munk Real Estate
4) Short-term rental properties in Cyprus are expected to grow by 20% by 2025
The number of residential properties available for short-term rental in Cyprus is expected to grow by 20% by 2025.
Tourism is a major driver of this trend. As more tourists flock to Cyprus, the demand for short-term rentals has surged. This is especially true in hotspots like Nicosia, Limassol, and Paphos, where property owners are increasingly listing their homes on platforms like Airbnb.
The real estate market in Cyprus is also on the rise, with property prices expected to jump by 30% in the coming years. This growth is largely due to foreign investors, particularly from the UK, who are attracted by Cyprus's favorable economic climate and tax benefits.
Investments in tourism and infrastructure are further boosting the market. These developments make Cyprus an appealing destination for both tourists and investors, contributing to the increase in short-term rental properties.
Homeowners in popular tourist areas are capitalizing on this trend, turning their properties into lucrative vacation rentals. This shift is reshaping the real estate landscape, making short-term rentals a significant part of the market.
With these factors in play, the short-term rental market in Cyprus is poised for substantial growth, offering opportunities for both property owners and investors.
Sources: Property Investor Today, Munk Real
5) Property maintenance costs in Cyprus are expected to rise by 8% by 2025
In Cyprus, property maintenance costs have been steadily rising over the past few years.
By September 2024, the cost of regular housing maintenance had jumped by 5.7% compared to the previous year. Over a span of four years, these costs surged by 44.9%, reflecting a significant upward trend. This increase is not just limited to general maintenance; specific services have also seen notable hikes.
For instance, the cost of hiring electricians rose by 7.2% in September 2024, while plumbing services saw a 2.5% increase in the same month. Over the last four years, electrical services have grown by 51%, and plumbing services by 28.0%. These figures highlight the growing expenses homeowners face in maintaining their properties.
Adding to the financial pressure, the real estate market in Cyprus is experiencing a consistent rise in property prices. This trend is driven by high demand and limited supply, which is expected to continue into 2025. As property prices climb, maintenance costs are likely to follow suit, making it crucial for potential buyers to consider these factors.
Sources: Dom Cyprus, Imin Cyprus, Grekodom
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6) Residential properties in Cyprus with home security systems are expected to grow by 30% by 2025
The number of residential properties in Cyprus with home security systems is expected to grow by 30% by 2025.
Cyprus is seeing a boom in its security market, driven by a shift in customer preferences towards advanced security solutions and a growing need to guard against cyber threats. Its strategic location as an international business hub further fuels this trend.
The Security System Services industry in Cyprus is thriving, with a compound annual growth rate of 22.9% from 2019 to 2024. This surge suggests a rising demand for security solutions, likely impacting residential properties too.
Cyprus's cybersecurity job market is expanding, focusing on AI-powered security and zero-trust architectures. This broader emphasis on security could influence the adoption of home security systems in residential areas.
As more people recognize the importance of safeguarding their homes, the demand for home security systems is expected to rise. This trend is supported by the increasing availability of smart home technologies that offer enhanced protection.
Sources: Statista, Nucamp, IBISWorld
7) By 2025, 50% of Cypriot properties are expected to have mortgage insurance
In 2023, mortgage insurance became a key requirement for many homebuyers in Cyprus.
This shift was largely due to regulations from credit organizations, which made insurance essential for securing mortgages with better interest rates. As the real estate market in Cyprus grew in 2024, driven by high demand and limited supply, more properties were bought with mortgages, naturally increasing the need for mortgage insurance.
The Cypriot banking sector's stability also played a significant role. With low non-performing loans and high liquidity coverage ratios, banks were well-positioned to support the growth of mortgage lending. This stability encouraged more people to take out mortgages, further boosting the demand for mortgage insurance.
By 2025, it's expected that 50% of Cypriot properties will have mortgage insurance, reflecting the ongoing trend of increased mortgage applications. This trend is supported by the strong performance of the banking sector and the continued growth of the real estate market.
As more people look to buy property in Cyprus, understanding the role of mortgage insurance becomes crucial. It not only helps secure better loan terms but also provides a safety net for both lenders and borrowers in a dynamic market.
Sources: Dom.com.cy, Grekodom, Economy-Finance
While this article provides thoughtful analysis and insights based on credible and carefully selected sources, it is not, and should never be considered, financial advice. We put significant effort into researching, aggregating, and analyzing data to present you with an informed perspective. However, every analysis reflects subjective choices, such as the selection of sources and methodologies, and no single piece can encompass the full complexity of the market. Always conduct your own research, seek professional advice, and make decisions based on your own judgment. Any financial risks or losses remain your responsibility. Finally, please note that we are not affiliated to any of the sources provided. Our analysis remains then 100% impartial.