Cyprus property sales get off to a flying start

The Cyprus property market has got off to a flying start in 2025, as property sales contracts deposited at Land Registry offices surged by 21% in January compared to the same period in 2024, according to official figures from the Department of Lands & Surveys.

All districts have experienced growth, with Famagusta leading the way with a remarkable 40% increase in sales. Limassol followed closely, recording a 36% rise. Larnaca also saw a strong 20% growth, while Nicosia registered a 13% increase. Paphos, though experiencing the smallest rise, still recorded a 5% rise in the number of contracts deposited.

This surge in property sales reflects growing investor confidence and sustained demand for real estate across Cyprus. The robust start to the year suggests positive market dynamics, driven by factors such as economic stability, foreign investment, and local demand.

Limassol, known as a business and financial hub, continues to attract buyers, while Famagusta’s rise indicates renewed interest in its coastal properties. Larnaca’s ongoing infrastructure developments may have contributed to its growth, and Nicosia remains a stable market due to its role as the capital.

The positive trend in property transactions indicates a thriving real estate sector, setting an optimistic tone for 2025. If this momentum continues, Cyprus could experience another strong year in property sales, reinforcing its position as an attractive destination for both local and international buyers.

However, MPs have raised concerns that the number of foreign buyers has resulted in rising property prices, which impact local buyers, particularly young couples looking for homes.

While EU countries generally permit foreign property ownership, many impose restrictions.

For example, Finland is considering stricter regulations for national security reasons, Greece requires special permits for purchases in border areas, and the UK maintains safeguards relating to taxation and anti-money laundering measures. Also, Spain is considering new measures to tackle its housing crisis, including a sharp increase in property taxes for non-EU citizens. This could double the tax on properties bought by people from outside the EU.

Market Segment Analysis

Property Sales to the Domestic (Cypriot) Market

In January 2025, property sales to the domestic (Cypriot) market increased by 27% compared to January 2024, accounting for 60% of total sales for the month.

Sales saw significant growth across all districts:

Limassol: +50%

Larnaca: +22%

Nicosia: +18%

Famagusta: +10%

Paphos: +8%

Property Sales to the Overseas Market

Total property sales to the overseas market, including both EU and non-EU buyers, rose by 12% in January 2025 compared to January 2024. Sales increased across all districts except for Nicosia, where they declined by 10%.

District sales growth:

Famagusta: +74%

Larnaca: +18%

Limassol: +16%

Paphos: +5%

Property Sales to EU Citizens

Sales to EU nationals surged by 44% year-on-year, making up 13% of total transactions for the month. Sales increased in all districts except Larnaca, where they fell by 15%. Notably:

Famagusta: Sales skyrocketed by 533%, from just 3 transactions in January 2024 to 19 in January 2025.

Paphos: +81%

Nicosia: +21%

Limassol: +13%

Property Sales to Non-EU Citizens

Sales to non-EU buyers saw a modest 1% increase compared to January 2024 but still accounted for 27% of total sales.

Despite falls in:

Nicosia -27%

Paphos -15%

Famagusta -14%

These falls were offset by gains in:

Larnaca +27%

Limassol +17%

Overseas Market Preferences in 2025

An analysis of January 2025 property sales highlights that foreign buyers continue to dominate the Paphos market, where non-Cypriot buyers accounted for nearly 75% of total property transactions in the district.