PwC Cyprus has presented its annual report on the Cypriot real estate market, outlining the main developments and trends in the sector during 2025 through detailed analysis, extensive databases, and the firm’s sectoral expertise.
Key points from the report can be seen below:
Record-high transaction activity was recorded during 2025
The Cyprus real estate market exhibited noticeable growth during 2025, reaching record-high levels in both transaction volume and value. The total value of properties transacted during 2025 reached €6.5b, recording an 8% annual increase (2024: €6.0b), while the total number of transactions demonstrated a 4% growth reaching 25,600 during 2025 (2024: 24,700).
All districts demonstrated significant growth in terms of transaction value during 2025, with the exception of Limassol, which experienced only a marginal drop, while still dominating the market share (41% of total transaction value).
Residential real estate led the market
Residential properties remained the market driver, reaching €4.5b in transaction value terms (69% of the total). Notably, there was an increase in the value of apartment transactions, which constituted the main growth factor during 2025, accounting for c.60% of the overall increase in value terms.
Demand from foreign buyers
Demand from foreign buyers increased by 16% in 2025, indicating an acceleration in foreign transaction activity. The coastal districts of Paphos, Larnaca, and Limassol, together accounted for c.80% of the growth in properties acquired by foreigners during the year.
Luxury property market: steady presence
The luxury housing segment (properties valued above €1,5mln) remained relatively stable during 2025, with 203 transactions totaling €550m - representing 8% of the sector’s total value. Limassol continues to dominate the high-end residential property market; however, its contribution decreased from 76% in 2024 to 61% in 2025. Paphos experienced an increase in high-end residential property transactions during the year, representing 28% of the total luxury segment, compared to 18% in 2024.
Development trends and construction costs
From January to October 2025, the number of new building permits increased by 9%, while their total value increased by 28%, indicating a shift towards higher-quality, higher-value projects. Limassol and Nicosia remained leaders in terms of permitted project area. Significant growth was recorded in hotel and leisure developments, whereas retail and warehouse developments both declined during this period.
Commenting on the findings, Constantinos Constantinou, Partner and Real Estate Industry Leader of PwC Cyprus, noted, “The real estate sector faces an imperative to adapt and transform—placing greater emphasis on sustainability, quality infrastructure, and long-term value creation. In a rapidly changing environment marked by ongoing geopolitical developments, the impact of which on the sector remains uncertain, market participants must continue to reassess their priorities and align investment decisions with the country’s future needs.”
The PwC Cyprus Real Estate Market – Year in Review 2025 publication provides a detailed analysis of transaction activity, price trends and investment dynamics across Cyprus, offering valuable insights for investors, developers and policy makers navigating an evolving real estate landscape. It is important to note that the findings and analysis presented in this publication pertain to market activity during 2025, prior to the outbreak of the war in the Middle East.
To view the publication, click HERE.
