January 2026
Рынок недвижимости Республики Кипр: обзор, перспективы, возможности
House Price Index
The Cyprus real estate index recorded a significant surge in 2025, rising by 40 points in less than a year. This is a substantial increase, indicating a fundamental shift in market conditions.
Number of Real Estate Transactions
At the same time, the number of transactions increased only marginally, not even reaching the levels observed in 2021.
Issuance of Building Permits
At the same time, the pace of construction and the issuance of permits remained at previous levels.
Foreign Demand
It was foreign demand that triggered the sharp surge in the index, accounting for more than 60% of the total real estate transaction volume in 2025. Statistically, this figure also includes a portion of transactions initiated in late 2024 but settled in 2025.
Rental Yield
The highest rental yields combined with relatively low price per square meter are observed in Paphos and Famagusta, while Nicosia shows the lowest yields. The average rental yield across the island is approximately 5.1% per annum.
Market Potential and Outlook
Cyprus remains a relatively complex market for investment due to the low aggregation and liquidity of the secondary real estate market, as well as its specific tax framework. Restrictive measures introduced in 2022 toward citizens of certain countries also represent a negative signal, highlighting a less reliable investment environment for non-EU investors.
The sharp increase in the index is largely the result of a sudden influx of high-net-worth buyers from the United Kingdom and Israel. This drove the index upward significantly, but had a limited impact on the overall price level across the market.
From an investment perspective, Paphos and Limassol are the most attractive locations. Paphos still offers a significant supply of development land and favorable климатические условия, while Limassol features commercial real estate projects with strong investment potential.
Cyprus remains a relatively complex market for investment due to the low aggregation and liquidity of the secondary real estate market, as well as its specific tax framework. Restrictive measures introduced in 2022 toward citizens of certain countries also represent a negative signal, highlighting a less reliable investment environment for non-EU investors.
The sharp increase in the index is largely the result of a sudden influx of high-net-worth buyers from the United Kingdom and Israel. This drove the index upward significantly, but had a limited impact on the overall price level across the market.
From an investment perspective, Paphos and Limassol are the most attractive locations. Paphos still offers a significant supply of development land and favorable климатические условия, while Limassol features commercial real estate projects with strong investment potential.