Real estate market index
The Cypriot property index made an exceptional leap in 2025, rising by 40 points in less than a year. This is a very substantial figure, indicating a fundamental change in the situation on the property market.
Number of real estate transactions
At the same time, the number of transactions grew only marginally, failing even to reach 2021 levels.
Building permits issued
Meanwhile, the pace of construction and of permit issuance remained at its previous level.
Foreign demand
It was foreign demand that triggered the huge jump in the index, exceeding 60% of the total volume of property transactions in 2025. Statistically, this volume also captured part of the late-2024 transactions that were settled in 2025.
Rental yield
The highest rental yields combined with a low price per square metre are found in Paphos and Famagusta, and the lowest in Nicosia. The average rental yield on the island stands at 5.1% per annum.
Cyprus is a fairly difficult country to invest in, owing to the low aggregation of its secondary property market and to a specific tax model. The restrictive measures against citizens of a number of countries introduced in 2022 are also a negative signal, as they demonstrate an unreliable investment climate for investors who are not citizens of the European Union.
The significant jump in the index is the result of a sharp inflow of billionaire buyers from the United Kingdom and Israel, which drove the index up steeply but had little effect on the overall price level.
From an investment standpoint, the most attractive locations are Paphos and Limassol. Paphos still has ample land available for development and the best climatic conditions. Limassol offers commercial property projects with high investment potential.
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