The Cypriot property market experienced a significant surge in May 2025, recording its highest monthly sales total since 2007. A total of 1,664 property sales contracts were deposited at the Land Registry offices, marking a 30% increase compared to May 2024, which saw 1,268 transactions. This robust performance encompasses a diverse range of properties, including residential, commercial, industrial, agricultural real estate, and land.
Several key factors are contributing to this positive trend. A slowdown in property price increases, as highlighted by the Bank of Cyprus’s Q4 2024 report, is making property ownership more accessible. Additionally, faster processing times for planning and building permits are streamlining development and sales. A notable drop in housing loan interest rates, now averaging around 3.78%, is also making borrowing more affordable for prospective buyers.
District-level performance and year-to-date trends
All districts across Cyprus reported year-on-year sales growth in May 2025. Famagusta led the way with a 54% increase, followed by Paphos (44%), Larnaca (37%), Nicosia (26%), and Limassol (18%).
The positive momentum extends to year-to-date figures. From January to May 2025, a total of 7,185 properties were sold nationwide, representing a 15% rise compared to the 6,231 sales recorded in the same period of 2024. Limassol saw the highest volume of sales with 2,281, while Larnaca and Famagusta both experienced a 19% increase in sales.
Market Outlook and government initiative
While the overall outlook for the Cypriot property sector remains cautiously optimistic, the current trajectory suggests a strong second half of 2025. Increased investor interest, improved administrative efficiency, and favorable lending conditions are all contributing to this positive sentiment.
In a significant development, President Nikos Christodoulides announced an anticipated decline in both rental and property purchase prices in the coming years. This is largely attributed to a substantial increase in new housing developments, which are expected to bring greater balance to the market. The real estate and construction sector is a vital component of the Cypriot economy, contributing 15% to GDP and employing over 40,000 people.
Addressing “Trapped Buyers”
The Cypriot government is actively working to resolve the long-standing issue of “trapped buyers”—approximately 8,000 individuals who paid for their homes but were left without legal titles due to issues with developers. A new bill aimed at providing relief to these buyers is progressing towards a parliamentary vote. The proposed legislation, supported by the Interior Ministry and Parliament’s Legal Affairs Committee, seeks to allow trapped buyers, under specific conditions, to sell or refinance their properties and finally obtain legal title deeds. The bill also includes deadlines for issuing title deeds and crucial legal safeguards for these affected individuals.
The consistent growth in sales, coupled with government initiatives to address market imbalances and protect buyers, paints a promising picture for the Cypriot property market. However, the market remains susceptible to external factors such as interest rate fluctuations, geopolitical events, broader economic trends, and the behavior of foreign buyers.
