Cyprus Property in 2025: Stability Amidst European Uncertainty

The Cyprus property market, famous for its volatility, has shown surprising stability in recent years. After the raging storms of the 2013 financial crisis, when prices fell by 50%, and a sharp drop in foreign demand (from 11,000 transactions in 2007 to 1,000 in 2013), the island is recovering at a steady pace. 2024 has shown a moderate but steady increase in prices, with a decrease in the number of transactions with foreigners, but this decline was offset by the activity of the Cypriots themselves. What to expect from 2025?

The forecasts for next year are moderately optimistic, which in itself is news for the usually unpredictable Cyprus market. This is due to the general stability of the island's economy, which has demonstrated steady growth despite global turmoil.

Cyprus’ GDP continues to grow faster than the EU average (3.9% growth by Q3 2024 vs. 0.4% in the EU in 2023). Inflation, after peaking in 2020 (over 8%), is declining and is projected to be 2.1% by 2025, well below the European average.

This macroeconomic stability has a direct impact on the real estate market. Rising salaries and lower inflation are increasing the purchasing power of the population, stimulating demand for housing. Although foreign investment has declined slightly in 2024, the domestic market remains quite active, keeping property prices afloat. Expected wage growth and a projected decline in unemployment to 4.5% by 2026 will only reinforce this trend.

In 2025, we can expect a continuation of moderate growth in Cyprus property prices. Sharp jumps, as in previous years, are unlikely. The market remains attractive for investment due to its stable economy, favorable climate and EU membership.

However, it is important to remember that the market remains sensitive to global events and adjustments cannot be ruled out depending on the overall geopolitical situation.

Key factors affecting the Cyprus property market in 2025:

• Stable economic growth: Continued GDP growth and declining inflation create a favorable environment for investment.
• Domestic demand: Activity of Cypriot buyers compensates for the decline in foreign investment.
• Global factors: The geopolitical situation and the general economic environment may affect the market.
• Tourism: The thriving tourism industry in Cyprus has a positive impact on the economy and, consequently, on the property market.

In conclusion, the Cyprus property market in 2025 promises to be stable and moderately optimistic. Although no drastic changes are expected, potential buyers should closely monitor global events and the local economic situation before making decisions. Moderate price growth and a stable economy make Cyprus an attractive place for real estate investment, but a balanced approach and detailed market research are required.

Are you considering Cyprus as a permanent residence or as a profitable investment? Contact us and we will promptly select investment-attractive apartments in Cyprus for your budget: both for personal residence and for rent, and show specific calculations of their profitability!