Limassol and Larnaca Lead Cyprus’ Real Estate Market in Early 2025

The Cyprus real estate market continued its steady growth in February 2025, with the number of transactions increasing by 7% compared to the same period last year. Limassol and Larnaca emerged as the key drivers of this growth, showing impressive momentum.

Overall Sales Growth

According to data from the Department of Land Registry, a total of 1,371 real estate transactions were recorded in Cyprus in February 2025, compared to 1,284 in February 2024. In the period from January to February, total transactions increased by 13%, rising from 2,340 to 2,646.

Top Growth Regions: Limassol and Larnaca

Limassol, traditionally the most active real estate market in Cyprus, continued to show stable growth. In February 2025, 389 transactions were recorded, marking a 3% increase from the previous year (378). Overall, in the first two months of the year, the number of transactions in the region rose by 18%, from 693 to 818.

Larnaca experienced the most significant surge. In February, sales skyrocketed by 36%, from 247 to 335 transactions. Over the January-February period, Larnaca’s real estate market saw a 29% increase, reaching 594 transactions compared to 462 in the previous year.

Nicosia Maintains Stability

Nicosia demonstrated consistent growth, with transaction volume increasing by 13% both in February and over the first two months of 2025. A total of 315 transactions were recorded in February, bringing the January-February total to 591, up from 523 in 2024. The city continues to attract buyers, particularly in the commercial real estate sector.

Decline in Paphos and Famagusta

Unlike the booming markets of Limassol and Larnaca, Paphos and Famagusta faced a decline in demand.

In Paphos, February sales dropped by 10%, from 310 to 280 transactions. Over the first two months of 2025, the decline was more moderate, at 3%, with 535 transactions compared to 552 last year.

Famagusta recorded the sharpest decline among all regions, with February sales falling by 25%, from 69 to 52 transactions. However, the two-month total remained nearly unchanged at 108 transactions, aligning with the levels of 2024.

What Drives Cyprus’ Real Estate Market?

The surge in sales in Limassol and Larnaca can be attributed to several key factors:

• High Demand from Foreign Investors

Limassol and Larnaca have long been magnets for foreign investors who view Cyprus not only as a vacation destination but also as a promising investment hub. The demand remains strong for beachfront apartments and villas, as well as commercial properties such as office centers, hotels, and retail spaces, reinforcing the cities’ status as key business hubs.

• Active Development

The real estate market is also benefiting from the rapid development of new residential and commercial complexes. Limassol continues to expand with modern residential clusters that feature full infrastructure, attracting both homebuyers and tenants. Meanwhile, Larnaca is emerging as a new investment hotspot, offering competitive prices and high-potential projects.

• Infrastructure Expansion

Infrastructure improvements play a crucial role in sustaining demand. Both Limassol and Larnaca are seeing the development of new road networks and transportation hubs, enhancing connectivity. The construction of modern business centers and shopping complexes is drawing in new companies and investors, further stimulating economic activity in the region.

The Cyprus real estate market remains dynamic. While some regions are experiencing a slowdown, the overall trend remains positive. Limassol and Larnaca continue to attract investors, whereas Paphos and Famagusta may require a new catalyst for renewed growth.

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