Cyprus records €6.5bn in real-estate investment as Mediterranean market accelerates

If you believed that Portugal's golden visa or Turkey's coastline represented the only serious options for property investors, it may be time to reconsider your strategy. Cyprus has quietly emerged as one of the Mediterranean's most compelling markets.

In 2025, real-estate transaction volumes on the island reached a record €6.5bn—representing 8% year-on-year growth and 25,600 completed transactions. Foreign buyers accounted for 28% of all purchases, with their activity rising 16%. These are not opportunistic acquisitions; they represent a sustained capital inflow.

Who is investing? Russian-speaking investors (particularly in Limassol, in the luxury segment above €1.5m), Turkish nationals (hedging domestic inflation) and Israeli buyers (seeking secure second residences). Demand is concentrated in coastal zones: Limassol, Paphos and Larnaca.

Apartments lead the market—with transaction values up 60%. Why? They offer easier management, lower entry costs and strong potential for short-term rental income. Returns range from 4–7% over the long term, reaching 10% for tourist-oriented properties. Developers are raising quality standards: building permit costs have risen 28%.

Cyprus is more than an island. It is an EU member state with a favourable tax regime and a geographic nexus between Europe and the Middle East. The market is poised for continued expansion.

Source: Cyprus Mail Property