Source: Cyprus Mail, September 26, 2025

Foreign buyers have long been a driving force in Cyprus’ real estate market, shaping demand, influencing pricing, and redefining the island’s property hotspots. According to data presented in parliament and reported by Cyprus Mail, Paphos has emerged as the clear leader in foreign property demand, attracting thousands of applications and accounting for nearly half of all non-EU buyer activity.

In our opinion, this trend highlights both the enduring appeal of Paphos as a lifestyle destination and the wider structural challenges Cyprus faces in balancing foreign investment with local affordability. Below, we break down what the numbers mean and how the market might evolve.

Paphos: The Undisputed Magnet for Foreign Buyers

Over the past five years, Paphos recorded 5,477 applications from third-country nationals seeking to purchase property. This places it well ahead of Limassol (4,316 applications) and Larnaca (3,479). By July 2025, more than 20,800 property transfers to non-EU buyers were registered in Paphos — a staggering figure that cements its status as the island’s top international hub.

Why Paphos? We believe the answer lies in its unique positioning. With a picturesque coastline, UNESCO World Heritage sites, golf resorts, and a slower pace of life, Paphos has become especially popular among retirees, second-home buyers, and long-term investors looking for both comfort and stability.

In our view, Paphos represents Cyprus’ most “lifestyle-driven” real estate market, combining natural beauty with a community already familiar to foreign nationals — particularly British buyers.

Comparing the Districts: Four Different Stories

Each Cypriot district tells a different story when it comes to foreign demand:

• Limassol: With over 17,100 property transfers to non-EU buyers, Limassol remains a close competitor. In our opinion, its appeal is driven by a strong urban profile: a bustling business hub, luxury towers, and a cosmopolitan feel. Russian nationals dominate this market, though diversification is underway.
• Larnaca: Once considered secondary, Larnaca is now a rising star. Lebanese buyers account for much of the foreign demand here, attracted by proximity, cultural familiarity, and improving infrastructure. We think Larnaca is set to grow further as it positions itself as a value-for-money alternative.
• Nicosia: The capital city remains largely business-oriented, with only 7.68% of property transactions involving non-EU buyers in 2024. Greek nationals lead here, highlighting a market tied more to professional activity than lifestyle appeal.
• Famagusta: While not in the spotlight, Famagusta still holds niche potential, particularly for regional buyers seeking coastal investment.

In our opinion, this diversity shows that Cyprus is not a “one-size-fits-all” market. Each district serves a different buyer profile, from retirees to investors to professionals.

The Market Share: How Much Do Foreign Buyers Matter?

Foreign buyers accounted for 27.35% of all property transactions in Cyprus in 2024, a figure that underscores their importance in the sector. Within this, Paphos led with 44.19% foreign ownership, followed by Larnaca at 33.85%, Limassol at 26.43%, and Nicosia at just 7.68%.

We believe this breakdown clearly demonstrates the divide between coastal markets and the inland capital. Lifestyle-driven demand dominates in Paphos and Larnaca, while business-centric activity keeps Nicosia less exposed to foreign influence.

For developers and agents, this data should serve as a guide: aligning marketing strategies with district-specific buyer profiles is critical to success.

Who Buys Where? Nationality Trends That Shape the Market

The Cyprus Mail report highlighted key nationality patterns across districts:

• Paphos: British nationals are by far the dominant buyers. In our opinion, this reflects long-standing ties between Cyprus and the UK, as well as Paphos’ reputation among retirees.
• Limassol: Russian-speaking nationals remain most active, even amidst shifting geopolitical realities.
• Larnaca: Lebanese and Israeli buyers play a significant role, reinforcing the city’s role as a regional hub.
• Nicosia: Greek-speaking buyers lead, consistent with its professional, academic, and business focus.

We think these trends show that cultural and historical links remain central to property demand, shaping not only where people buy but also how communities evolve.

Challenges: Bureaucracy and Affordability

While demand is strong, the system has its challenges. Interior Minister Constantinos Ioannou admitted that processing times for foreign property permits can stretch to two months, as each application is handled by a single officer per district.

In our opinion, this bureaucratic bottleneck risks frustrating both buyers and agents. Moreover, since foreigners can file transfer deeds before official permits are approved, regulatory oversight is limited — creating uncertainty for the market.

At the same time, the surge in foreign demand raises concerns about local affordability. We believe this is one of the most pressing issues for policymakers: ensuring that the benefits of foreign capital do not come at the expense of Cypriot households struggling to enter the property ladder.

What This Means for Agents, Developers, and MLS Platforms

For real estate professionals, the takeaway is clear: foreign buyers are not just an additional segment; they are a defining force in the market.

We believe MLS platforms like RealtyHub are uniquely positioned to streamline this cross-border activity. By offering transparency, data-driven insights, and a centralized property database, RealtyHub helps agents present properties effectively to diverse buyer groups — from British retirees to Lebanese investors.

In our opinion, the next stage of market growth will depend on how well the industry can balance lifestyle marketing with compliance efficiency, ensuring a smoother journey for foreign buyers while protecting local affordability.

Looking Ahead: The Balancing Act

The numbers from Paphos are impressive, but they also raise a broader question: how much foreign demand is too much?

We believe Cyprus faces a delicate balancing act. On one hand, international buyers bring capital, growth, and global visibility. On the other, unchecked demand could inflate prices beyond local reach, undermining long-term stability.

In our view, success will lie in:

• Improving bureaucratic efficiency to reassure buyers.
• Enhancing transparency in property listings through MLS tools.
• Implementing affordability measures for locals.
• Promoting district-specific strategies to diversify demand.

If these steps are taken, Cyprus can continue to attract global investors while ensuring its real estate market remains sustainable for the next generation.

Paphos’ dominance in foreign property demand is not just a regional success story — it is a reflection of Cyprus’ growing role as a global real estate destination. According to Cyprus Mail, the numbers show British, Russian, Lebanese, and Greek buyers shaping different corners of the island. In our opinion, this diversification is a strength, but it must be managed carefully.

For agents, developers, and policymakers, the lesson is clear: foreign demand is here to stay — the question is how to harness it responsibly. Platforms like RealtyHub are part of the solution, enabling better data, smarter marketing, and a more resilient property ecosystem for both locals and internationals alike.