Foreign buyers accounted for 43.4% of property sales contracts in Cyprus in the first quarter of 2026, confirming that international demand has now become one of the key drivers shaping the country’s real estate market. This figure is based on official data from the Department of Lands and Surveys (DLS) of the Republic of Cyprus, which records transactions involving both EU and non-EU buyers.
This trend is not temporary. On the contrary, it reflects a deeper structural shift in the market. The share of foreign buyers stood at 35.7% in 2021, surged above 44% during 2022–2023, remained close to 40% in the following years and returned to an upward trajectory in 2026.
The rise of non-EU buyers
The most notable change concerns non-EU buyers. Their share increased from 17.9% of total transactions in 2021 to 31.7% in 2023, while in the first quarter of 2026 it stood at 29.1%.
This development is linked to a broader wave of capital, business and individual relocation to Cyprus, particularly after 2022. The war in Ukraine, geopolitical tensions in the Middle East, and the growing need for relocation among affluent households and businesses have boosted demand for property, especially in coastal areas of the island.
While British buyers remain a strong force in the market, the new wave of buyers is clearly more international. Russian, Israeli, Lebanese and Greek investors are now emerging as key players in the real estate market, while Chinese demand, which was particularly strong between 2020 and 2024, appears to be declining in more recent data.
Paphos: A market driven by foreign demand
The most characteristic case is Paphos. The district shows the highest dependence on foreign buyers across Cyprus. In the first quarter of 2026, foreigners accounted for 75.1% of property sales in the area, while in recent years their share has consistently exceeded 65%.
The region has traditionally attracted strong British demand, mainly from buyers seeking retirement or lifestyle properties. However, in recent years, there has also been a significant increase in Russian and Israeli investors, particularly in the luxury housing and beachfront segments.
This dynamic is already affecting property prices, absorption of new developments and the overall profile of the area.
Larnaca at the center of new demand
An even more striking shift is observed in Larnaca. The city is gradually emerging as a new investment hotspot in Cyprus, mainly due to the strong presence of Israeli and Lebanese buyers.
Contracts involving non-EU buyers in Larnaca increased from 468 in 2021 to 1,289 in 2025, while 357 transactions were recorded in the first quarter of 2026 alone. This reflects not only increased investment activity but also a broader market restructuring.
Larnaca is now considered more affordable compared to Limassol, while major redevelopment projects, waterfront upgrades and investments in tourism and infrastructure are acting as strong growth catalysts.
Limassol remains the premium market
Limassol continues to be Cyprus’ leading premium real estate market. The city attracts high-value international capital, primarily from Russian and Israeli investors, as well as Greek buyers.
The market is characterized by a strong presence of luxury developments, residential towers, high-end beachfront projects and corporate relocations. Despite a slight cooling after the 2023 peak, foreign demand remains particularly strong.
At the same time, the influx of foreign capital has contributed to rising property prices and rents, intensifying the debate over housing affordability for local households.
Nicosia remains a primarily domestic market
In contrast to coastal areas, Nicosia continues to rely mainly on domestic demand. Foreign buyers consistently account for a relatively low share, between 12% and 16% of total transactions.
The capital’s market is more closely tied to the local economy, employment and permanent housing needs. Foreign interest mainly comes from Greece, the United Kingdom and Australia.
Gaps in measuring real foreign exposure
Despite the large volume of data, several analysts and institutions believe that the real exposure of the Cypriot real estate market to foreign capital is significantly higher than official figures suggest.
The Audit Office of Cyprus has pointed out that statistics do not fully capture purchases made through Cypriot companies with foreign shareholders, nor complex ownership structures involving ultimate beneficial owners.
At the same time, weaknesses have been identified in monitoring the origin of funds, tracking how properties are used after purchase and mapping assignment contracts.
This suggests that the actual footprint of foreign investors in the Cypriot real estate market may be considerably higher than officially recorded.
