**Nicosia, Cyprus** - The Cypriot Parliament has commenced deliberations on a suite of proposed legislative measures aimed at significantly tightening regulations surrounding property acquisitions by non-Cypriot nationals. This move, driven by mounting concerns over national security and the potential for unregulated foreign investment in sensitive areas, signals a pivotal moment for the island's real estate landscape. Concurrently, the government is independently formulating its own bill, underscoring the urgency and breadth of the impending reforms.
The current legal framework governing foreign property ownership in Cyprus is widely acknowledged to be outdated, riddled with deficiencies that permit virtually unrestricted acquisition. This laxity has prompted parliamentarians, particularly within the House Interior Committee, to scrutinise existing legislation and explore more robust oversight mechanisms. The impetus for this legislative push is amplified by observations, articulated by Akel leader and MP Stefanos Stefanou, of a discernible trend towards foreign interest in real estate situated in strategically vital locations. "We observe the purchase of, or interest in, real estate near airports, army camps, the ceasefire line and the coastline," Stefanou remarked, highlighting the specific geographical zones that have become focal points of concern.
To provide a clearer picture of the current market dynamics, analysis by Landbank Analytics has meticulously mapped areas exhibiting high property sale prices and transaction volumes across Cyprus for the period spanning January to October 2025. This data reveals a nuanced market segmentation, with distinct geographical hotspots catering to different buyer demographics and investment scales. The Akamas area in Paphos emerges as the apex for luxury real estate, boasting the highest average sale price exceeding €646,000. This region, along with Paphos Municipality and Geroskipou, demonstrates substantial transaction values within the high-end segment, with Paphos Municipality alone recording sales of over €124 million and Geroskipou nearing €78 million, both with average prices surpassing €420,000.
In contrast, municipalities such as Larnaca and Nicosia are attracting a more mid-budget clientele, evidenced by their high transaction volumes. Larnaca Municipality led the nation with 927 transactions, while Nicosia Municipality followed with 624. The Limassol district, however, stands out for its sheer transaction value, with overall sales soaring past an impressive €737 million. Within Limassol, the Germasogeia district alone accounted for €351.5 million in sales, with an average price of €583,905, further solidifying the district's status as a prime investment destination. The Kourion area and Limassol Municipality also contributed significantly to this district's economic performance.
Conversely, Larnaca district offers more accessible options, with average prices generally ranging between €200,000 and €220,000. Larnaca Municipality's sales reached €207.2 million, and Aradippou, while ranking ninth nationwide, also represents a significant market. Nicosia district, with total sales approaching €207 million, exhibits a degree of domestic demand and market stability. Nicosia Municipality's sales amounted to €130 million, and Lakatameia offered the most competitive average price among leading areas at €195,000.
The government's forthcoming bill, anticipated by summer, aims to consolidate various legislative proposals and address the overarching national security implications of foreign property ownership. The intention is to have a unified legislative approach in place, with hopes of a parliamentary vote before the body dissolves for the upcoming May legislative elections. The comprehensive data from Landbank Analytics is expected to inform these crucial discussions, providing policymakers with an empirical understanding of the current real estate landscape and the extent of foreign holdings, thereby paving the way for a more regulated and secure future for Cyprus's property market.