Why I usually analyse the Cyprus property market only through foreign buyers

A small but important clarification — especially for anyone who looks at market statistics "as a whole".

When we talk about the Cyprus property market, we are in fact talking about two different markets that live by different rules.

The numbers for context

In 2025 there were 18,114 transactions in Cyprus in total. Of these:

• 7,255 — foreign buyers;
• 10,859 — local buyers.

So foreigners account for 40% of transactions by volume. But here is where it gets interesting.

Why the total transaction count is a poor guide for an investor

The local market and the foreign-buyer market are different universes.

What local buyers are typically about:

• a low average ticket;
• mostly the resale market;
• buying to live in, not to invest;
• high sensitivity to mortgage rates and incomes.

Foreign buyers:

• a higher ticket;
• predominantly the new-build market;
• investment logic (capital preservation, residency, income, liquidity);
• they are the ones who set new-build prices, developer activity and land-value dynamics.

That is why a rise or fall in local transactions tells an investor almost nothing about risks and opportunities.

Why my focus is Paphos, and foreign buyers only

Because I work:

• with new-build (buying directly from the developer);
• with investment properties;
• with exit strategies, liquidity and IRR.

And all of that is driven by the foreign capital market, not by local resale turnover.

When I analyse different regions of Cyprus, I look at:

• transactions by foreign buyers;
• the EU / non-EU split;
• the dynamics of that specific segment.

An important caveat

The local market is not going anywhere. It provides:

• baseline liquidity;
• stability in the resale segment;
• a cushion during corrections.

But price movement, new project launches and investment logic always come from foreign buyers.

My subjective conclusion

The Cyprus property market is not one market. It is a housing market and a capital market. And if you are an investor, the one you need to understand is the second.

That is exactly the one I analyse.