Visit us at our offices to help gain an understanding of the global trends and devise a strategy that fits your needs.
Mar 31, 2025
Trump’s back, and the tariffs are too, 10% on all imports, up to 60% on Chinese goods. The global trade landscape is in flux, and while it’s not the end of the world, its tremors are sure to reach Cyprus’ real estate market. Foreign investment is cooling, construction costs are climbing, and the ripple effects are starting to show. But make no mistake, Cyprus can, and will, adapt.
Cyprus has long been a real estate favorite for investors, drawn by its sunny lifestyle, tax incentives, and business-friendly environment. Cyprus’s real estate market is like a diverse buffet of investors from Brits and Russians to Israelis and Greeks. When one group takes a step back, others step up to fill the gap.
The good news? If Trump’s tariffs end up weakening the euro, Cyprus’s properties could become even more affordable for buyers from outside the eurozone. It’s a little bump in the road, but Cyprus remains a solid investment option.
Cyprus has been riding a wave of property price growth, with house prices up 7.6% year-on-year by Q3 2023. But by 2024, that wave has slowed to a more manageable pace. Prices rose 6.5% in mid-2024, with apartments seeing slightly cooler growth at around 8.8%.
Why? A mix of higher interest rates, which make borrowing more expensive, and global uncertainty (you guessed it, Trump’s tariffs).
The silver lining is that local buyers are stepping up to keep things moving, filling the void left by a dip in foreign transactions. So, while prices are still on the rise, the pace has cooled. This is Cyprus: steady growth, no sudden drops.
Trump’s tariffs have bigger ripple effects than just impacting the real estate market. If the European economy takes a hit from the trade war, Cyprus could feel it in sectors like tourism and shipping, which are key to the island’s economy. That could trickle down to the property market, especially in commercial spaces and luxury real estate.
But here’s where Cyprus gets a bit cheeky. If the euro weakens due to tariffs, Cyprus might actually become an even more attractive place for foreign buyers. Imagine getting that beachfront property for a little less because the dollar is stronger. Cyprus could end up benefiting from what initially seemed like a disadvantage.
Cyprus isn't just sitting back, waiting for the storm to pass. The government is on it, with housing reforms and tax incentives to keep the real estate market steady. The "Build to Rent" program is one such initiative, aiming to increase affordable rental housing by offering developers more building density in exchange for renting at below-market rates.
They're also fast-tracking permits for new developments, cutting through red tape to get projects off the ground faster. And don't forget Cyprus's friendly tax policies - 12.5% corporate tax and VAT breaks on property - which continue to make the island an attractive place to invest. In short, while Trump's tariffs shake things up, Cyprus has its sleeves rolled up, ready to adapt.
So, what does all this mean for Cyprus’s real estate market for the foreseeable future? While Trump’s tariffs have added some uncertainty to the mix, Cyprus remains resilient. Foreign investment has slowed slightly, but it’s far from a crisis. Property prices are still rising, but at a more measured pace. Construction costs have cooled a bit, though builders are still keeping an eye on the global trade winds.
The real question is how long this global trade uncertainty will last. For now, Cyprus is navigating through the storm with a steady hand, taking advantage of its strengths and adapting to the changes. The real estate market is expected to continue its moderate growth, but it’s unlikely to see any major crashes. After all, Cyprus knows how to ride out a storm.
Staying in the know of the real estate market in Cyprus can be tricky, which is where the M.Residence team can help you make the most of it today, for your future. Visit us at our offices to help gain an understanding of the global trends and devise a strategy that fits your needs.
Until next time,
Nikolas Michalias
