Adapting to New Realities in Cyprus and Greece Real Estate in 2025
Asking prices are holding firm — but real value is shifting beneath the surface.
Q1 2025 has confirmed that while real estate markets in Cyprus and Greece remain resilient, subtle but important changes are emerging that investors and developers must not ignore.
In Cyprus, over 4,100 property sale contracts were filed in Q1, with total deal values exceeding €1.1 billion, marking a 15% year-on-year increase. Foreign demand, especially in Paphos and Larnaca, continues to drive liquidity, but closing times are stretching slightly — an early signal that buyers are becoming more selective.
In Greece, housing prices rose ~7.6% year-on-year in Athens, with nationwide volumes remaining healthy. However, growth has moderated compared to the double-digit surges of 2022–2023. The slowdown in domestic demand, the winding down of subsidy programs, and a natural affordability ceiling are reshaping dynamics, especially in urban centers.
The widening gap between asking and achieved prices is the clearest indicator of change. In Athens, sellers are listing properties up to 25% above actual sale prices. Negotiations that once closed with a 5–7% discount are now seeing 10–15% adjustments. A similar pattern is emerging in Cyprus. Price realism is becoming critical to liquidity.
Emerging risks are sharpening this divide. Environmental factors — including stricter climate-related regulations and rising insurance costs — are starting to reprice assets, especially those in high-risk zones. In Greece, new restrictions on short-term rentals are reshaping yields, while regulatory changes (such as Golden Visa reforms) are pushing foreign buyers toward secondary cities.
The bottom line for investors and developers:
- Price competitively to ensure liquidity.
- Prioritize assets that are resilient to environmental and regulatory risks.
- Target segments where buyer demand remains strong, such as urban rentals and quality coastal developments.
- Factor in rising financing costs and slower exit timelines in project planning.
- 2025 is no longer about chasing momentum — it’s about precision, risk management, and forward planning.
At Ask Wire, we combine real-time data with actionable insights to help you navigate this changing landscape.
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Pavlos Loizou, CEO
E: pavlos.loizou@ask-wire.com
T: +357 22 222550
