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Buying Property in Cyprus: What You Need to Know in the Next 6 Months (17 December 2025)

Buying Property in Cyprus: What You Need to Know in the Next 6 Months (17 December 2025)

Summary

The Cyprus property market is entering a decisive period. Regulatory changes, shifting demand dynamics, and evolving buyer expectations mean that the decisions made today can have a meaningful impact on both cost and long-term value.

Below, I address the most common questions we receive from buyers and investors considering property in Cyprus.

Q1: Why are the next 6 months so important for property buyers in Cyprus?

The next six months are critical primarily due to upcoming changes to VAT legislation on new residential properties.

Cyprus is currently operating under a transitional VAT framework, where two systems run in parallel:

  • the existing rules allowing the 5% reduced VAT for first-time buyers, and
  • the new VAT framework, which introduces stricter eligibility criteria.

This transitional period will end in June 2026. After that point, the existing 5% reduced VAT system will cease to apply, and new, tighter caps and conditions will be enforced.

For buyers planning to purchase a primary residence, this has real financial implications. Eligibility will depend on stricter size limits, usage conditions, and timelines. In simple terms, buyers who qualify today may not qualify tomorrow.

C&A Toumazis currently offers 2- and 3-bedroom apartments where the 5% reduced VAT applies for first-time buyers, but timing is critical. Buyers who are considering a purchase should act decisively to secure eligibility under the current framework.

Q2: Should I buy off-plan, under construction, or a ready property?

Each option has its merits, but buying off-plan or during construction offers several strategic advantages.

Firstly, it allows greater flexibility. We offer personalisation options at this stage and buyers can:

  • Adjust internal layouts
  • Personalise finishes and materials
  • Upgrade specifications beyond the standard offering

Secondly, pricing is typically more attractive at earlier construction stages. Developers tend to offer more competitive pricing before a project is completed, reflecting both construction risk and early commitment.

Finally, off-plan/during construction purchases allow buyers to shape the home around their lifestyle, rather than adapting to a finished product. For many end-users, this flexibility is just as valuable as the price advantage.

Ready properties, on the other hand, offer immediacy and certainty, but usually come at a premium and with limited scope for customisation.

Q3: What is the current demand and supply situation in Limassol and Cyprus overall?

Demand remains exceptionally strong, particularly in Limassol.

While supply has begun to increase to meet demand, it has not fully caught up, especially in prime locations, like Yermasoyeia, and quality developments. We continue to see significant international interest, driven by:

  • Relocation to Cyprus
  • Buy-to-rent strategies
  • Lifestyle-driven purchases

From a macroeconomic perspective, Cyprus has benefited from low and stable inflation, hovering around 0.2%–0.3% annually in late 2025, well below the Eurozone average. This stability has reinforced investor confidence.

At the same time, foreign direct investment (FDI) has been flowing steadily into the country, with Limassol attracting a large share. This influx has naturally placed upward pressure on property prices.

Importantly, buyer expectations have also evolved. Today’s buyers demand more:

  • Better amenities
  • Higher-quality materials
  • Larger, more functional layouts
  • Energy efficiency and smart-home features

Developments that fail to meet these expectations struggle to compete

Q4: Why is due diligence so important before deciding what to buy?

Due diligence is one of the most underestimated, but most critical step in any property purchase.

Buyers should look well beyond the headline price and carefully assess:

  • Price per square meter (€ / sqm) (for both covered vs uncovered areas)
  • Quality of specifications and materials
  • Energy efficiency standards
  • The track record and experience of the developer and contractor

Two properties may appear similar on paper, yet differ substantially in real value and long-term performance.

Execution quality during construction matters enormously. Poor detailing, inadequate materials, or shortcuts taken on-site can lead to significant costs and maintenance issues just a few years down the line.

A strong developer with a proven history of delivery, compliance, and after-sales support is often the difference between a successful purchase and a costly mistake.

Final Thoughts

The Cyprus property market continues to offer compelling opportunities, but timing, structure, and due diligence are more important than ever.

VAT changes, strong demand, and rising expectations mean that informed buyers who act early and choose carefully are best positioned to secure both financial and lifestyle value.

As always, the right advice and the right partners make all the difference.