Cyprus Economy Surges

The Cyprus economy grew by 3.6% in Q2 2025, outperforming forecasts and many EU countries, according to FocusEconomics. What’s driving this growth?

• Record tourism: In 2024, 4 million visitors came to Cyprus, generating over €3.2 billion in revenue. Tourism boosts hotels, resorts, and local services, creating opportunities in the Cyprus property market.

• Strong services sector: From hospitality to IT and finance, the services sector in Cyprus remains a key contributor to economic growth.

• Rising domestic demand: Increased household consumption supports retail, construction, and local businesses, which positively impacts real estate development in Cyprus.

Employment and public finances:

• Historic low unemployment: Only 4.7% at the end of 2024, meaning more disposable income and stronger property market demand.

• Solid public finances: Budget surplus of 4.3% of GDP in 2024, with government debt projected to drop from 65% of GDP in 2024 to 58% in 2025.

These indicators reflect positive economic momentum in Cyprus, supporting steady activity in the Cyprus property market. Demand for real estate in Cyprus remains consistent, providing opportunities for investors and buyers considering property investment or residency options.

Sources: FocusEconomics; NuCamp; European Commission; IMF.