Could the US-Israel war with Iran affect the Cyprus property market — and if so, how? Regional geopolitical upheaval has historically worked in Cyprus real estate’s favour, but whether that holds true this time, and what it means for prices, remains an open question. Three industry experts share their views with Phileleftheros: Andreas Christophorides, CEO of the Landbank Group; Pavlos Loizou, CEO of Ask Wire; and Leonidas Hadjinicolaou, head of research and negotiations at Danos International Property Consultants & Valuers.
What experience tells us
Christophorides said the property market was watching developments with composure. “We are not seeing any impact significant enough to inspire worry or panic,” he said, adding that reports circulating abroad about Cyprus bore little relation to reality on the ground.
Transactions were continuing normally despite the geopolitical pressure, he said. “A small dip in purchases has been observed in recent days, which is entirely natural, but we expect everything to return to normal soon. We saw a similar picture in 2022 with Russia’s invasion of Ukraine, and during the tensions in Lebanon.”
Past crises, he argued, pointed to resilience rather than fragility. “Last year, despite everything that was happening, interest in property purchases actually increased, with investors from Lebanon and Israel viewing Cyprus as a safe alternative,” he said. “The end of the war, which we all hope to see as soon as possible, will certainly be favourable for the continued upward trajectory of the property market and other important sectors of the Cypriot economy.”
On current conditions, Christophorides said buying interest remained focused on residential property — apartments and houses — for both owner-occupation and rental investment. “Increased demand from abroad, combined with limited supply, is keeping prices at their current levels,” he said. “I would not say prices are being squeezed — rather, they are being reinforced, as Cyprus matures as a quality investment destination.”
A market with a clear memory
Loizou said the Cyprus property market had by now developed a clear track record of how it responds to regional crises. “After the Beirut port explosion in 2020 we saw increased interest from Lebanese buyers, mainly for homes in Larnaca and Limassol,” he said. “In 2022, with the war in Ukraine, we saw a significant movement of companies and people to Cyprus, particularly Limassol, which pushed up both sales and rents. Similar momentum was recorded after the attacks on Israel in 2023.”
The data told its own story, he said. Foreign buyers already accounted for roughly four in ten property purchases across Cyprus, with the figure frequently exceeding 50% in Paphos and Larnaca. “Today we are seeing increased interest mainly from Israeli buyers and, to a lesser extent, from Lebanese buyers,” he said.
Most of these transactions were not luxury investments, Loizou said. “They involve mainly ready-made two- or three-bedroom apartments and family homes in areas with international schools, good infrastructure and air links,” he said. “For many buyers they function as a second base — a plan B residence close to their home country but within the European Union. That is why the greatest activity is in Larnaca, Limassol and selected developments in Paphos.”
In the short term, uncertainty tended to freeze the market as buyers waited for clarity, he said. But history suggested a different dynamic over the medium term. “If tensions in the region are prolonged, we tend to see the opposite effect — increased demand from individuals and families seeking stability, and possible relocation of companies to safer European jurisdictions,” he said. “In such scenarios Cyprus frequently functions as the natural choice, given its proximity, tax framework and quality of life.”
Loizou also pointed to a risk that was easy to overlook. Around 16,000 short-term rental properties were currently operating in Cyprus, hosting a significant share of the country’s visitors. “If geopolitical tensions persist and affect tourist flows or occupancy rates, this could impact the returns on these properties and, by extension, demand from investors buying for short-term letting,” he said.
Cyprus is the plan B
Hadjinicolaou said geopolitical developments in the Middle East appeared to be further reinforcing interest in Cyprus. “In periods of uncertainty, investors and families look for safe, stable destinations within the EU to diversify their investments and protect their assets,” he said. “For them, Cyprus is the plan B — close to home, but inside the European Union.”
According to Danos International Property Consultants & Valuers estimates, the onset of hostilities had produced a sharp jump in enquiries. “Since the start of the conflict, significant increases in interest from Israeli, Lebanese and Iranian buyers have been recorded, with some property platforms reporting demand up by as much as 300% compared with previous periods,” Hadjinicolaou said. “There is also interest from those who previously invested or settled in Dubai.” He noted, however, that some prospective buyers were ending up in the occupied territories.
Between 2015 and 2025, he said, thousands of title deeds had been issued to Iranian, Turkish and Russian buyers for properties in Famagusta and Trikomo. Ukrainian and Kazakh citizens had also acquired property in the occupied areas during the same period, particularly around Morfou and Kyrenia.
The duration of the war would ultimately shape its impact, Hadjinicolaou said. “The trend points to growing interest from foreigners in affected countries, alongside cancellations and delays in tourist arrivals and rising construction material costs — which will push property prices higher,” he said. “The uncertainty that prevails must concern the government and industry professionals alike. Appropriate representations must be made abroad to ensure accurate and timely information reaches potential investors.”
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