Dubai buyers are turning to Cyprus real estate

A new Down Town Cyprus market report says overseas demand for Cyprus property rose sharply in the first half of 2026, with Dubai residents among the fastest-growing buyer groups. The findings point to Cyprus as a lower-cost European alternative with residency appeal, steady transaction growth and strong demand in Paphos.

Why it matters: - Cyprus is drawing more overseas buyers at a time when many investors are looking for alternatives to the UAE and other expensive markets. - The report frames Cyprus as a mix of affordability, long-term settlement potential and relative stability. - For Dubai residents, the market offers a European option with lower entry prices and a path beyond employment-linked residency.

What happened: - Down Town Cyprus published a Cyprus Property Market Report on Aug. 19, 2026. - The report said international buyer activity in Cyprus rose 16.9% in the first half of 2026. - Abdul Tareel, managing director of Downtown Real Estate, said Dubai residents have been one of the fastest-growing buyer groups in recent months. - The report found EU-buyer purchases rose 23.7% and non-EU transactions rose 10.8% in the first half of 2026. - Paphos led district growth, with contracts of sale up 19% year over year. - The report also said more information is available in the full report.

The details: - Cyprus residential property was priced at about €342 per square foot, according to the report. - That compares with about €455 per square foot in Dubai. - The report compared Cyprus with higher-priced European markets, including about €575 per square foot in Madrid, €750 in Lisbon, €1,100 in Paris and more than €1,500 in London. - Cyprus offers established pathways to permanent residency and the possibility of long-term settlement. - The island is a member of the European Union and the Eurozone. - Cyprus provides access to the euro currency and what the report describes as a stable regulatory environment. - Direct air links with the Gulf were also cited as part of Cyprus’ appeal. - The report said overseas demand helped support transaction values as the market became more balanced after several years of rapid growth.

Between the lines: - The report suggests Dubai buyers are not only chasing returns, but also looking for a backup base with more predictable residency options. - Broad-based demand from both EU and non-EU buyers reduces dependence on any single source market. - Paphos appears to be benefiting from a mature expatriate community and its coastal profile, which can make the district more attractive for second-home and retirement buyers. - The data points to a market that is still growing, but without the froth of a one-off surge.

What's next: - Down Town Cyprus expects demand to remain supported by overseas interest, available finance and strength in key districts such as Paphos. - Buyer interest from Dubai is likely to stay linked to price gaps, residency options and lifestyle demand. - The broader market will be watched for whether steady overseas inflows continue through the second half of 2026.

The bottom line: - Cyprus is positioning itself as a lower-cost, residency-friendly alternative for Dubai buyers seeking European real estate without the price tag of major Western markets.