Thanks to its sunny, warm climate and favorable tax regime, many foreign citizens are interested in purchasing property in Cyprus. They acquire property in Cyprus for permanent residence or as a vacation home where they can always escape to enjoy the sun. With property purchase and rental prices constantly rising, buying property in Cyprus is considered a good investment.
During the first half of 2021, there were 7,914 registered transactions—20% more than in the same period in 2020. Limassol led the way, with a third of all transactions in the country taking place there.
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Property Prices in Limassol
The cost per square meter of property in Limassol is the highest compared to other cities in Cyprus. Authorities recorded a 3% increase in property prices in Limassol in the first quarter of 2021. The steady rise in property prices in Limassol is due to the high demand for property in this city. This demand is driven by the growing interest in buying property for short-term rentals to tourists and the influx of foreigners working under contracts, as Limassol is home to the headquarters of major internet technology companies.
Currently, apartments on the beachfront in Limassol cost between €4,000 and €10,000 per square meter, while prices in central areas range from €2,000 to €4,000 per square meter. Private homes with sea views cost around €4,000 per square meter (including those in central areas).
Renting apartments near the sea costs from €13 per square meter per month, with similar prices for rentals in the city center. Renting commercial properties ranges from €20 to €30 per square meter per month.
Property Prices in Paphos
Property prices in Paphos are 30-50% lower than in Limassol. A studio apartment in Paphos can cost around €50,000, though such options are rare. Average prices for studio apartments in Paphos range from €65,000 to €85,000.
A townhouse with two or three bedrooms in Paphos can range from €90,000 to €120,000, often with a shared pool on the premises.
The cost of a villa in Paphos with two floors and a plot of several hundred square meters starts at €250,000.
Property Prices in Larnaca
Property prices in Larnaca are very similar to those in Paphos. For example, for €90,000, you can purchase an apartment of 50-70 square meters. Larnaca attracts buyers with its moderate property prices, proximity to the international airport, and quiet atmosphere.
Property Prices in Nicosia
Despite not being located on the Mediterranean coast, property prices per square meter in Nicosia are slightly lower than in Limassol. The high demand for property in Nicosia is due to several factors. Firstly, it is the capital of Cyprus, with many international and local companies leading to a constant increase in job opportunities and thus demand for property. Secondly, Nicosia is a very progressive city with well-developed infrastructure, numerous malls, and shopping centers, a flow of tourists, and many cafes, restaurants, and cultural venues. Construction in Nicosia is happening rapidly, with modern high-rise buildings, luxury hotels, and large-scale entertainment and shopping centers being built. The cost of modern, spacious apartments of 150 square meters in Nicosia is around €300,000.
Property Price Forecasts in Cyprus
Property prices have doubled over the last 10 years, and prices are expected to continue rising, especially now that the cost of building materials and land plots is increasing due to the pandemic.
Investors from around the world are investing in the Cypriot economy. Cyprus is very attractive to international companies, with the lowest corporate tax rate in the EU at 12.5%. The Cypriot government encourages capital inflows by offering favorable citizenship and residency programs. New international developers are constantly entering the Cypriot property market, stimulating job creation and housing demand. The flow of tourists continues to grow, with modern hotels and resort complexes being built. Near Limassol, the government is constructing the largest casino in Europe, further boosting the region’s infrastructure. Cypriot authorities expect property prices to increase by 5-7% annually and are committed to improving the quality of life on the island by developing infrastructure.
Property Prices in Cyprus in 2022
After the 2020-2021 pandemic, property prices increased worldwide due to rising construction material costs. Additionally, the increased demand for property among arrivals from Russia, Ukraine, and Belarus since March 2022 also contributed to higher property prices. There are no signs that property prices in Cyprus will decrease. It remains advantageous to invest in new property at the early stages of construction, ensuring a profit. Investing in property in Cyprus is a profitable way to protect money from inflation.
Property Prices in Cyprus in 2023
Property prices in Cyprus continued to rise in 2023, with high demand for Cypriot property, especially among the growing Russian-speaking population. The government’s program to obtain permanent residency by purchasing property worth €300,000 or more remained popular. The market for completed new or resale properties significantly dwindled after 2022, with the Cypriot property market predominantly offering off-plan projects or newly built properties to be completed in 2024.
Property Prices in Cyprus in 2024
Property prices in Cyprus in 2024 indicate that the market continues to grow. Key aspects include:
- Housing Prices: Prices for apartments and houses in 2024 remain stable or slightly increase in some cities. For example, in Limassol, apartment and house prices range from €4,000 to €5,500 per square meter, similar to 2023. In Larnaca, prices rise from €2,500-3,500 to €3,500-4,000 per square meter, while in Paphos, they increase from €2,000-3,000 to €2,500-3,500 per square meter.
- Investment Opportunities: The Cypriot property market offers various investment opportunities, including purchasing rental properties, commercial properties, and off-plan projects for future sale. Limassol, as the economic center of Cyprus, concentrates business, infrastructure, and jobs, creating demand for residential and commercial property.
- Government Regulation and Policy: It is important to consider changes in government policy and regulation, such as the launch of a fast-track citizenship program for highly qualified professionals. The popular permanent residency program through property purchase continues, encouraging foreign investment in Cypriot property.
Forecast for 2025
Experts expect property prices in Cyprus to continue rising in 2025 due to several key factors:
- Foreign Investment: Cyprus remains attractive to foreign investors due to its stable economy, favorable climate, and high living standards. The demand for property from foreign buyers is expected to keep prices high.
- Construction and Infrastructure: Active construction of new residential and commercial properties continues in regions like Larnaca and Paphos, creating additional investment opportunities and contributing to property price growth.
- Rental Market: Rental prices also show steady growth. In 2023, apartment rents increased by 18.99% and house rents by 14.46%, making property investment for rental purposes a profitable option for investors.
Considering current trends and forecasts, the Cypriot property market in 2025 promises to remain dynamic and promising. Investing in residential and commercial property in popular regions such as Limassol, Larnaca, and Paphos is likely to yield significant returns due to continued price growth and high demand from foreign buyers and tenants.
