Information

ADVANTAGES, SALES, AND GROWTH
Real estate investments on the island are becoming increasingly attractive, with advantages that are hard to ignore. The low transfer taxes and the complete abolition of the annual property tax since 2017, combined with tax exemptions for first-time home-buyers, provide significant incentives for buyers. Additionally, the lowest corporate tax rate in the EU (12.5%) is drawing more and more businesses to choose Cyprus.
At the same time, the high returns offered by the market are a strong draw for investors. The demand for apartments, luxury homes, offices, and commercial properties is steadily increasing each year, with industry experts reporting annual returns of around +5%. Additionally, as a top tourist destination, Cyprus is experiencing growing demand for tourist accommodations and vacation homes, especially in coastal areas. The summer season, lasts beyond the six-month period from May to October, and make it appealing for some to relocate or buy their place in the sun. 
Of course, the investment migration programme also serves as a key driver of growth, as the island offers to non-European investors the opportunity to obtain a residency permit for themselves and family, remains a strong incentive for foreign investors, enabling them to secure easier access to the European Union.

It has the advantage of being situated at a key crossroads between Europe, Asia, and Africa, making it an ideal destination for international investors.
Over the years Cyprus, handling economic crisis has proven its resilience even in unpredictable circumstances. Notably, in 2023, a record was set in real estate transactions, with a total value of approximately €5.6 billion, a significant portion of which involved new constructions. By comparison, the value was €5.2 billion in 2022 and €4.1 billion in 2021 - an increase of over 30% in just three years! 

CITIES, PRICES AND DEMAND

Larnaka has recorded impressive growth over the past three years, with an approximate 30% increase in transaction value in 2023. This development is centred around new infrastructure projects, boutique and coastal hotels, residential buildings and holiday retreats.It is centrally situated allowing easy access to all island’s cities and it has the International Airport of the island. 
Meanwhile, prices in residential and commercial properties have shown notable increases, as many are turning to more affordable options compared to the luxury markets of Limassol and Pafos.

Limassol remains the most dynamic real estate market, primarily due to its appeal to foreign investors.
Major projects, such as luxury residences and skyscrapers for businesses, continue to dominate the landscape. The city has evolved into a magnet for investors seeking high returns, with interest focused on luxury properties and long-term rentals. The increasing demand for real estate in coastal areas has significantly contributed to the ongoing rise in prices.

Pafos has established itself internationally for foreign investments, with a focus on luxury properties for tourism and permanent residence.
Thanks to its natural beauty and a thriving tourism sector, it is particularly popular among investors from the United Kingdom and Russia. The real estate sector also includes significant investments in hotel units, mainly in coastal areas. As indicated by recent transactions, approximately 80% of buyers are foreigners.

Finally, Nicosia, as the capital, offers stable opportunities in real estate, focusing on commercial and business investments. Although the demand for residential properties is not as strong as in Limassol, Nicosia remains a significant hub for businesses. Investors are primarily focused on developing office spaces and commercial centres, thereby boosting growth in the construction industry. It is worth noting that the real estate market and the construction sector contribute approximately 17% to Cyprus' GDP.

As for prices? Despite the increase, they remain attractive for buyers. Naturally, they vary depending on the area, the type of property, and demand. According to the data, there are investment opportunities in houses that are 15 to 20 years old in Nicosia and Larnaka, with an average price of around €2,000 per square metre.
Newly built properties in the same cities range from €2,500 to €3,000 per square metre. In Limassol, prices for luxury residences with high-end amenities reach between €5,000 and €10,000 per square metre, with ultra-luxurious apartments in new skyscrapers at the top of the market. In contrast, villas in Pafos are more affordable. Regarding commercial properties, prices in Limassol range from €3,000 to €5,000 per square metre, primarily in areas with high business activity, such as the port. In Nicosia, prices for commercial buildings and offices range from €2,000 to €3,000 per square metre, with the highest amounts concerning business centres.