Cyprus remains one of the Mediterranean's most appealing real estate destinations, thanks to its stable economy, investor-friendly policies, and high quality of life. Offering everything from luxury coastal homes to budget-friendly city apartments, the island attracts both domestic buyers and international investors. With a solid performance track record and ongoing government support for development, Cyprus presents a resilient and evolving real estate landscape in 2025.
Real Estate Market Trends in 2025
The Cypriot property market continued its upward trend in 2024, with a 1.5% increase in overall sales. Rental returns are particularly notable in urban centres, with apartments in high-demand areas offering yields exceeding 10% per year. Holiday homes—especially those with sea views in Limassol, Paphos, and Larnaca—remain popular for short-term rentals, offering seasonal returns of 6–7%.
Long-term rental demand in cities like Nicosia also remains strong, driven by students, professionals, and expatriates. Major infrastructure investments and urban redevelopment projects are further reinforcing the market's long-term potential.
Top Investment Locations in Cyprus
- Limassol
Limassol leads the way in high-end real estate, particularly in the Zakaki area, where large-scale developments such as the City of Dreams Mediterranean resort and Limassol Greens Golf residences are boosting both residential and commercial appeal.
- Larnaca & Famagusta
These coastal regions offer growing potential, combining competitive pricing with upcoming development projects. Investors seeking long-term capital appreciation are increasingly turning their attention here.
- Nicosia
As the administrative and economic heart of Cyprus, Nicosia offers steady demand for urban housing, making it ideal for long-term rental strategies.
Residency, Tax Efficiency & Legal Ease
Cyprus continues to attract non-EU investors through its Permanent Residency by Investment scheme,
which requires a minimum real estate investment of €300,000.
The island also benefits from a transparent legal framework rooted
in British common law, which supports secure and straightforward
transactions for foreign buyers.
Other incentives include:
- Reduced VAT for eligible new builds
- Attractive capital gains tax provisions
- High rental yields through short-term leasing platforms such as Airbnb
These features, combined with Cyprus's favourable tax regime, make the country a compelling option for lifestyle and income-driven investors.
Smart Investing: Risks to Consider
While the overall outlook remains positive, investors should approach the market with awareness. In areas like Larnaca and Famagusta, some older properties may lack clear title deeds. Meanwhile, increased demand in hotspots like Limassol has led to significant price appreciation, calling for careful investment evaluation.
As with any cross-border investment, working with experienced professionals and performing due diligence is essential to minimise risk.
Eurofast's Take
Cyprus presents a unique mix of lifestyle, security, and investment opportunity. At Eurofast, we support clients every step of the way in their real estate journey—from selecting suitable properties to handling legal and tax matters. Our end-to-end service includes:
- Property sourcing
- Legal and regulatory support
- Residency planning
- Tax optimisation across Cyprus, Greece, and Montenegro
Our goal is to ensure your investment is not only secure, but strategically aligned with your long-term goals.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
