Are you considering a real estate investment in Cyprus but find yourself brimming with questions? Before you take your first step into this promising market, it’s only natural to seek clarity on various concerns. Below are some of the most common queries, and we’ve got the answers for you.
Is it Safe to Buy Property in Cyprus?
Buying property in Cyprus is widely considered safe, and this can be attributed to several key factors, primarily:
– A Financially Stable Nation
Cyprus’s economy is one of the ten fastest-growing economies in the European Union, recording a growth rate of 2.3% in 2023, compared to the EU average of 0.7%. Indicators of this growth include:
- The inflation rate in Cyprus dropped from 8.4% in 2022 to 3.54% in 2023, reaching 1.5% in November 2024.
- Unemployment decreased significantly in 2023 to 5.96%, and stood at 4.1% in 2024. It is expected to decline even further in 2025.
– High Demand for Real Estate
Cyprus has witnessed a 21% increase in property sales compared to the same month last year. According to the latest study by the Department of Lands and Surveys, total sales in January reached 1,275 properties, an impressive jump from the 1,056 properties sold during the previous year.
– High Rental Yield in Real Estate
Investors can unlock strong returns in Cyprus, where short-term (vacation) rentals can yield around 9% and long-term leases can deliver an estimated 5% return on investment.
– High Capital Appreciation in Real Estate
Property values in Cyprus register a notable capital appreciation rate of about 5%. In select areas, appreciation can climb even higher, reaching around 7.8% in Larnaca.
– Major Infrastructure and Real Estate Developments
Cyprus is seeing significant investments in both infrastructure and property projects, driving strong demand and boosting long-term property values. In Larnaca specifically, the Land of Tomorrow project stands out as a prime example.
How much does an apartment in Cyprus cost?
Apartment prices in Cyprus vary depending on location, size, and features. Below are the average prices per square meter in its major cities, according to Properstar:
| City | Price per Square Meter (Apartments) | Price per Square Meter (Houses) |
| Limassol | 5,446 | 3,889 |
| Paphos | 3,839 | 3,863 |
| Larnaca | 2,969 | 2,402 |
| Nicosia | 2,752 | 2,033 |
| Famagusta | 2,723 | 3,480 |
Can non-residents buy property in Cyprus?
Foreign nationals can purchase property in Cyprus under certain conditions. Non-EU citizens, this includes foreign companies and companies owned or managed by foreigners under the law, must first obtain permission from the local District Administration if they wish to acquire immovable property in Cyprus.
How many properties can a foreigner own in Cyprus?
Foreigners can purchase up to two units, which may be at different stages of development. The units may be two dwellings or one dwelling and a shop measuring up to 100 square meters or one dwelling and an office measuring up to 250 square meters.
