Cyprus remains a top Mediterranean real estate hotspot in 2025, offering strong investment potential, diverse property options, and a stable, supportive market.
Cyprus continues to stand out as a leading Mediterranean real estate destination, backed by a stable economy, investor-friendly policies, and high quality of life. From luxury coastal homes to affordable city apartments, the island appeals to both domestic and international buyers. With consistent performance and ongoing government support, the market remains resilient in 2025.
Market Trends and Performance
The property market grew by 1.5% in 2024. Urban rentals continue to perform well, with yields above 10% in high-demand areas. Coastal holiday homes in Limassol, Paphos, and Larnaca are popular for short-term rentals, offering seasonal returns of 6–7%. Cities like Nicosia also see strong demand for long-term rentals from students, professionals, and expats. Ongoing infrastructure and redevelopment projects add to long-term value.
Top Investment Areas
- Limassol:
High-end property demand remains strong, especially in Zakaki, home to projects like City of Dreams Mediterranean and Limassol Greens. - Larnaca & Famagusta:
These regions offer growing value and development potential, with more affordable entry points. - Nicosia:
As the capital, it provides steady rental demand and long-term investment stability.
Residency and Legal Advantages
Cyprus continues to attract non-EU investors through its Permanent Residency by Investment scheme, requiring a €300,000 minimum property purchase. The legal system, based on British common law, ensures clear and secure transactions. Additional incentives include reduced VAT on eligible new builds and attractive capital gains tax terms.
Smart Investing: Be Informed
While outlooks remain positive, investors should be aware of challenges. In areas like Larnaca, older properties may lack title deeds. In high-demand zones such as Limassol, rising prices require careful assessment. As always, expert advice and due diligence are key to making sound investments.
Eurofast’s TakeCyprus 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.
For further queries, please, contact us at [email protected]
Maria Mestana
Supervisor of Coordination Division
