Investing in Cyprus: Exploring the lucrative real estate market for travelers

Limassol

Every year, from 30% to 35% of all real estate transactions in Cyprus take place in Limassol.

Stable demand from highly paid employees of international corporations makes Limassol the most attractive region for investment in real estate. Often, purchasing real estate in Cyprus for Europeans begins in Limassol.

However, significant demand and relatively limited supply affect property prices in Limassol.

Despite being so popular among investors, Limassol is the most expensive city in Cyprus for residential property investment.

Property prices in Limassol

So, if the average price for real estate in Cyprus is 2,070 euros per square meter in the city center, then in Limassol, this cost reaches 3,900 – 5,000 euros per square meter.

Pathos

Paphos is a fantastic location to invest in property if you want a tourist area.

The city is known for its temperate warm climate, gorgeous beaches with turquoise water of the Mediterranean Sea, as well as orchards and beautiful mountain views.

Paphos is famous for its rich history and attractions, for example, the famous Baths and Cove of the Goddess Aphrodite.

Paphos also has a highly developed infrastructure:

• an international airport that receives flights from European countries;
• a large shopping center, Kings Avenue Mall;
• a zoo with more than 200 species of birds and other animals;
• a cactus garden;
• a water park and many hiking trails.

The city’s weather, infrastructure, and family-friendly nature are perfect for those looking for a safe place to move and live with their family in Cyprus.

About 20%-25% of property buy and sale commerce in Cyprus occurs in Paphos.

Property in Paphos is very diverse: you can buy modern apartments in gated complexes with a communal pool and parking spaces or a villa for the whole family with gorgeous sea views, a private pool, parking, and electric car charging.

Property prices in Paphos

The average price per square meter in the center of Paphos in 2022 is about 2,200 euros.

Larnaca

Larnaca is the third biggest city in Cyprus and is now one of the island’s most popular areas for holidays, living, and investment.

The major multinational airport in Cyprus and long sandy shores are in Larnaca. This cozy small town is perfect for relaxation, leisurely family or business life.

The city’s infrastructure is well-developed, the natural beauty of the region is undeniable; and therefore, tourism constitutes a significant part of Larnaca’s income.

Real estate professionals believe Larnaca is the most profitable and advantageous market in Cyprus.

Larnaca offers investors almost any type of property: from luxury flats in the city center 5 minutes from the famous palm-lined Phinikoudes beach to luxury villas on the city’s outskirts.

Both local and foreign investors saw a window of opportunity for investment in Larnaca property, which had a positive impact on demand in the future.

In 2022, the number of transactions reached a record level.

Also, the Larnaca port modernization scheme and important investments of 1.2 billion euros in the modification project of the surrounding region have had a favorable effect on the market in the region. The 510,000 square meter task will include retail space, extra flats and offices of key global companies, cafes, hotels, and other infrastructure.

Property prices in Larnaca

The highest growth in property costs in Cyprus in 2022 was registered in the Larnaca region. Thus, prices for 1 square meter in the city center increased from 1,800 euros in 2020 to 3,000 euros.

Nicosia

The capital of Cyprus, Nicosia, is located in the island’s center. Public sector offices, universities, and international organizations are concentrated in this city. Landlocked, this city is the least oriented towards tourism. Therefore, Nicosia is more popular for investment in commercial real estate.

Demand in the residential property market in Nicosia is mainly driven by public sector workers in Cyprus.

Specifically, in 2021-2022, the demand for property has gradually increased, and prices in the Nicosia property market are significantly inflated.

Thus, in 2022, the average price for 1 square meter in the center is 3,400 – 5,200 euros. Remember that the average cost of real estate in Cyprus is about 2,079 euros per sq. m.

Famagusta

After all, where are the most beautiful beaches in Cyprus? In Ayia Napa and Protaras!

These two cities in the Famagusta region are famous for their snow-white powdery sand and azure warm sea. This is the most tourist part of the island of Cyprus.

Buying property in Ayia Napa and Protaras is ideal if you are considering investing in residential property in Cyprus with the possibility of renting out to tourists during peak season.

Beach holidays, designed mainly for young tourists from Western Europe, have a distinct seasonality from May to October.

The demand for real estate in Famagusta is generated exclusively by the tourism sector, and prices are significantly lower than the average in Cyprus. Thus, a square meter in the center of Ayia Napa costs 1,700 to 1,900 euros.

It is still possible to buy property in Cyprus in the Famagusta area at prices below average on the island. For advice on investing, it is best to contact Cyprus- Real Estate.