In 2023, the number of international buyers in Cyprus skyrocketed by 150% compared to the previous year. Real estate sales also saw a significant uptick, increasing by 12% from 2021 and tripling since 2015. This surge underscores Cyprus’s growing appeal as a prime destination for foreign investment in real estate.

What Makes Cyprus So Attractive?

Cyprus has long been known for its low cost of living, beautiful weather, and rich historical heritage. However, several recent developments have made the island even more appealing to international buyers.

Golden Visa Program

One of the key attractions is the Golden Visa program. Foreign buyers who invest in property worth €300,000 or more are eligible for permanent residence in Cyprus. This initiative has proven to be a significant draw for investors seeking a stable and picturesque European base.

Expanding Urban Development

Urban development in Cyprus has also contributed to the influx of international buyers. Major cities like Larnaca, Limassol, and Paphos are seeing a rise in residential property investments. Limassol stands out with the highest value transactions, averaging €330,000. Apartments, particularly those priced under €250,000, are becoming increasingly popular, indicating a preference for smaller, well-connected urban homes over larger rural properties.

Attractive Investment Returns

Cyprus offers lucrative investment opportunities, with an average rental yield of 8.5% per year. Additionally, property owners can pursue Cypriot citizenship after five years of residence. These financial incentives make Cyprus an attractive option for investors looking for both high returns and long-term stability.

Best Places for Urban Living in Cyprus

Paphos

Paphos, located on the western coast, is renowned for its historical and natural beauty. It is famously known as the birthplace of the ancient Greek goddess Aphrodite. Key neighbourhoods include Kato Paphos, which is near the bustling harbour, Chloraka, offering serene sea views, and Tala, known for its elevated locations with stunning vistas and a mix of villas and apartments.

Larnaca

Larnaca is a more affordable city, with homes averaging around €160,000. In 2023, 20% of property sales were to foreign buyers. Popular areas include Mackenzie Beach, a trendy and vibrant locale with all essential amenities, Finikoudes, a peaceful area perfect for leisurely strolls, and Drosia, a quiet neighbourhood ideal for families and older residents.

Limassol

Limassol is the most popular destination for property buyers, offering a modern, cosmopolitan atmosphere. In 2023, international buyers accounted for 34% of all home sales. This southern coastal city features a diverse range of neighbourhoods. Notable areas include the historic Old Town (Ayia Napa), with its narrow streets and cultural landmarks, and more contemporary locales like Agios Tychonas, Germasogeia, and Potamos Germasogeias, known for their upscale living options and modern homes.

Nicosia

As the capital, Nicosia blends historical charm with modern living. It is unique as the only divided capital in the world, yet it maintains a lively atmosphere and a diverse expat community. Noteworthy neighbourhoods include the Old City, filled with historic sites, museums, cafes, and restaurants, Engomi, a residential area with parks, universities, and modern properties, and Strovolos, a family-friendly suburb with ample green spaces and essential amenities.

In short…

The rising number of international buyers and the surge in real estate sales highlight Cyprus as a top destination for foreign investment. The combination of the Golden Visa program, expanding urban developments, and attractive investment returns makes Cyprus an ideal location for those looking to invest in property. Whether you’re drawn by the historical charm of Paphos, the affordable living in Larnaca, the cosmopolitan vibe of Limassol, or the unique appeal of Nicosia, Cyprus offers something for every type of investor.