Is buying real estate in Cyprus a good investment? Analytics and prices in 2024

If you are interested in buying property in Cyprus in 2024 and are wondering about this, then we will provide an answer that is not based on general rationales and characteristics of Cyprus, but on specific figures that will give you a clear idea of the benefits and potential profitability.

• In 2023, property sales in Cyprus broke a record

According to the Cyprus Land Department, the number of transactions in 2023 was 15,567 units compared to 13,409 in 2022, an increase of 16%.

The largest increase of 33% was recorded in Larnaca, where 3,185 transactions were concluded, which is significantly higher than the 2022 figure of 2,402 transactions.

• Growth in construction

The number of residential units grew 10.3% year over year in January–October 2023, according to Cystat.

The construction production index for the third quarter of 2023 was 186.29 units, representing an increase of 7.9% compared to the third quarter of 2022, according to data published by the Cyprus Statistical Service (Cystat).

This positive trend indicates the stability of the construction market and highlights the confident development of the industry.

This significant increase indicates increased interest in construction and infrastructure projects, which in turn may be associated with growing demand for housing, commercial facilities or tourism infrastructure.

• High profitability

Cyprus real estate is one of the most profitable in Europe.

For example, apartments in Cyprus can bring an annual yield of more than 10% (10.1% for the 2nd quarter of 2023 – RICS (Royal Institution of Chartered Surveyors).

Renting villas and holiday homes can bring an investor from 6-7%. Especially, villas with swimming pools or houses with sea views in the regions of Larnaca, Paphos and Limassol are often in demand in the short term or holiday rental market.

Investments in commercial real estate such as shops, offices or warehouses can return between 5-8%.

• Significant participation of foreign investors

According to information from the Department of Lands and Surveys, in 2023, more than a fifth of real estate transactions were carried out by foreigners.

During the 12 months of 2023, there was a 16% increase in the volume of purchase and sale transactions with foreign investors compared to the same period in the previous 2022.

The positive dynamics confirm the confidence of foreign investors in the prospects for growth and stability in the real estate market in Cyprus.

• Real estate prices are constantly rising

According to data published by the Central Bank of Cyprus (CBC) and the Cyprus Statistical Service (Cystat), property prices in the Republic of Cyprus continued their upward trend.

The increase in property values is shown both for the last quarter of 2023 and for the entire year 2023.

On an annual basis, property prices in Cyprus increased by 7.9% during 2023.

In particular, in the third quarter of 2023, property prices in Nicosia increased by 4.6%, in Limassol by 14.9%, in Larnaca by 13.4%, in Paphos by 18.5%, and in Famagusta a decrease of 1.8% compared to the same quarter in 2022.

According to real estate appraisers, prices for residential property in Cyprus in 2024 will be:

✔ In Larnaca, the cost per square meter in 2024 will be from 3,500 to 4,000 euros (from 2,500 to 3,500 euros in 2023);

✔ In Paphos, the selling price of apartments and houses in 2024 will be from 2500 to 3500 euros per sq.m (from 2000 euros to 3000 euros per sq.m in 2023);

✔ In Limassol in 2024, sales prices for apartments and houses will range from 4,000 euros to 5,500 euros per sq.m.

Read: Where is the Best Place to Buy Property in Cyprus? Exploring the Top Regions for Property Investment

• An additional increase in prices for the sale of office space is also expected in Cyprus.

✓ In the capital Nicosia, prices for the sale of office space in 2024 will remain at the level of 2023, ranging from 3 thousand euros to 4.5 thousand euros per 1 m2.

✓ In the city of Larnaca, an increase in prices for the sale of office space is predicted in the range from 2.5 thousand euros to 3.5 thousand euros per sq.m. This is a significant increase compared to the level of 2-3 thousand euros in 2023.

✓ Prices for office space in Limassol will range from 5-6 thousand euros per 1 m2.

✓ In Paphos, it is expected that prices for the sale of office space will remain at the same level and will range from 2-2.5 thousand euros per 1 m2.

Real estate in Cyprus – the path to permanent residence

The Cyprus Investment Program allows non-EU citizens to immediately obtain permanent residence in Cyprus.

The permit has no validity period (indefinite) and can apply to the second spouse and children.

To obtain Cyprus permanent residence by investment, the applicant must invest at least 300,000 euros plus VAT in real estate. The property can be residential or commercial. The holder of such permanent residence can apply for Cypriot citizenship after five years of residence.

The figures confirm that buying property in Cyprus in 2024 is considered a good investment!

This provides stable passive income with the prospect of long-term growth and is an attractive investment.