Cyprus Real Estate Market Thriving Despite the Citizenship by Investment program Discontinuation

Discover why the real estate market in Cyprus continues to thrive despite the Citizenship by Investment program discontinuation. Learn about rising property prices, demand for short-term rentals, and government bonuses attracting investors.

The real estate market in Cyprus continues to thrive despite the discontinuation of the Citizenship by Investment program. Investors are still flocking to the island for various reasons, including rising property prices, increased demand for short-term rentals, and attractive bonuses offered by the government.

Property prices in Cyprus have been steadily increasing, especially in popular tourist areas like Limassol and Paphos. In the first quarter of 2024, the average price per square meter was 2426 euros, marking a 7.3% increase from the previous year. Mortgage interest rates are also on the rise, currently averaging around 3.5–4.5%.

The demand for short-term rentals has surged due to the booming tourism industry, leading to higher prices for apartments and villas in sought-after locations. Additionally, long-term rental properties are in high demand, particularly in popular tourist and urban areas, as expats flock to Cyprus for work or study.

Affordable housing remains a top priority for both local residents and budget-conscious foreigners, with the government offering housing subsidy schemes to support low-income buyers. Luxury real estate, coastal properties, and units suitable for short-term rentals are also highly sought after by wealthy citizens and investors.

Sales volumes and prices of residential properties in Cyprus have been on the rise, with a total of 17,689 properties sold in 2023, representing a 22.5% increase from the previous year. While property prices continue to climb, the market remains attractive to investors due to favorable taxation, high rental income potential, and relatively affordable prices compared to other European countries.

Foreign buyers, including Russians, Chinese, Lithuanians, British, Ukrainians, and Israelis, are actively investing in Cyprus real estate, particularly in regions like Limassol, Paphos, Larnaca, and Famagusta. Despite the cancellation of the Citizenship by Investment program, investors can still benefit from reduced VAT rates on new buildings, inheritance tax exemptions, and the possibility of obtaining a residence permit through real estate investment.

In addition to financial incentives, Cyprus offers a favorable Mediterranean climate, beautiful beaches, low crime rates, and widespread use of English, making it an attractive destination for property investment. Various opportunities exist for making money in the real estate market, including rental income, capital gains from resale, real estate development, shared ownership, and more.