Today, the capital's property market is developing rapidly and offers many opportunities for profitable investment. Let's take a look at the main market segments, their potential profitability and new trends.
Investing in apartments
According to the annual reports of PWC and RICS, the apartment segment is the most dynamically developing, stable and in-demand segment of the capital's real estate market.The market value and rental prices of apartments in Nicosia have continued to grow steadily over the past decade.
Several factors have contributed to this:
- The population's standard of living and the economic situation. The rising cost of living in the capital and rising property prices have increased the need for more affordable, low-cost housing.
- Nicosia is the capital of the island's top universities, attracting more students every year. Most of them prefer to live close to the universities, renting a studio or one-bedroom apartments.
- Living in the city centre or in the surrounding areas is becoming increasingly popular. Most expats and young professionals working in the capital prefer to live in the city centre, close to their workplaces as well as attractions, cafes, restaurants and shops.
1-bedroom apartments and studios
Comfortable and compact, they are particularly popular with students and young professionals. These properties offer the opportunity to have your own space at an affordable price. According to statistics, one-bedroom flats and studios have become the most sought-after property in the capital in recent years, with demand now outstripping supply.
The low price and ever-increasing demand for these affordable apartments make them particularly desirable and profitable for investors, guaranteeing a stable annual rental income.
Traditionally, the most prestigious and sought-after areas have been Likavitos and the city centre, popular with young professionals and expats, and Engomi, an area popular with students due to its proximity to universities. Other popular areas in this segment, not too far from the centre, are Strovolos, Ayios Domedios and Dasoupolis. Prices in these areas are slightly lower than in the city centre and Engomi.
Below are some rough statistics for some of the most sought-after areas. Please note that property prices can vary depending on many factors: the age and general condition of the building, the appearance and renovation of the apartments, their size and location.
Property Statistics
Studio apartment:
- Average market value - 90 000 euros
- Average price per 1 m2 - 1.900-2.600 euros
- Average monthly rent - 500 euros
- Average gross rental yield - 6.66%
1-bedroom apartments in the Likavitos and Engomi areas:
- Average market value - 137-141 000 euros
- Price per 1 m2 - 2.700-2.800 euros
- Average monthly rent - 800-1000 euros
- Average gross rental yield - 6.98-8.51%
1-bedroom flats in other districts:
- Average market value - 104 000-125 000 euros
- Average price per 1 m2 - 2.000-2.500 euros
- Average monthly rent - 600-800 euros
- Average gross rental yield - 6.87-7.68%
2-bedroom apartments
2-bedroom apartments offer more space and are suitable for singles, couples and even small families. These properties can be sought after by students, young families, couples without children and professionals who want more space or a separate area to work in. Although there are many 2-bedroom flats for rent on the Nicosia property market, i.e. supply exceeds demand, their versatility makes them sought after by a wide range of people, guaranteeing a stable rental income.
As with 1-bedroom apartments, the most popular areas will be the central districts: Likavitos, Ayios Domedios, Engomi - for students or university workers, Strovolos and Dasoupolis, which are suitable for both single persons and families, and Lakatamia and Makedonitissa, which are more suitable for those who prefer to live in quieter areas.
Vital statistics
Likavitos and Engomi:
Average market value - 242 000-294 000 euros
Average price per 1 m2 - 2.70- 3.0200 euros
Average monthly rent - 1.200 - 1.500 euros
Average gross rental yield - 5.95% - 6.12%.
Other districts:
- Average market value - 242 000-285 000 euros
- Average price per 1 m2 - 2.300 - 2.500 euros
- Average monthly rent - 1.100 - 1.400 euros
- Average gross rental yield - 5.89% - 6.03%.
Main trends
According to statistics from the Ask WiRE Index and the Central Bank of Cyprus, the price of apartments for sale in Nicosia rose by 4.3% last year, while the price of apartments for rent rose by 4.8%. Eco-design and environmental awareness are becoming increasingly popular. As a result, apartments with energy-efficient design using solar panels and thermal insulation are more in demand and can bring higher rental income as well as lower energy costs. There is an increased demand for apartments and studios with outdoor spaces such as patios, verandas or balconies. Such properties will have a higher value and rental income. In some cases, the government may provide subsidies and grants for the development of the affordable housing segment.
Pros and Cons of Investing in Flats
Advantages:
- Comparatively low initial investment costs.
- Low maintenance and repair costs.
- High and steady demand for affordable housing guarantees stable income.
- Fairly high gross rental income.
- The most profitable investment in the short term.
- Higher liquidity - affordable housing is easier to sell than more expensive housing.
- Faster turnover - it takes less time to find tenants as affordable housing is sought after by a wide demographic.
- Less volatility and exposure to external factors.
Disadvantages:
- Lower monthly rental income.
- Less tenant stability. They may be less trustworthy in this price range than in the premium segment. Increased risk of non-payment or late payment of rent, damage to property, etc.
- Comparatively low capital growth.
- In the long term, their value may either rise slightly or fall.
- Government control and regulation of affordable housing prices may affect the ability to increase rental prices.
Luxury apartments and penthouses
Over the past few years, investing in prime property in Nicosia has become increasingly popular. The capital is becoming a major commercial and financial centre, attracting an increasing number of high earners: CEOs and founders of companies and start-ups, employees of international companies and organisations and, historically, diplomats and consular staff, as well as other wealthy expats.
As a result, the capital's premium property market is growing rapidly and luxury apartments and penthouses are in high demand. Premium properties are comfortable, modern, spacious apartments, often with panoramic views of the city and a full range of additional services and facilities. Most premium developments are located in the centre of Nicosia and the Lykavitos area. Recently, however, areas such as Agios Andreas, Engomi, Strovolos and Makedonitissa have also begun to develop in the premium segment. Investing in premium apartments is a profitable investment that guarantees a higher gross rental income and long-term capital appreciation compared to conventional apartments.
The data below are averages for each apartment category. Prices and gross annual income depend largely on the prestige of the building and its location, the size and condition of the apartments, and the additional amenities/services provided in the condominium.
Statistics
2-bedroom penthouses:
- Average market value - 320 000-350 000euros
- Average price per 1 m2 - from 2.900 euros
- Average monthly rent - 2.200-2.800 euros
- Average gross rental yield - 8.25%-9.6%.
3-bedroom penthouses:
- Average market value - from 450 000 euros
- Average price per 1m2 - from 3.200 euros
- Average monthly rent - 2.800-3.500 euros
- Average gross rental yield - 9.33%
4-bedroom penthouses:
- Average market value - 600 000 euros
- Average price per 1m2 - from 3.700 euros
- Average monthly rent - from 3.500 euros
- Average gross rental yield - 7-9%
Main trends
People with high-income levels are becoming more and more environmentally conscious. All luxury residential complexes are built according to the principle of eco-design, with energy efficiency in mind, using eco-friendly materials and solar panels. As a result, smart home technologies are becoming increasingly popular and in demand. Penthouses with beautiful panoramic views are more expensive and generate higher gross rental income. Premium apartments in quieter areas such as Agios Andreas, Engomi and Makedonitissa may be more popular with affluent retired people and families with children. Serviced apartments for short-term rentals are also increasingly in demand.
Advantages and disadvantages of investing in premium apartments
Advantages:
- Favourable taxation: Low capital gains tax and no inheritance tax make investing in premium properties even more profitable.
- This is a niche segment and its share of the capital market continues to grow.
- Tenants of premium properties are more reliable and solvent.
- Premium apartments are exclusive and in demand due to the limited number of residential complexes and the availability of land for their construction in the city centre.
- Capital appreciation from long-term investments. Due to the modern design of the complexes and their prestigious location, their value will only increase over time.
Disadvantages:
- Fairly high initial investment price.
- High maintenance and repair costs.
- The premium property market is more volatile and dependent on the economic and political situation and foreign investors.
- Investments in the premium segment pay off in the longer term.
- Premium apartments are a niche market and demand may be less stable than for more affordable apartments.
Investing in villas
In Nicosia, villas are most sought after by locals and expats - professionals working for international companies, entrepreneurs and managers of various projects and start-ups, as well as diplomats and their families. Unlike coastal towns, where villas are popular with tourists for short-term rentals, long-term rentals are more common in Nicosia. The short-term rental market in the capital also tends to cater to corporate clients visiting the city on business. On this basis, investing in villas in the capital offers several income opportunities:
- Long-term rentals to expats, diplomats and their families.
- Short-term rentals for corporate clients.
- Buying cheaper older villas, renovating them and reselling them at a higher price point.
The property market in the capital offers both more affordable villas and luxury properties in the premium segment. The most prestigious areas are considered to be the central districts of Engomi, Strovolos, Dasoupolis, Eleonon and Aglanja. More affordable areas, but also further from the centre, are Lakatamia, Lacha and the suburban villages of Geri, Tseri and Deftera. Below are the average sales and rental prices of different types of villas and the estimated gross income.
Statistics
3- and 4-bedroom villas in the areas of Lacha, Lakatamia, Geri, Tseri and Deftera:
- Average market value - 350 000-550 000 euros
- Average price per 1m2 - 1.800-2.300 euros
- Average monthly rent - 1.500-2.500 euros
- Average gross rental yield - 5.14%-5.45%.
3- and 4-bedroom villas in the areas of Engomi, Strovolos and Aglantzia:
- Average market value - 600-850 000 euros
- Average price per 1m2 - 2.500-3.500 euros
- Average monthly rent - 3.000-5.000 euros
- Average gross rental yield - 6-7.06%.
4- and 5-bedroom villas in the areas of Lacha, Lakatamia, Geri, Ceri and Deftera:
- Average market value - 450 000-700 000 euros
- Average price per 1m2 - 1.900-2.500 euros
- Average monthly rent - 2.000-3.500 euros
- Average gross rental yield - 5.33% - 6%
4- and 5-bedroom villas in the areas of Engomi, Strovolos, Aglantzia:
- Average market value - 800 000 euros - 1.5 million euros
- Average price per 1m2 - 2.800- 4000 euros
- Average monthly rent - 4.000-6.500 euros
- Average gross rental yield - 5.2% - 6%
Premium Villas
Luxury villas in Nicosia are usually located in the most prestigious areas, often in gated villa communities that are popular with many expats. These luxury properties offer clients exclusive design, comfort, privacy and security, as well as additional spaces such as wine cellars, home cinemas, home gyms and saunas. The villas are eco-designed and equipped with the latest technology and features such as smart home. Below are the average prices for the premium villas.
Villa Statistics
3- and 4-bedroom villas:
- Average market value - 900 000 euros - 1.5 million euros
- Average price per 1m2 - 3.500-4.500 euros
- Average monthly rent - 5.000-7.500 euros
- Average gross rental yield - 6-6.67%.
4- and 5-bedroom villas:
- Average market value - 1.5-3 million euros
- Average price per 1m2 - 4.000-5.500 euros
- Average monthly rent - 6.500-10.000 euros
- Average gross rental yield - 4%-5.2%.
Main trends
According to statistics from Ask WiRE Index and the Central Bank of Cyprus, the prices for the sale and rent of villas and houses have increased by 4.4% in 2024. It is becoming popular to buy older villas in premium areas, renovate and upgrade them: installation of solar panels, smart home systems, interior design, all of which increase the market value of the property and the income from renting or selling. Properties with additional amenities such as a swimming pool, modern technology and eco-design are attracting more affluent tenants. High-end serviced villas are gaining popularity in the Nicosia property market, attracting corporate clients for short-term rentals.
Advantages and disadvantages of investing in villas
Advantages:
- Good potential for long-term capital appreciation. Plots of land and villas in prestigious areas that are steadily increasing in value, which can provide a good income over the long term.
- Detached houses are usually a better long-term investment than flats, as land prices rise steadily.
- Villas can generate a higher gross income than flats, especially if they have additional amenities - garden or swimming pool, smart home features, eco-design.
- Less competition for tenants compared to apartments.
- More freedom to make changes compared to apartments - investors can renovate and update the design of an old villa, transforming it into a premium property and increasing its original value. At the same time, the value of the flat will largely depend on the condition of the whole complex, which cannot be changed at the will of the investor.
Disadvantages:
- Higher initial investment threshold compared to apartments.
- Higher repair and maintenance costs for the villa and its surroundings.
- It is a less liquid property - finding clients to sell or rent a villa can take longer than for an apartment.
- In Nicosia, this market segment is more dependent on foreign professionals working for international companies. Therefore, the demand for villas is more dependent on the economic situation than the demand for apartments.
- Narrower demographic of tenants compared to apartments.
- Property tax and VAT on villas is higher than on flats.
- Higher municipal costs compared to apartments.
Commercial Property Investment
In 2025, Nicosia continues to develop as a commercial and business centre. The city is creating a vibrant business ecosystem, especially for IT, cybersecurity, financial technology (FinTech) and start-up companies. Innovation hubs and co-working spaces are growing in popularity, creating a favourable microclimate for commercial property investment, particularly in offices and mixed-use developments.
The capital's property market is also developing in different segments, including a growing number of shopping centres and industrial (warehouse) premises, which offer good investment opportunities. The average data for each segment is shown below.
Office space
Office space in the city centre, Likavitos, Strovolos, Engomi, Aglantzia (average price per 1m2 at purchase):
- Premium offices - 3.000-4.000 euros
- Standard offices - 2.000-3.000 euros
Office space in the city centre, Likavitos, Strovolos, Engomi, Aglanzha (average price per 1m2 for rent):
- Standard offices - 15-30 euros
- Premium offices - from 30 euros
- Average gross rental yield - 5-7%
Advantages and disadvantages of investing in office property
Advantages:
- Due to the increasing number of foreign companies and start-ups in the capital, there is a growing demand for office space.
- Offices in prestigious areas will only increase in price over time.
- Favourable business environment. Cyprus offers a relatively low corporate tax rate of around 12%.
Disadvantages:
- This sector is more dependent on the economy and foreign investors than residential property.
- High initial investment costs. Modern offices in prestigious areas are relatively expensive.
- Gross rental income may initially be lower than for retail and industrial (warehousing) investments.
Shops/shopping areas
Shops/shopping areas in the area of Mall of Cyprus, Makarios Avenue, on the main streets of the Old Town (average price per 1m2 for purchase and rent):
- Shopping centre - 3.500-5.000 euros
- Shops on the main streets - 4.000-6.500 euros
- Average rent per 1m2 - 20-50 euros
- Average gross return on rent - 6-8%
Advantages and disadvantages of investing in retail property
Advantages:
- Currently there is growth and development in the retail sector, especially in new shopping centres.
- There is an increase in consumer demand and spending, both in the mid-price and luxury segments.
- There is an increase in demand for fast food and beverage outlets.
Disadvantages:
- Relative market instability - over the last few years in Nicosia, the popularity of certain areas for trading has been replaced by others, leading to the closure of outlets in some streets and their neglect.
- High sensitivity to changes in the economy. During the economic crisis, many shops and cafes in the capital either closed or reduced the number of outlets.
Warehouses and industrial premises
Popular neighbourhoods: Lacha, Dali, Tseri, Strovolos (industrial area)
- Average price per 1m2 - 1.200 - 2.500 euros
- Average monthly rent per 1m2 - 5 -12 euros
- Average gross yield - 6-9%
Advantages and disadvantages of investing in industrial property:
Advantages:
- Constantly growing demand due to the development of delivery services, logistics hubs.
- Highest gross rental income compared to offices and shops.
- Stability - industrial leases are typically signed for 5-10 years
Disadvantages:
- Dependence on economic conditions.
- Risks of changes in regulations and taxation for logistics companies, which may reduce demand.
Key trends
According to the latest Ask WiRE Index data, office prices in Nicosia increased by an average of 1.3% over the last year, while retail prices decreased by 1.4% and industrial and warehouse prices increased by 0.57%. The concept of coworking office space in premium office buildings is gaining popularity. These spaces offer all modern amenities and technology, meeting and presentation rooms, as well as opportunities for socialising and networking. This concept offers a more flexible income-generating scheme: spaces can be rented for a short period (daily or for a few weeks) or for a longer time. Demand for such spaces is growing, particularly in the IT, finance and consultancy sectors, among young entrepreneurs and start-up founders. Investment in mixed-use developments is also growing in popularity. Typically located in the most desirable areas, they combine residential, office and retail space, helping to diversify the investment portfolio. Such projects are cheaper and more stable, offering high returns in both the short and long term.
The success of a property investment depends on many factors, as well as your short and long-term objectives. To make the right decision, it is important to learn more about the market segment you are interested in, its trends and the demographics of demand.
Currently, statistics and expert opinion suggest that the most profitable investment in the short term is affordable apartments or studios. However, villas and premium apartments are more suitable for long-term investment. The highest gross income is generated by industrial premises (warehouses). At the same time, the safest and most profitable investments are in modern mixed-use developments in the most prestigious areas of Nicosia. Such projects offer greater freedom and flexibility of use and guarantee constant demand and stable rental income.
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