When it comes to Cypriot real estate, the sun-drenched coasts of Limassol and Paphos immediately come to mind, luring tourists and investors with their resort appeal.
However, in the shadow of these well-known favorites, another, possibly more strategically calculated interest is emerging—toward the heart of the island, its capital, Nicosia. This city, unique in its status as the last divided capital in the world, is not only the administrative, political, and cultural center of Cyprus, but is also becoming an increasingly visible player in the investment arena.
Nicosia is a melting pot of history and modernity, business activity and a measured lifestyle. It is home to government institutions, headquarters of major Cypriot and international companies, and prestigious educational institutions. This concentration creates a constant demand for quality housing, distinct from the seasonal fluctuations of the coastal zones. But are Nicosia’s new developments truly an attractive asset for investors in the current economic reality of early 2025? What factors define this market’s potential, and what pitfalls should one be aware of?
In this article, we will conduct an in-depth analysis of the new housing market in Nicosia, assess the prospects for price growth, explore the benefits and risks of buying property at the construction stage, and examine specific investment opportunities through current projects.
Nicosia’s New Developments Market: The Capital’s Pulse in Numbers
To understand Nicosia’s investment appeal, one must look at the broader picture of Cyprus’s real estate market and identify the capital’s particularities. According to the Cyprus Department of Lands and Surveys, the total value of transferred property in 2024 reached €4.3 billion, which is 2.3% lower than in 2023. Reports from reputable sources such as PWC Cyprus, RICS Cyprus, and the Central Bank of Cyprus’s Property Price Index indicate that the Cypriot real estate market overall is showing resilience following the turbulence of previous years. However, price and demand dynamics differ significantly by region and property type. Unlike the coastal cities, Nicosia is less dependent on tourist flows and relies on a more stable domestic demand and growing interest from international businesses.
Demand: Who Is Buying in Nicosia?
Demand for new builds in Nicosia is driven by several key groups. First, local residents—families, young professionals, and students at the capital’s universities—who are seeking modern, comfortable housing for personal use. Second, foreign professionals and employees of international companies relocating to Cyprus due to attractive business relocation programs. Notably, this category of buyers and tenants often has higher expectations regarding housing quality and neighborhood infrastructure. Third, investors—both local and international—who view real estate in the capital as an asset for wealth preservation, rental income, or capital appreciation.
Data from the Land Department shows sustained activity in the capital. For example, in March 2025, the number of property sales transactions in Nicosia increased by 18% compared to March 2024, reflecting steady demand for urban real estate. In total, 3,527 sales contracts were filed in Nicosia in 2024, underscoring ongoing interest in property in the capital.
Supply: What and Where Is Being Built?
The volume of new construction in Nicosia, according to Cystat data on building permits issued, remains consistently high, reflecting developers' confidence in the market’s outlook. In Q1 2024, 708 residential building permits were issued in Nicosia (+7.27% compared to Q1 2023) with a total value of €266.7 million (+15.37% YoY), covering the construction of 1,043 new residential units (+20.86% YoY).
The main activity is not only concentrated in traditionally prestigious central districts, but also in rapidly developing suburbs such as Lakatamia, Latsia, Aglantzia, and Strovolos. These areas attract with their optimal balance of price, quality of life, and accessibility to infrastructure.
Developers are actively responding to market demand by offering modern residential complexes with well-thought-out layouts, high-quality materials, and—crucially for Cyprus—high energy efficiency.
Price Dynamics and Key Trends
According to analytics agencies and RICS reports as of early 2025, prices for new builds in Nicosia are showing moderate but stable growth. The Central Bank of Cyprus’s Residential Property Price Index (RPPI) showed a 4% year-on-year increase for Nicosia in Q1 2024. While this is slightly slower than in other regions, it signals stability. Apartment prices in Nicosia grew by 5.1% over the year, while house prices rose by 3.6%.
In 2024, the average price per square meter in new residential complexes in central Nicosia ranged from €2,500 to €3,000, and in suburban areas from around €2,200. The average residential property price per square meter in Nicosia stands at approximately €2,518. This makes entering Nicosia’s market attractive to a broader range of investors, especially considering that the median price for apartments across Cyprus at the start of 2025 was around €500,000–510,000, with an average of €4,000 per square meter. In comparison, the median housing price in Nicosia is estimated at approximately €350,000.
Key trends shaping Nicosia’s new build market. Several major trends are shaping the current landscape of Nicosia’s new developments:
- Full transition to energy efficiency class "A". This is no longer just a competitive advantage—it has become the market standard. All the projects we reviewed are classified as "A". This shift is driven by tightening EU and Cypriot building regulations, as well as a growing awareness among buyers and investors of the long-term savings on utility costs. With rising energy prices, reducing bills becomes a strong argument. Moreover, class "A" buildings retain their value and liquidity on the secondary market better than less efficient older properties. This aligns with the global ESG trend, which is increasingly influencing investment decisions.
- The rise of emerging neighborhoods. Alongside prestigious areas like Dasoupolis and Strovolos, districts like Lakatamia and Latsia are rapidly developing and attracting investment. They offer modern infrastructure, good transport connections, and more affordable prices, making them appealing to young families and investors focused on the rental market.
- A focus on functionality. Today’s buyers value practicality. Demand is shifting toward two- and three-bedroom apartments with spacious verandas or balconies, mandatory parking (often covered), and private storage rooms. Thoughtful layouts and the presence of two bathrooms even in two-bedroom units are becoming the norm—even for mid-range properties.
Growth Prospects: Drivers of Real Estate Prices in Nicosia
When assessing investment potential, it is important to understand the factors that will influence property values in Nicosia in the medium and long term.
- Economic Stability and Growth. Cyprus’s economy demonstrates resilience, supported by diversified sectors including services, tourism, shipping, and a growing IT cluster. Forecasts by the European Commission and IMF for Cyprus remain moderately optimistic despite global challenges, with GDP growth projected at 2.9% in 2025. Stable economic growth, control over unemployment, and inflation (forecast at 2.1% in 2025) create a favorable backdrop for the real estate market. Nicosia, as the business and administrative center, benefits doubly from this stability.
- Infrastructure Development. Nicosia is constantly evolving. The construction of new road interchanges, modernization of urban spaces, emergence of modern business centers, and expansion of educational campuses (such as the University of Cyprus) all enhance the capital's appeal for living and working, stimulating demand for housing in adjacent areas. Furthermore, one must consider the untapped development potential even in existing neighborhoods like Acropolis, where over 10,000 additional residential units could potentially be built—or even more!
- Attracting International Business and Talent. The successful implementation of the government’s headquartering strategy—attracting international companies to Cyprus, particularly in IT, fintech, and services—directly impacts Nicosia's real estate market. The influx of highly skilled foreign professionals creates demand for quality rental housing and property purchases, especially in well-equipped and prestigious areas. Data from Invest Cyprus confirms growing interest from international companies in Cyprus, and Nicosia is one of the main beneficiaries of this trend. This creates a unique dual demand in the capital: stable domestic demand is complemented by increasing international demand, making Nicosia’s market potentially more resilient to external shocks—such as fluctuations in the tourism sector, which impact coastal cities more strongly.
- Quality of Life and Demographics. Nicosia offers a high level of safety, quality education (including international schools), a developed healthcare system, and a rich cultural life. This attracts both Cypriots from other regions and foreigners seeking a comfortable place to live. Demographic trends, such as the gradual population growth of the capital and the increasing number of households, also support housing demand.
- Rental Market. The rental market in Nicosia is active and stable thanks to the constant influx of students, young professionals, and employees of international companies. Rental yield for apartments in Nicosia is estimated at around 5%, which is quite competitive. In 2024, the average rent for a one-bedroom apartment was about €600 per month, €875 for two bedrooms, and around €1,000 for three. Stable rental demand reduces risks for investors and ensures a regular cash flow.
Off-Plan Investments: Benefits and Pitfalls
Many attractive new developments in Nicosia are offered for sale at the design or early construction stage—so-called off-plan properties. This approach has significant advantages for investors but also comes with certain risks.
Financial Benefits:
- Lower Entry Price: Developers typically offer the best prices at the start of sales. By buying off-plan, investors lock in the price of a property that could increase significantly in value over 1–3 years of construction. For example, an apartment bought for €200,000 at the excavation stage could be worth €230,000 or even €250,000 upon completion, depending on market trends and project quality.
- Capital Appreciation Potential: The main appeal of off-plan properties is the potential to profit from value appreciation during construction. This period allows investors to "ride the wave" of market growth with minimal upfront investment.
- Flexible Payment Plans: Developers often offer convenient payment schedules spread over the construction period. Typically, an initial down payment (e.g., 30%) is required, with the balance paid in stages as construction progresses, easing the financial burden.
- Wider Selection: Early buyers get the pick of the lot—better floors, views, layouts, and even roomier parking spaces.
Potential Risks and Considerations:
- Construction Delays: Construction is complex, and delays are not uncommon. These can impact investors’ financial plans, especially if quick resale or rental was intended.
- Developer Reliability: The key to success is choosing a reputable developer with a proven track record and solid financial standing. Thorough research on the developer’s history is essential before purchase.
- Market Fluctuations: The real estate market and economy may change during construction. Price increases aren’t guaranteed, and under unfavorable conditions, the final value may fall short of expectations. Off-plan purchases are essentially a bet on future market growth and require careful trend analysis.
- Construction Quality: There's a risk that the final finishing or materials may not match what's advertised. It’s crucial to study contractual specifications and choose developers known for their attention to quality.
Minimizing Risks:
- You can reduce off-plan risks through thorough due diligence on the developer, involving an independent lawyer to review the sales contract, and confirming whether there are bank guarantees in place (where applicable in Cyprus). Choosing a well-known developer with a good delivery record is the best insurance. Buying during the construction stage requires not only selecting the right property but also a clear assessment of market prospects and the reliability of the developer. It’s a strategy suited to investors with some risk tolerance but offers potentially higher returns than buying completed homes. The prevalence of off-plan offerings in Nicosia indicates developers’ confidence in the market’s future. Still, every investor must form their own independent opinion based on all relevant factors.
Nicosia Projects: An Overview of Investment-Attractive New Developments
Theoretical market analysis becomes concrete when looking at specific projects. Here are several current developments in different districts of Nicosia, presented by the head of DOM Nicosia’s regional office, illustrating the variety of investment opportunities in the capital.
Nicosia 107, Aglantzia
We begin with the Nicosia 107 project, located in the quiet, green area of Aglantzia, known for its calm atmosphere and proximity to parks and the university. This boutique complex of just eight apartments offers a rare sense of seclusion for the capital. Each apartment occupies half a floor, ensuring high privacy. Modern features such as private parking are included. Energy efficiency class “A” ensures low utility costs. Apartment sizes range from 96 to 129 m² (two or three bedrooms), suitable for young couples and families alike. With prices from €200,000 to €260,000, Nicosia 107 is an attractive entry-level option for long-term rental or resale to privacy-seeking buyers.
All available units at Nicosia 107
If Nicosia 107 stands for tranquility and intimacy, the next project offers different advantages—scale, prestige, and top-tier infrastructure.
Theo Residence, Dasoupoli
Theo Residence is being developed in the prestigious Dasoupoli district, which combines the calm of a respectable residential area with proximity to key city points: schools, supermarkets, business centers, and convenient access to the main highway. The project offers spacious apartments from 116 to 180 m² with two or three bedrooms—well above market average and especially valued by families and discerning tenants. Energy class “A,” private parking, and a storage unit per apartment are standard. With prices from €242,000 to €540,000, the project spans from comfort+ to premium segments, allowing for a range of investment strategies—from leasing to executives to capital appreciation in a prime location.
All available units at Theo Residence
Moving from prestigious Dasoupoli, we turn to fast-developing areas of Nicosia, where the focus is on practicality and affordable investment for broader demand.
Cott 52, Lakatamia
The Cott 52 project in Lakatamia is a prime example of smart investing in one of Nicosia’s fastest-growing residential clusters. Lakatamia has become a popular neighborhood with well-developed infrastructure. Its proximity to the “Metro” supermarket and other daily conveniences makes this complex especially attractive for tenants and buyers seeking comfort at competitive prices. The project consists of a three-story building with just 12 two-bedroom apartments (each 97 m²), ensuring a peaceful, friendly atmosphere. Energy class “A” and well-thought-out layouts are key advantages. With prices from €180,000 to €230,000, this is one of the best-value offerings in its class, promising good capital growth potential and strong rental demand as the area continues to develop.
All available units at Cott 52
Lakatamia shows the potential of emerging residential hubs, and a similar trend is visible in nearby Latsia, where another exciting project focuses on modern tech and sustainability.
Latsia 21, Latsia
Latsia 21 is another example of modern housing in a rapidly developing Nicosia suburb. The area combines convenient transport access, modern housing, and a peaceful setting. The project offers two-bedroom apartments ranging from 99 to 102 m². Layouts are particularly well-designed: each apartment has two bathrooms, including an en-suite in the master bedroom, enhancing comfort. Special emphasis is placed on sustainability and energy savings: the building is rated energy class “A” and includes a rooftop photovoltaic system to power lighting and shared facilities. Stylish insulated façades add appeal. Covered parking and a storage unit per apartment complete the package. Priced from €183,000 to €223,000, Latsia 21 is an excellent option for both personal living and rental investments targeting modern, energy-conscious residents.
All available units at Latsia 21
We conclude with a neighborhood that blends long-established prestige with the serenity of one of Nicosia’s greenest corners—Strovolos.
Everest Homes 25, Strovolos
Everest Homes 25 is located in a prestigious and peaceful part of Strovolos, prized for its mature infrastructure, greenery, and refined surroundings. The building’s minimalist yet elegant architecture and limited number of apartments (just nine) create a sense of exclusivity and comfort. Each apartment has two bedrooms and a spacious veranda, with total sizes ranging from 104 to 111 m²—ideal for comfortable living or rental. With energy class “A” and excellent access to local infrastructure—from commercial centers and parks to government offices—this project is especially attractive to professionals working in the city. Prices from €190,000 to €215,000 keep the development within a relatively accessible investment segment for Strovolos, while still offering high construction quality and a prestigious location.
All available units at Everest Homes 25
To make it easier to compare key parameters of the reviewed projects, we present them in a table format:
Project Name | District | Type / Number of Apartments | Area (m²) | Price Range (EUR) | Key Advantage |
Nicosia 107 | Aglantzia | 2–3 bedrooms / 8 apartments | 96 - 129 | 200 000 – 260 000 | Privacy (half floor per apartment), quiet area |
Theo Residence | Dasoupolis | 2–3 bedrooms / (number not specified) | 116 - 180 | 242 000 – 540 000 | Prestigious location, large layouts, developed infrastructure |
Cott 52 | Lakatamia | 2 bedrooms / 12 apartments | 97 | 180 000 – 230 000 | Affordable price, developing area, proximity to Metro supermarket |
Latsia 21 | Latsia | 2 bedrooms / (number not specified) | 99 - 102 | 183 000 – 223 000 | Eco-friendliness (photovoltaics), 2 bathrooms, growing district |
Everest Homes 25 | Strovolos | 2 bedrooms / 9 apartments | 104 - 111 | 190 000 – 215 000 | Prestigious area, affordable price for the location, privacy |
As we can see, the new-build market in Nicosia offers considerable diversity — from boutique projects in quiet green zones to large-scale developments in prestigious neighborhoods and practical options in fast-growing suburbs. For an investor, the key question is not simply “Is it worth investing in Nicosia?” but rather “Which district and type of project in Nicosia best match my investment goals, budget, and risk tolerance?” Selecting the right area and project is a key component of a successful strategy. The availability of high-quality new builds in various price categories and locations reflects the maturity and depth of the capital’s real estate market.
Navigating Nicosia’s New-Build Market – Your Next Step
An analysis of the current real estate market in Nicosia shows that the capital of Cyprus presents an attractive and multifaceted opportunity for investment in new construction. The market demonstrates resilience, supported by diversified demand from both the local population and a growing international business community. The country’s economic stability, infrastructure development, and attractive government programs create favorable conditions for property value growth in the medium term.
New developments are appealing thanks to modern layouts, high construction quality, and, most importantly, energy efficiency of Class A — which is becoming the new standard, ensuring long-term savings and asset liquidity. Investing at the construction stage (off-plan) opens up opportunities for maximum return through lower entry prices and potential capital appreciation, though it does require careful risk assessment and selecting a reliable developer.
Nicosia offers a broad spectrum of investment opportunities — from affordable apartments in rapidly developing areas ideal for rental income, to prestigious residences in upscale locations with strong value growth potential.
Making a real estate investment decision always requires careful analysis and consideration of your individual financial goals and risk tolerance. It is recommended to thoroughly research the areas and specific projects that interest you — possibly even visit them in person — and consult with experts who know the specifics of the Nicosia market inside and out. The projects presented in this article are only a selection of the current listings available through DOM, the largest real estate agency. These options were chosen together with Elena Studitskikh, Head of DOM’s regional office in Nicosia. Further research and professional guidance will help you find the ideal option for investment or personal living.
Nicosia truly opens new horizons for real estate investors. The key to success in this market lies in deeply understanding its features, carefully choosing a property, and taking a thoughtful approach to decision-making.
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