For a growing number of Israeli citizens, buying property in Cyprus is becoming more than just an investment decision — it is a kind of “Plan B”. Ongoing political and social uncertainty, security concerns and the high cost of living are prompting some families to look for an alternative place to live outside the country.
Israeli publication Zman Yisrael notes growing interest in Cypriot real estate, while also warning potential buyers about risks that may lie behind promises of high returns and rapid property appreciation. The main factors making Cyprus attractive include its proximity to Israel, more affordable property prices, tax conditions and changes in the euro-to-shekel exchange rate.
Property prices in Limassol and Paphos
According to real estate agents interviewed by the Israeli publication, property prices in Cyprus may increase by around 5–10% per year. For properties purchased before construction is completed, sellers sometimes forecast price growth of 20–30% by the time the project is delivered.
In central Limassol, a one-bedroom apartment can cost up to €350,000. In areas outside the city centre, such as Agios Athanasios and Zakaki, similar properties are priced at around €250,000.
In Paphos, prices for one-bedroom apartments near the sea and the harbour can also reach €350,000. In the Universal area, prices range from €250,000 to €300,000. In Geroskipou, where prices are around 20% lower, buyers are promised greater growth potential due to planned new developments. One example cited is a 62 m2 apartment priced at €210,000, excluding VAT.
Additional expenses must also be taken into account when buying. A furniture package can cost from €15,000 for a one-bedroom apartment to around €24,000 for a two-bedroom apartment, while installing solar panels can add another €5,000 to the overall cost.
At the same time, Cyprus’s official residential property price index shows more moderate growth: in the first quarter of 2026, prices increased by 3.4% year on year and by 1.6% compared with the previous quarter. The second quarter was also exceptionally active: according to industry research, 4,622 residential property transactions were completed. Limassol led with 1,230 transactions, while Paphos was almost level with 1,195.
Property in Cyprus as a “Plan B”
The publication tells the story of Lina Wiener, whose daughter moved to Paphos with her family. Lina herself bought an apartment there for €160,000, with the deal completed even before the building permit had been obtained. According to her, the purchase was not only about investment. The family wanted to have an alternative place to live in case the situation in Israel deteriorated further.
She describes Cypriot property as a kind of “Plan B” and links the family’s decision to political and social tensions, the high cost of living, judicial reform and the consequences of the events following October 7. According to Lina, her grandchildren are now growing up in Cyprus without air-raid sirens and the constant fear of rocket attacks. They attend a Cypriot public kindergarten and speak Greek, English and Hebrew.
According to estimates cited by Zman Yisrael, around 3,000 Israeli families live permanently in Cyprus, with their number increasing by several hundred each year.
The publication also mentions tens of thousands of Israelis who have purchased property on the island. However, it does not provide official data confirming this specific estimate.
The proximity of the two countries — with a flight taking around 40 minutes — also plays an important role. Additional factors include the possibility of obtaining a residence permit without holding an EU passport and the development of Jewish communities in Paphos and Larnaca. The number of businesses catering to Israeli clients is also growing, including restaurants offering kosher products, as well as the number of direct flights.
At the same time, buying property does not in itself mean automatic entitlement to permanent residence. Under Cyprus’s current rules, the fast-track procedure for obtaining an investment residence permit requires a minimum investment of €300,000. In the case of a house or apartment, this means a new-build property purchased from a developer for at least €300,000 plus VAT.
Growing interest sparks debate in Cyprus
The increasing number of foreign buyers, including Israelis, periodically becomes a subject of political debate in Cyprus. Zman Yisrael recalls statements by MEP Fidias Panayiotou, who spoke of the effective “buying up of Cyprus” through investment in real estate and major development projects. Israeli Ambassador to Cyprus Oren Anolik, in turn, rejected such accusations and urged Cypriots to welcome people who choose the island for living and investment regardless of their nationality.
The issue is particularly sensitive against the backdrop of the affordable housing problem for local residents. The publication notes that with an average salary of around €2,000, some Cypriots find it difficult to afford rent for a small new apartment costing up to €900 per month.
At the same time, foreign interest in Cypriot real estate genuinely remains high. During the first six months of 2026, 10,007 property transactions were registered on the country’s real estate market, while the value of transferred properties reached €2.23 billion. Limassol remained the market leader by value with €906 million, while Paphos accounted for €438 million.
High returns: where promises end and risks begin
Despite strong demand, market specialists advise potential buyers to be cautious about sellers’ promises of guaranteed returns. The main risks include rising construction costs, delays in project completion, property maintenance and management expenses, as well as possible problems with tenants.
Particular caution should be exercised with promises of guaranteed rental income or double-digit returns. According to one market specialist, a more realistic return in some areas is around 5–6%.
Additional costs associated with the purchase must also be taken into account. Separate property acquisition rules apply to citizens of non-EU countries: in particular, approval from the local district administration is required. According to official information, a foreign buyer may purchase up to two properties, which may be at different stages of construction.
Relocating to Cyprus also requires serious financial planning. According to the publication, a family with two children attending private schools may need an income of at least €8,000 per month. To purchase a quality investment property in a good area, buyers should expect to spend at least €170,000.
Thus, Cypriot real estate can indeed remain an attractive option for investment and long-term residence, especially for buyers from Israel. However, the market can no longer be viewed as a source of guaranteed quick profits. Price growth, location, construction quality, maintenance costs, taxes and actual rental demand must be assessed separately for each property.