Cyprus is consistently ranked among the most attractive countries in Europe for investment in resort real estate. It offers a combination of favourable purchase conditions, high rental potential and a stable legal system.

However, the primary concern for investors on the island is not the allure of the sun and sea, but rather tangible benefits and a well-defined plan of action.

There are several reasons why Cyprus is so popular among foreign buyers:

The system is advantageous for taxpayers. The area offers a range of financial incentives for potential buyers, including low rental income rates, the absence of inheritance tax, and tax breaks for non-residents.
There is a high volume of tourist demand. With a significant number of tourists visiting each year – up to 4 million, in fact – and a population of just over 1 million, the region experiences a considerable influx of tenants during the high season.
The developed infrastructure. The area enjoys excellent standards of healthcare, education and amenities.
Rising property prices. This is particularly evident in resort areas where demand consistently exceeds supply.
There is the possibility of acquiring a permanent residence permit by purchasing real estate. This is a key incentive for major investors.

Investors are entitled to a simplified procedure for obtaining permanent residence in Cyprus when investing €300,000 or more in new real estate (finished or under construction). This benefit applies to investors and their families. This provides individuals with the opportunity to reside in an EU country without the obligation to reside permanently on the island.

Please find below a brief overview of the conditions for obtaining permanent residence in 2025.

The investment amount is from €300,000, exclusive of VAT and associated costs.
The property must be new and purchased directly from the developer.
The necessary funds must be sourced from international sources.
The minimum deposit required when opening a bank account in Cyprus is €50,000.
In order to be eligible, applicants must demonstrate the ability to generate stable foreign income. This is defined as a minimum of €50,000 per year for the main applicant, with an additional €15,000 for the spouse and €10,000 for each child.
The individual has no criminal record.

The programme provides permanent residence on the island and enhances the investment value of real estate, making properties attractive to other foreign investors and increasing liquidity.

The following report provides an analysis of current real estate prices.

On the whole, residential property in Protaras is more affordable than in Ayia Napa, particularly with regard to private houses and villas. The difference is evident in both the initial price of apartments and the price per square metre. In recent years, premium projects have been developed in Napa, raising the bar for the industry. In Protaras, however, there are new properties available with good locations and infrastructure, but without the markup for the status and big name of the resort.

Information regarding property prices in Protaras.

Prices for apartments in Protaras start at €170,000. These generously proportioned one-bedroom apartments are situated in close proximity to the coastline. Prices in the luxury sector start at approximately €5,500 per square metre and can reach €8,500 in the most prestigious new developments:

Fig Tree is conveniently located near Protaras's Fig Tree Bay beach, which is within easy reach of a swimming pool.
Sabai is a project of significant ambition in Protaras, with its own mini-infrastructure.

A spacious villa with a swimming pool in Protaras can be purchased for €350,000 and above. There are numerous affordable cottages available, offering a range of amenities, including swimming pools and extensive grounds. The most expensive properties are in the €5-6 million range. These are typically villas with premium finishes in gated, upscale complexes.

In the surrounding areas (for example, Kapparis), there are competitive offers available.

Please find below information regarding the cost of housing in Ayia Napa.

Apartments in Ayia Napa are primarily located in new buildings, as the secondary housing market consists almost entirely of private houses. One notable aspect of Ayia Napa is the prevalence of compact studio apartments.

This is due to the fact that more than half of all properties are intended for short-term rental, with the average age of potential tenants being 25-27 years old.

A small studio in Ayia Napa is available for purchase at a price starting from €120,000. For a slightly higher price, there are spacious one-bedroom apartments available. Luxury apartments are located in gated communities, the most exclusive of which is Ayia Napa Marina, which boasts its own yacht harbor, promenade, full resort infrastructure, and modern design. Apartment prices start at €1.5 million, with the penthouse priced at €9 million. A budget villa in Ayia Napa on the secondary market can be found for €300,000, while luxury new builds will cost more, starting at €600,000. The most expensive properties are villas on an artificial island in the Ayia Napa Marina complex, which includes private yacht mooring.

Potential to rent and generate income

For most investors, resort real estate represents more than just a beautiful apartment by the sea; it is a means of generating a stable income. The primary calculation is based on rent, both short-term during the tourist season and long-term during the rest of the year. In terms of financial considerations, the revenue generated from property rentals is frequently a pivotal factor when comparing Protaras and Ayia Napa as potential investment destinations.

Tourist flow and seasonality.

Ayia Napa is a popular resort in Cyprus offering a vibrant nightlife, festivals and a full programme of activities throughout the summer. It is a popular destination for young tourists and European youth. During the peak season, from June to September, the place is very busy. Properties are rented out with minimal downtime, ensuring a smooth and efficient process for all involved.

However, outside the season, the city experiences a notable decline in visitors and demand for services drops sharply.

Protaras is a more tranquil destination, better suited to family vacations. Visitors generally opt for comfort and stability, and as such, the area remains tranquil until morning. The season is slightly longer: people like to come here in spring and fall, when the intense heat subsides.

This ensures a more balanced distribution of demand over the year, thereby reducing the reliance on peak summer rental periods. In terms of tourist numbers, Ayia Napa is the winner, but when it comes to stability and predictability of income, Protaras is the more reliable option.

The average rental rate is as follows:

It is customary for Ayia Napa to have higher rates for short-term rentals, particularly during the peak season. Rental prices are highest for apartments and villas located in close proximity to the beach or the centre of nightlife. However, outside of the summer season, demand for these properties typically declines significantly. Without effective management, rental income can decline substantially, potentially leading to zero revenue.

Note: The minimum rental price for a studio in Ayia Napa during the summer months is €80 per day, with a maximum of €200 (if it does not fall into the luxury category). The cost of one- and two-bedroom apartments is approximately 1.5 times higher.

Short-term rentals of houses and villas vary significantly in terms of cost. For instance, a house during the peak season can be rented on a daily basis for €250 per night. A small cottage is available for rent for approximately €2,000 per month on a long-term basis, while a premium villa is available from €5,000 per month.

Rates in Protaras are slightly lower, but the income is more stable: demand lasts longer, and tenants tend to stay for a week rather than a couple of days. Apartments in residential complexes with swimming pools are particularly popular with families, couples, and "long-term tourists," as well as those who come to the island for the winter.

Note: Accommodation in Protaras during the season is available to rent from €80 per night, while more spacious apartments are available at a higher price point, starting from €200 per night. Compact houses are priced at a similar level.

Long-term rentals in a gated complex with all amenities will cost tenants from €1,250 per month. Rental prices for a house or villa in this area range from €1,500 to €1,800 per month, although this is only the initial rate.

Return on investment.

Ayia Napa is capable of generating high returns thanks to its dense tourist flow and top prices during the peak season. If you rent out your property on a daily basis and work with the relevant management teams (either through the services of a management company or by taking an active role in the process yourself), you can rapidly generate high returns. However, it is important to take seasonality into account: outside of summer, demand drops significantly, and some months may see zero or even negative returns.

Protaras is a less active but more stable model. It is more straightforward to rent out accommodation here for the majority of the year, and demand is more stable, with a consistent client base of family tourists, foreign visitors who spend the winter here, and those renting for one to three months. This is particularly beneficial for owners who wish to spend part of their time in Cyprus themselves, as Protaras offers an ideal environment for this: a tranquil pace of life, clean and safe beaches, and a quiet atmosphere.

Another key consideration is the cost of maintenance. In Ayia Napa, many properties are in the premium segment, offering features such as security, swimming pools, fitness centres and concierge services, which can increase monthly expenses. In Protaras, there are more compact complexes and mid-range apartments where utility bills are lower and there is no need for constant involvement in management.

Furthermore, the type of tenant has a direct impact on the property's condition and the rate of wear and tear. In Ayia Napa, there is a higher turnover of guests staying for shorter periods, which puts a strain on repairs and cleaning. In Protaras, properties are typically rented for extended periods or for family vacations, which reduces operating costs and enhances the property's preservation.

Therefore, the choice between these two destinations depends on your strategy: Ayia Napa is ideal for investors seeking to maximise short-term income, while Protaras is well suited to those who prioritise a balance between financial gain and the ability to enjoy their property comfortably.

Infrastructure and tourist attractions

Ayia Napa has historically attracted tourists from across the globe. The city's vibrant nightlife, advanced services, substantial hotel infrastructure and numerous festivals are key attractions for visitors. The city is geared towards mass tourism and offers maximum entertainment within walking distance. Protaras is a more intimate destination, with an emphasis on comfort, tranquility, and a family atmosphere. There are fewer tourists here, but they stay longer and choose the resort consciously.

The area's amenities include beaches, entertainment venues and attractions.

Ayia Napa has been selected as a resort location due to its vibrant atmosphere and substantial size. The area is home to some of Cyprus' best beaches, including the renowned Nissi Beach, renowned for its white sand and turquoise water, Makronissos with its picturesque bays, and Landa Beach, a popular destination that always attracts a large number of visitors. The local beaches operate according to a structured programme, with designated periods for sunbathers and those wishing to consume alcohol during the day, and for those who prefer to do so, evening DJ events and parties.

In addition, there is a wide range of entertainment on offer. Water World is a world-class entertainment complex offering a variety of activities, including water parks, clubs, yacht excursions, scuba diving and water sports. For those seeking an exciting vacation destination, Ayia Napa is an excellent choice.

In contrast, Protaras offers a distinctly different atmosphere. It is a resort for families with children, older tourists, and anyone looking for peace and quiet. The beaches here are just as beautiful, but they are calmer. Fig Tree Bay, Sunrise Beach and Kalamies have a gentle sandy entrance to the sea, without strong waves or loud music. They are well suited to relaxing with young children or for sunbathing in the morning.

In addition, a variety of entertainment options are available, offering a more relaxed experience. These include diving, boat trips, cosy restaurants by the sea and themed cafes. For children, there are small amusement parks, zoos and attractions. Protaras is frequently selected by families who prioritise a secure and tranquil environment devoid of excessive noise.

In summary, Ayia Napa is an ideal investment destination for investors interested in a young audience and short-term rentals operating at full capacity. Protaras is a resort that focuses on the family market, delivering reliability and the opportunity to enjoy the property in peace and quiet.

Transportation and accessibility

In terms of transport and infrastructure, both resorts are well connected and in close proximity to each other. Both destinations are easily accessible from Larnaca Airport, which is approximately 45–50 minutes away by car. However, the journey from Ayia Napa to Larnaca is slightly shorter, which is convenient for tourists arriving for a short stay or with transfers.

Protaras is located in close proximity to the town of Paralimni, the administrative and commercial centre of the region. This is a key consideration for individuals planning to reside in Cyprus for an extended period, those considering settling down, or those wishing to apply for documentation. The presence of key infrastructure in this location is a significant advantage.

Infrastructure for residential and recreational purposes.

Ayia Napa is, first and foremost, a resort. The city has been designed with tourists in mind, and everything here is geared towards leisure: restaurants, bars, cafes, souvenir shops, beach shops, nightclubs, and tour agencies. During the summer months, the city is a hive of activity 24/7. However, if the infrastructure is viewed from the perspective of year-round living, certain nuances become apparent. During the winter months, many businesses and services close, and some services are seasonal. The number of permanent residents in the area is less than the number of tourists, and this is evident in the atmosphere.

Protaras is more "balanced." Although it is also a tourist destination, the atmosphere here is closer to that of a residential town. There are fewer nightclubs and more supermarkets, pharmacies, family cafés and schools. Paralimni is also nearby, where municipal institutions, banks, medical centres and shops are concentrated. Prolonged stays are a particularly popular option in Protaras, making it a convenient destination for both vacationers and those seeking a more permanent residence, especially for families or older couples.

Развитие и градостроительные перспективы

Оба курорта не стоят на месте — за последние годы и Айя-Напа, и Протарас получили мощный толчок в развитии за счёт новых проектов. Это позитивно сказывается как на имидже региона, так и на стоимости недвижимости. Главное событие в Айя-Напе — масштабное строительство Ayia Napa Marina. Это премиальный проект с яхтенной гаванью, жилыми башнями, виллами на берегу, торговой зоной и ресторанной улицей. Он уже стал новой архитектурной доминантой района и продолжает активно развиваться. Марина рассчитана на 600 яхт и нацелена на привлечение состоятельных туристов и владельцев жилья класса «люкс». Это кардинально меняет облик курорта и повышает его статус. Кроме того, в Айя-Напе появится новый городской парк. Его строительство уже запущено: парк займёт 34 тысячи квадратных метров в самом центре города и станет точкой притяжения не только для туристов, но и для местных жителей. Этот проект — шаг в сторону более устойчивой, круглогодичной городской среды.

В Протарасе и Айя-Напе активно строятся новые жилые комплексы, но фокус у застройщиков немного разный. В Протарасе основной упор сместился в сторону современных апартаментов — в закрытых жилых проектах с бассейнами, охраной, подземными паркингами и общими зонами отдыха. Это формирует более «городской» и обжитой формат, который подходит как для арендаторов, так и для тех, кто планирует жить здесь самостоятельно — хотя и виллы здесь тоже строятся активно.

Айя-Напа, в свою очередь, делает ставку на вилловые комплексы. Здесь чаще появляются проекты с отдельными домами, приватными бассейнами и большим участком — ориентированные на премиальный сегмент и краткосрочную аренду с высокой доходностью. Такая застройка усиливает имидж курорта как элитного направления и хорошо вписывается в туристический ландшафт Айя-Напы.

Paralimni Marina, расположенная недалеко от Протараса, — еще один важный проект. Планируется, что она станет аналогом марины Айя-Напы, но с более спокойной атмосферой. Это усилит привлекательность восточного побережья для яхтенного туризма и инвесторов, которые ориентированы на комфорт и долгосрочную перспективу.

Таким образом, оба региона развиваются, но с разным вектором: Айя-Напа делает ставку на статус, туризм и событийность, Протарас — на жилую среду, приватность и спокойный комфорт.

Prospects for development and urban planning

Both resorts are undergoing significant development — in recent years, both Ayia Napa and Protaras have received a substantial boost in development thanks to new projects. This has had a positive impact on both the region's image and property prices. The primary development in Ayia Napa is the construction of the Ayia Napa Marina, which is of significant scale. This is a premium project with a yacht harbour, residential towers, beachfront villas, a shopping area, and a restaurant street. It has already become a new architectural landmark in the area and continues to develop actively. The marina has been designed to accommodate 600 yachts and aims to attract wealthy tourists and owners of luxury residences. This will significantly alter the resort's appearance and raise its status. In addition, a new city park will appear in Ayia Napa. Construction has already commenced on the 34,000-square-metre park, which will be strategically located in the city centre. This new attraction is poised to become a significant point of interest, attracting both tourists and local residents. This initiative represents a significant stride towards enhancing the sustainability and year-round viability of urban environments.

New residential complexes are currently being built in Protaras and Ayia Napa, but the focus of developers is slightly different. In Protaras, the focus has shifted towards modern apartments in gated residential projects, which typically offer amenities such as swimming pools, security, underground parking, and communal recreation areas.

This results in a more "urban" and lived-in aesthetic that is suitable for both renters and those intending to live here independently, with villas also being constructed in the area. Ayia Napa, in turn, is investing in the development of villa complexes.

In this area, projects featuring detached houses, private pools, and substantial plots are more prevalent, catering to the premium market and short-term rentals with high returns. This development serves to reinforce the resort's position as an elite destination and integrates seamlessly into the existing tourist infrastructure of Ayia Napa.

Paralimni Marina, located near Protaras, is another significant project. The plan is for it to be comparable to the Ayia Napa marina, but with a more relaxed atmosphere. This will enhance the appeal of the east coast for yachting tourism and investors who are focused on comfort and long-term prospects.

Consequently, both regions are undergoing development, albeit with different trajectories: Ayia Napa is focusing on its status, tourism and events, while Protaras is promoting its living environment, privacy and quiet comfort.

Where is it more profitable to invest?

The key to successful income-generating real estate investment is choosing the right strategy. As a result of the above, it is clear that Ayia Napa and Protaras will be significantly different.

Protaras is the ideal destination for those who value peace, quiet, a more relaxed pace, and a family-friendly atmosphere.

The resort is well suited to investors seeking both rental income and the opportunity to relax comfortably with their families. It is also a good option for long-term rental or a combined model: The strategy of renting out the property during the summer months, and residing in it during the winter, has proven to be a successful one. Protaras is an ideal option for investors who are not seeking the highest returns but rather reliable and consistent results.

Ayia Napa is an ideal location for investors.

Ayia Napa is more suitable for investors focused on short-term rentals and high seasonal income. It is an excellent option for individuals or entities seeking to actively manage their property or to work through a management company and who are targeting the premium segment, particularly in the context of villa complexes.

The resort is also interesting for those looking for liquidity and counting on the property's capitalisation to grow as the marina and tourist infrastructure develop.

Final comparison and recommendations.

In summary, Protaras is a more suitable location for those seeking a stable income, while Ayia Napa is better suited for those looking for business opportunities and rapid returns. Both destinations have demonstrated significant growth potential, are undergoing substantial development, and hold considerable interest. The final decision depends on the investor's priorities: stability or profit maximisation, personal use or pure investment. Both of these options are valid, provided they are implemented alongside the appropriate strategy.

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Source: DOM

Photos: Flickr, DOM

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Irina Zholnirova