Cyprus has long since ceased to be merely a resort; today, it is a promising destination for real estate investments. When considering the island as a whole, the free areas of Famagusta stand out particularly brightly.
It's not just a region with azure beaches and picturesque bays. It is a vibrant area where the flow of tourists increases every year, infrastructure develops, and the demand for short-term rentals steadily grows. People don't just buy villas and apartments here; they start businesses, turning square meters into a source of stable income.
The area encompasses both popular resorts with a developed tourist industry and quieter, less developed places that are of particular interest to forward-thinking investors. These areas are currently attracting those who want to invest wisely and maximize their short-term rental profits.
In this article, we will tell you about five unique corners of the southeastern part of the island. Each area offers special conditions for investing in real estate for short-term rentals. From the coastal comfort of Kapparis to the authentic depth of Deryneia, each area reveals its investment value, offering different paths to success.
Kapparis offers cozy tranquility with a view to the future
Kapparis is a young, rapidly developing area increasingly chosen by those seeking peace and comfort away from the hustle and bustle. It's an ideal place for short-term rental investments, especially in the off-season. The area is well-established, and the infrastructure works all year round. Thanks to the mild climate, tourists come here even in winter.
Kapparis has cozy bays with crystal-clear water, miniature sandy beaches, and picturesque views, creating the perfect conditions for a family vacation. There are still plenty of vacant lots and new residential complexes, making Kapparis particularly attractive to investors. The combination of affordable prices and growing tourist interest provides a solid foundation for a stable income.
Protaras is the heart of tourist excitement
Protaras is perhaps the most recognizable resort in the free city of Famagusta. At the height of the tourist season, the streets are bustling with tourists, the restaurants and bars stay open late, and the beaches become centers of activity. Despite its popularity, however, Protaras still has vacant land available for development, especially in areas away from the seafront. These areas are becoming real investment gems.
Demand for short-term rentals here is stable and high: tourists are willing to pay to spend their vacation near some of the best beaches in Cyprus, including the famous Fig Tree Bay. Apartments and villas with sea views or easy access to the promenade are in high demand. Thanks to the area's popularity, it's easier and cheaper to advertise accommodations here. Protaras offers liquidity and a quick return on investment.
Agia Thekla offers space and prospects
If you are looking for a place with huge growth potential, take a look at Agia Thekla. This area is not yet fully developed, but that is precisely what makes it valuable. It offers spacious plots, low building density, and peace and quiet, all of which are highly valued by European and Middle Eastern tourists.
The new marina complex, Ayia Napa Marina, is nearby and is already influencing the development of the entire coastal area. Prices are rising, yet they remain attractive for early investors. Properties here are particularly appealing to tourists seeking privacy and a high level of comfort. Villas with swimming pools and panoramic sea views rarely remain vacant, especially during the high season. As infrastructure grows, the area promises to become one of the most elite in Famagusta. Pernera strikes a balance between life and leisure. It is like a bridge between bustling Protaras and secluded Kapparis.
The area is famous for its balance. There is a promenade lined with cafés and quiet streets surrounded by greenery. It has long been popular with European tourists, especially the British, who appreciate its peaceful atmosphere, developed infrastructure, and proximity to the sea.
Pernera — a balance between life and leisure
It is ideal for families with children, as well as for couples looking for romance. It's easy to rent accommodations here for short periods, especially during the high season. Additionally, the area is still fairly open to development, with new projects regularly appearing, offering investors modern apartments and townhouses with high rental potential. Access to beaches, well-maintained paths, and restaurants makes the area particularly comfortable for guests.
Deryneia is an urban alternative to the seaside
If you look a little further inland, the traditional Cypriot town of Deryneia catches the eye, with its authentic atmosphere and growing interest from foreign investors. Although it is not directly adjacent to the sea, the beaches of Protaras and Kapparis are no more than a 10–15 minute drive away.
The main advantage of Deryneia is the affordability of real estate. Prices here are lower than on the coast, yet the infrastructure is just as good. Schools, supermarkets, and medical facilities are all close by. In recent years, tourists looking for a longer, more "balanced" vacation have increasingly booked accommodations here. It's an ideal location for digital nomads traveling as couples or families. Rental income can be combined with resale benefits, as the area is gradually gaining investment value.
There are many options for investing in real estate for short-term rentals in Free areas of Famagusta
The type of property you choose plays a key role when it comes to short-term rentals. Different areas of Famagusta offer everything from cozy apartments for couples and digital nomads to spacious villas for families or groups of friends. Each type of property offers different opportunities for investors, ranging from quick-return initial investments to high-margin premium properties. Let's take a look at the apartments and villas currently available in Famagusta's free areas and what makes them attractive.
A new three-bedroom villa in Kapparis
This exclusive villa in the prestigious Kapparis area is an excellent investment opportunity for short-term rentals. Its modern architecture, spacious layout, and light, airy atmosphere make it particularly attractive for both leisure and a stable income. Panoramic windows fill the house with natural light and visually expand the space, creating a feeling of comfort and freedom. The minimalist interior with elegant details emphasizes refined taste and creates a comfortable environment for tourists and permanent residents alike.
The villa features a private pool, a large terrace, and outdoor seating areas. It is the perfect place for families, couples, and guests looking for a quiet retreat with quick access to amenities. Sandy beaches, cozy cafés, shops, and walking trails are just minutes away.
The project is in the off-plan stage, which allows you to purchase the property on favorable terms and adapt it to your personal preferences. This is more than just a home—it's a valuable asset with high rental potential in one of the most desirable areas of Cyprus.
The average daily rental price for a similar villa is around €210, and the average annual occupancy rate, considering the high and off seasons, can reach 55–60%. With these parameters, the annual gross income will be approximately €45,000. After deducting operating costs, including management company services, utility bills, taxes, and maintenance (about 25–30% of income), the net profit ranges from €31,000 to €33,500 per year. Thus, the real return will be about 5.5–6% per year.
Price: €564,000 + VAT
New 3-bedroom villa in Protaras
A new 3-bedroom villa in the heart of Protaras is the perfect choice for a short-term rental investment. This modern complex of three detached houses is located just a few minutes' walk from the best sandy beaches, shops, cafés, and restaurants in this popular resort. The spacious interiors, open-plan living room, stylish kitchen, and covered veranda create a comfortable environment for relaxation. The property features a private pool, large plots of land, and magnificent views of the Mediterranean Sea. Its modern design and high-quality construction materials make it attractive to both tenants and owners.
With an average daily rental price of around €220 and an annual occupancy rate of approximately 60%, the annual gross income can reach around €48,000. After deducting standard maintenance costs, utilities, management fees, and taxes (approximately 25%-30% of income), the net profit can range from €33,000 to €36,000 per year. This equates to a net return of 6.2–6.7% per year, making this property an appealing short-term rental investment in one of Cyprus's most popular resorts.
Price: €535,000 + VAT
New 4-bedroom villa in Agia Thekla
This house is part of a stylish complex of 20 detached villas built in a contemporary architectural style with well-thought-out layouts and attention to detail. Spacious interiors, a private pool, barbecue area, outdoor shower, covered terrace, and an en suite bathroom in each bedroom provide tenants with a high level of comfort. The villa is built with energy-efficient materials and is equipped to modern standards.
The property is ideal for short-term rental investment. Thanks to its proximity to the sea and the developing marina, the villa is in high demand among tourists. With an average daily rental rate of around €215 and an annual occupancy rate of around 60%, you can expect an annual income of approximately €47,000. After deducting maintenance and management costs, the net profit is around €33,000 per year, equivalent to a 6.2% yield. This makes the villa a comfortable home by the sea and a profitable asset in a rapidly developing region.
Price: €530,000 plus VAT.
New 3-bedroom apartment in Deryneia
This spacious three-bedroom apartment is located in a new residential complex in Deryneia. It is situated in a quiet and privileged area near the Famagusta fire station. The project combines comfort, privacy, and modern design. Each of the three low-rise buildings has only five to six apartments with no adjoining walls to ensure quiet and privacy with natural light from all sides. Spacious covered terraces seamlessly connect to the living space, creating the perfect setting for year-round relaxation. Particular attention has been paid to quality construction, including class A energy efficiency, thermal insulation, photovoltaic systems, and preparation for air conditioning, heating, and electric blinds.
Thanks to its advantageous location in a residential area close to popular resorts, the property is ideal for leisure and short-term rentals. With an average rental rate of around €100 per day and an occupancy rate of around 55%, you can expect an annual gross income of approximately €20,000. After deducting maintenance and management costs, the net income could be around €14,000–15,000 per year. This corresponds to a return of around 6.5% of the apartment's value, making it an excellent opportunity for investors looking for modern property with steady income in Eastern Cyprus.
Price: €220,000
New 3-bedroom villa in Pernera
This three-bedroom villa is located in the prestigious Pernera area, just 800 meters from the best Blue Flag sandy beaches. This elegant residential project of 12 villas is in a quiet yet central location, just a two-minute drive from Kapparis and 10 minutes from Ayia Napa. Each villa has its own swimming pool, as well as the option of a spacious roof terrace with a barbecue area — the perfect space for relaxing in the fresh air. The modern architectural style, featuring clean lines, high-quality finishes, and a carefully designed layout, offers comfort and appeal for personal living and tourism.
Due to the high demand for rentals in Pernera, especially during the summer months, this villa is an excellent investment. With an average daily rental rate of around €230 and an occupancy rate of around 60%, you can expect an annual income of approximately €50,000. After taking operating costs into account, the net profit is approximately €35,000 per year. This gives investors a 6.8% annual return, an excellent indicator for real estate in one of eastern Cyprus's most rapidly developing coastal areas.
Price: €515,000
Real estate is more than just square meters. It is history written by time. It is confidence in the future. It is a tool that can preserve and multiply capital. The free areas of Famagusta are exactly where this formula works perfectly. Here, investments in short-term rentals come to life: in the sound of the waves, the morning sun streaming through the apartments' panoramic windows, and the constant flow of tourists seeking comfort and authenticity.
Each area — Kapparis, Protaras, Agia Thekla, Pernera, and Deryneia — offers more than just a place to live. These areas are strategic points on the investment map where economic calculation and emotional appeal converge.
It's a rare case where investment doesn't require compromising personal or financial interests. Every square meter in these areas is a piece of personal freedom and a working asset.
The unique areas of Famagusta are currently a growth point that could lead to your investment success tomorrow.
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