Why Now Is the Best Time to Enter the Cyprus Property Market

Investors in Cyprus real estate rarely act on intuition. They look at the data. And right now, the data points in one direction.

Market Records

2025 closed with record figures: €6.5 billion worth of deals (+8% on 2024), 25,600 transactions (+4%), with foreign buyers accounting for 28% of the entire market. In the first quarter of 2026, the share of non-residents rose to 43%, and their number grew 22% year-on-year.

This is not a one-off spike. It is the third consecutive year of record-setting market performance.

Infrastructure Momentum

The state and private capital are investing simultaneously in the island's physical transformation:

• Larnaca: €415 million for the port and marina (3 parallel projects, 2027–2045), 50,000 sq m of land earmarked for development
• Paphos: €300 million Potima Bay marina (1,000 berths, concession expected in 2026, construction from 2027)
• Limassol: continued commercial and residential development along the coastline; St. Regis Residences — the first in Cyprus (sales launch July 2026)

Infrastructure is a lagging indicator for real estate. Prices start rising before construction, not after.

Tax Environment

Cyprus offers one of the most favourable tax regimes in the EU for private investors: - 0% capital gains tax on property sales (subject to conditions) - 0% inheritance tax — the asset is passed on without losses - 3.15% mortgage rate — a record-low rate available to residents and non-residents - Abolition of the SDC levy (2.25% on rental income) as part of the 2026 reform - Automatic 20% expense deduction for landlords, with no documentation required

Yields That Are Hard to Find in the EU

• STR (short-term rentals) in coastal areas: 10–17% per year
• Long-term rentals in Limassol: 6–8% per year, corporate tenants
• Branded residences: +31% market premium, +15–25% rental premium

A combination of capital growth and current income in a single market is a rarity in 2026.

Why Now

The market has grown but has not hit its ceiling. Larnaca and Paphos are accelerating at prices below Limassol's. Infrastructure projects are financially confirmed but not yet delivered. This is the optimal entry point — before the impact of construction is reflected in prices.