published:

15.12.2025

source:

Melrose villas

Cyprus today is more than just beaches - it’s a serious financial hub. If you’re looking at Cyprus real estate as a way to put your money to work, in 2025, there are strong opportunities. The villa market is stronger than it’s been in years: prices are growing, and transactions have jumped by 15%.

Investors are getting more sophisticated. They don’t just want a house by the sea - they want an asset that generates real returns. Let’s look at where it makes sense to invest and what types of property in Cyprus actually exist.

Cyprus Property Market

The market has split into clear segments, with demand shifting toward new builds. About 62% of all villas on the market are new-builds. Why is that? Because older properties often don’t meet modern energy-efficiency standards, investors no longer want to sink money into major renovations.

If you are planning to invest in Cyprus, look to the primary market (new builds). Buying off-plan can deliver the biggest capital uplift (often 10-15%) even before completion. And if you are still comparing Cyprus with other countries, it is useful to look at the article Cyprus vs Spain to understand the differences in taxes and incentives.

Types of Property in Cyprus

It’s easy to get confused by the terminology in Cyprus. Not every detached house is a villa. Here’s a simple cheat sheet so you know what you’re paying for:

- Detached Houses. This is 51% of the market. This is just a standalone house with no shared walls, but often without a pool or premium finishes.
- Semi-Detached Houses. Two homes with a shared wall. Cheaper than a detached house, but with more privacy than an apartment.
- Maisonettes. Often two-level units - somewhere between an apartment and a townhouse, often with a shared pool.
- Villas. This is the premium segment (35% of the market). Typically, you get a larger plot, a private pool, high-end finishes, and a prime location.

Villas are currently one of the most compelling options for Cyprus property investment. Many buyers compare a house with a penthouse. To choose the right one, read the difference between penthouse and villa.

Cyprus Rental Yields

How much can you really earn? Cyprus rental yields depend on the city and season. Here are typical ranges:

- Paphos: 6.5-8%. The best balance of price and quality.
- Limassol: 5-7.5%. The highest entry price, but higher-income tenants tend to be based here (IT, finance).
- Larnaca: 4.5-6%. Budget option.

It is important to understand that these figures aren’t pulled out of thin air. For example, in Limassol, the rental rate in the summer can reach €1,350 per night, and in the winter it can drop to around €850 per night. However, due to the city's business activity and company relocations, demand here remains year-round, unlike purely resort areas.

If you buy a solid villa in Limassol (for example, Melrose for €1.65 million), then the net yield can be around 7.4% p.a. This is after allowing for around 20% of management and maintenance costs, because it’s hard to hit those numbers without professional property management.

That kind of stability attracts not only businesses but also celebrities. Learn more about celebrities living in Cyprus, perhaps someone famous will become your neighbor.

What will happen in 2026?

Some analysts expect premium prices to rise by another 7-9% in 2026. In other words, the Cyprus real estate market will continue to grow, especially in the segment of new villas.

The strategy is simple: if you want to earn on resale, buy off-plan (at the project stage). If you want to rent out immediately, buy a completed property on the resale market. But before buying, be sure to understand the legal side. The article Cyprus property law for foreign buyers will help you avoid pitfalls.

Investing in Cyprus real estate is a long game, but with nice perks: the sea, security, and stable passive income.