Villa or Penthouse: a Better Choice for Investors in Cyprus

PUBLISHED:

23.07.2025

SOURCE:

Melrose villas

Are you choosing where to invest your money in premium real estate: in a spacious villa or a chic penthouse? It's like choosing between a private mansion with a garden and an apartment at the top of the world. Both options are symbols of luxury and status, but each has its own characteristics, especially when it comes to investment. Let's figure out what is right for you.

Differences Between a Villa and a Penthouse: Area, Layout, Status

Let's start by sorting out how these two types of housing differ from each other.
A villa is the embodiment of privacy and life in nature. Its size is typically much larger than a penthouse, as it includes not only the house itself but also a large plot of land, a garden, and a swimming pool. Villa owners have complete freedom to act on their territory. The layout of the house can be anything: multi-level, with huge open spaces, or separate zones. A villa is a symbol of seclusion and your own personal world, completely fenced off from prying eyes.

A penthouse, on the other hand, is a symbol of life "above the city." Its area is often smaller, but it's very functional, occupying the entire top floor (or part of it) of a building. Although the layout of a penthouse depends on the shape of the building itself, it always includes panoramic windows, spacious terraces, and, in some cases, access to the roof. A penthouse gives its residents exclusivity, stunning city views, and access to all the building's amenities, such as a concierge or a gym.
Study the features and choose the solution that is right for you.

Investment Attractiveness: What Brings More Income

What is more profitable in terms of money? There is no clear answer here, it all depends on the goal. Let's look at the general trends. Premium real estate as a whole is showing good dynamics. For example, according to a report by Knight Frank, prices for elite residential real estate worldwide rose by an average of 3.1% in 2024. This confirms the stability and attractiveness of investments in this segment.
Let's compare both options.
Capitalization and Value
Villas often show faster price growth, especially if they are located in sought-after coastal or resort areas. This is because the value of the land increases over time, which directly impacts the overall value of the entire property.
Penthouses, on the other hand, are characterized by a very high price per square meter. They are typically sold at the highest price within a building, making them an exclusive but expensive asset.
Rental Income and Demand
Villas attract large families, lovers of secluded getaways, and those who plan to stay for a long time. The rental rate for a villa will be higher in absolute terms, but its profitability may be subject to greater seasonality.
Penthouses enjoy stable demand year-round, especially in large cities and business centers. They are rented by both business people and tourists who appreciate comfort and prestige.
Liquidity
As for liquidity, penthouses located in bustling urban areas often sell faster. Their uniqueness and limited number create a specific audience of buyers who are ready to act quickly.
Therefore, both options are excellent but suit different needs.

Demand For Rentals Among Tourists And Expats

Who prefers to rent and what do they prefer? Villas are ideal for family holidays by the sea, long vacations, or for expats with children who want to live away from the hustle and bustle of the city but close to international schools. Demand for them is especially high during the holiday season.
Penthouses are in high demand among millionaire tourists, businesspeople on business trips, or single expats/couples who value city life and proximity to offices, restaurants, and entertainment. They are ideal for short- and medium-term luxury rentals.

Maintenance And Servicing Costs

This is where the big difference for your wallet lies: with a villa, you will pay for everything yourself. This includes pool maintenance, landscaping, security (often individual), and repairs to the house itself. Costs can be higher and less predictable, as you are responsible for the entire property.
With penthouses, it's easier, as most of the building maintenance costs (security, cleaning of common areas, maintenance of lifts, gyms, shared rooftop pool) are covered by monthly service charges. You don't have to personally hire a gardener or clean the pool. Water and electricity bills will usually be lower, as the area is smaller.

Prestige And Lifestyle

What do you want to get besides money? A villa — the pinnacle of privacy and seclusion. Living in a villa means being able to completely disconnect from the world and enjoy your own garden, pool, and barbecue area without leaving the gate. It is the luxury of space and unity with nature.
A penthouse is a symbol of urban luxury, exclusivity and access. You are at the centre of events, but at the same time you have your own oasis with stunning panoramic views. It is a life where the city is at your feet and all the amenities of the building (concierge, room service, gym) are just a few steps away.

How To Make a Decision: Expert Advice

To choose the perfect option, ask yourself these questions:
1. What is your main goal? If you are looking for maximum privacy, a large plot of land and are prepared for higher but controllable maintenance costs, look towards a villa. If you value an urban lifestyle, access to building infrastructure, and prefer fixed monthly maintenance payments, a penthouse is the right choice for you.
2. Who is your tenant? Families with children look for villas. Businesspeople and couples who value the conveniences of the city look for penthouses.
3. How will you use the property yourself? If you dream of long summer holidays with your family by the sea, a villa is ideal. If you prefer dynamic weekends in the centre of a metropolis with access to restaurants and theatres, a penthouse is waiting for you.
4. What is your attitude to management? If you are ready to take care of the garden and swimming pool, a villa is the right choice. If you prefer a management company to take care of everything, a penthouse is the right choice.
Both villas and penthouses are excellent investments in the premium segment. The main thing is to understand which one best suits your dreams and financial goals.