Published:

26.02.2026

source:

Melrose villas

An interview with Victoria Yatsyuta — Managing Director of the development company VIDI Group, founder of the flagship project Melrose villas

— Victoria, the Cyprus real estate market in 2025 is often called the "year of stabilization." Do you agree with this statement?

— Partially, yes. But I would say more precisely: 2025 was a year of structural maturity. The market didn't just stabilize—it restructured. For the first time in recent years, we saw a balanced model: growth without overheating, demand without frenzy, and supply that became noticeably higher quality. This is fundamentally important for long-term investments.

Based on the figures from our final market review, the average price growth across the country was 3-12%, depending on the segment and region. At the same time, the residential sector maintained dominance—72% of all transactions, but commercial real estate is steadily strengthening its position, especially Class A and A+ offices and hotel projects.

— Which indicators of 2025 do you consider key to understanding the market?

— I would highlight a few basic figures that explain a lot:
Limassol's premium segment: more than 65% of all luxury and ultra-luxury transactions in Cyprus.
Price growth in Limassol's premium areas: above the market average, in some projects +10–12% per year.
Office real estate: rental rate growth of 8-12%, with an acute shortage of Class A and A+ offices.
Rental yield:
apartments — 4-6%,
villas — 6-8%,
offices — 6-8%,
hotels — up to 12%.
These are the figures of a mature market, not a speculative platform.

— The opinion that the market has "cooled down" and become less interesting is often heard. How do you respond to skeptics?

— My answer is very simple: the market has become selective. In 2025, weak properties stopped selling—and that's excellent. Today, liquidity is maintained by projects with a concept, location, and professional development. For investors, this is a huge plus: fewer risks, higher predictability.

— Is Limassol still the absolute leader?

— Yes, absolutely. Limassol is the engine of the entire market. It concentrates international business, investments, the best projects, and solvent demand. The scarcity of seafront land creates constant pressure on prices, and the influx of capital from Europe, Israel, and the Middle East supports stability even during periods of global uncertainty.

— How did the buyer profile change in 2025?

— The buyer has become more prepared and professional. This is not an emotional purchase of a "seaside apartment or house" but a strategic decision. People compare Cyprus with Spain, Portugal, Italy, and Dubai—and if they choose Cyprus, it's for the optimal balance between profitability, safety, climate conditions, and quality of life. In the premium segment, up to 70% of buyers are non-residents, and this is a structural trend.

— You talk a lot about market professionalization. How is it manifesting?

— In the demand for a modern development product, not just meters. Buyers want architecture, a reputable project and developer brand, infrastructure, service, management, energy efficiency, and security. This is precisely why interest in branded residences and lifestyle projects is growing. The market has stopped forgiving mediocrity with the phrase "but we are in the center and near the sea."

Photo/render: premium complex Melrose villas in Limassol
— One such professional and significant project in Cyprus is your flagship complex Melrose Villas. Tell us how it fits into current market trends.

— Melrose Villas is a direct response to the market demand of 2025-2026. We see a shortage of quality villas in prestigious areas of Limassol, and Melrose was created precisely as a niche, premium product.

Photo/render: finishes and furnishings in the Melrose villas complex
This is not mass construction, but a collection of villas with an emphasis on privacy, correct architecture and layouts, energy efficiency, and long-term value.

Photo/render: finishes and furnishings in the Melrose villas complex
— What are the project updates and when are the first residents expected?

— The project is on schedule. Construction completion and handover of the first keys are planned for 2026.

Photo: final stage of construction of the Melrose villas complex in the Agios Tychonas area of Limassol
There are 7 villas left in the project. We have registered high interest from international buyers, with a significant portion being clients who plan to live in the project themselves, rather than resell. For me, this is a key indicator of quality.

One more piece of news. Next to the Melrose Villas complex, there is a unique investment opportunity—we have planned a Class A commercial building of ~700 sq.m. with a budget of 7 million euros. It is an ideal format for a prestigious business residence or an innovative, small-format Class A+ office center.

In 2026, we have planned a series of investment pitchings and presentations. I believe this project will be realized quickly, as the demand among potential buyers is very high.

Photo/render: Class A commercial building next to the Melrose villas complex
— If we talk about the forecast for 2026 in general—what should the market expect?

— We forecast smooth price growth at 5-8%, and in the premium segment—up to 6-10%. Villas in prestigious areas of Limassol and Paphos will grow faster than the market due to land scarcity. Commercial real estate, especially offices and hotels, will also maintain investment attractiveness.

Victoria Yatsyuta's Advice to Investors and Real Estate Buyers in 2026

— Let's move on to practical recommendations. What do you advise to buy in 2026?

— If we speak the language of strategy, in 2026, one should bet on assets with stable demand and limited supply.

What to buy:

1) Class A+ offices in Limassol and Nicosia—the shortage will persist.
2) Premium villas in Limassol and Paphos with rental potential.3) Comfortable seaside apartments in Larnaca—the optimal balance of price and growth potential.
4) Warehouses and industrial real estate in Limassol and Larnaca—e-commerce continues to grow.
5) 4-star hotel and aparthotel projects.
6) Land plots for low-rise projects in promising areas.
— And which properties, on the contrary, would you not recommend buying?

— This is a very important question, because mistakes will be more costly in 2026.

What not to buy:

- outdated resale properties without renovation,- properties in areas with low population growth potential,- inefficient commercial spaces, outdated stand-alone retail formats without calculating the potential for foot traffic and purchasing power in that location; moreover, the pressure from large shopping centers significantly reduces the profitability of unthought-out retail spots,- small apartments without view characteristics, developed infrastructure nearby, and parking,- old-stock villas with very high operating costs,- plots without infrastructure and utilities,- projects with an inflated price without added value.
The market has become demanding, and weak assets lose liquidity.
— Your main advice to an investor in one sentence?
— In 2026, the winners will not be those who buy "cheaper than the market," but those who buy smarter than the market—with analysis, strategy, and an understanding of future liquidity.
— How do you see the Cyprus real estate market in 5 years?
— If we look professionally, without unnecessary emotions and illusions, in five years the Cyprus real estate market will be less mass, but significantly more expensive, structured, and investment-efficient than today.
Cyprus has objectively found itself in a unique geo-economic position. Against the backdrop of ongoing instability in Europe, the Middle East, and the Eastern Mediterranean, the island is perceived as a safe haven for life, capital, and business. This is not a temporary effect but a long-term trend that is already built into demand.

Politics and Macroeconomics: Stability as an Asset

Cyprus is an EU jurisdiction with a clear legal framework, prospective entry into the Schengen area, English law, a stable banking system, and a fairly predictable tax policy. Over a five-year horizon, this will become an even more valuable asset.

I expect:
- further strengthening of Cyprus's role as a regional financial and corporate hub;
- growth in the number of international companies, headquarters, and family offices;
- an increase in the number of wealthy residents choosing Cyprus not "temporarily" but as their primary country.
All these factors directly support the real estate market—primarily the premium and business-oriented segments.

Evolution of Development: From Construction to Product

In five years, development in Cyprus will be fundamentally different. We are already seeing the beginning of this process:
- moving away from scattered, concept-less construction;
- growth of master-plan and mixed-use projects;
- development of branded residences, serviced living, managed villas;
- stricter requirements for ESG, energy efficiency, and property management.
This means fewer projects, but higher quality and investment logic. The market will become more expensive in absolute terms, but more efficient in terms of risk and profitability.

Limassol as the Financial Capital of the Eastern Mediterranean

In five years, Limassol will finally solidify its status as the financial capital of the region.

I expect:
- limited land supply and strict control over new projects;
- price growth in the premium segment above the market average;
- further development of A+ offices, private schools, and medical infrastructure;
- increased demand for villas and small club projects with residences in prestigious areas.
Limassol will compete not with other cities in Cyprus, but with niche locations in Southern Europe and Dubai—in terms of quality of life and investment logic.

Other Cities: Specialization Instead of Competition

Paphos will strengthen its position as a resort and residential location with a focus on villas and hospitality.

Larnaca will become a city of growth—affordable housing, business infrastructure, logistics.

Nicosia will reinforce its role as the administrative, educational, and cultural center.

This will create a healthy regional model, where each city fulfills its function rather than competing chaotically.

Investment Efficiency: Less Speculation, More Strategy

In five years, the market will become less speculative and more institutional.
- Yields will nominally decrease, but will become more stable.
- Investors will focus on cash-flow, management, and liquidity, rather than rapid price growth.
- The best properties will belong to long-term owners, not resellers.
This will lead to increased trust from European and Middle Eastern capital.

Social Factor: Who Will Live in Cyprus

A very important point is the quality of resident demand.

In five years, the main roles will be played by:
- entrepreneurs and business owners;
- top management of international companies;
- professional investors;
- families choosing Cyprus as their permanent country of residence.
This changes the requirements for real estate: fewer compromises, more attention to environment, service, education, and safety.

Main Conclusion

In five years, the Cyprus real estate market will become:
- more expensive, but more predictable;
- less mass, but higher quality;
- less speculative, but more investment-mature.
And if you need personal consulting and a forecast on the prospects for a specific real estate project in a given location or for personal investments, my professional team is always in touch!