Property in Cyprus: what to know and where to buy in 2020
Property prices in Cyprus have been falling since 2008, but things are finally looking up now that the economy recovered from the banking crisis of 2012−2013. Property prices in Cyprus declined until the end of 2016.
Price dynamics
Residential property prices fell 30% since the 2008 crisis but in 2017, an upward trend emerged. It has been complimented by a surge in residential real estate development: last February, the amount of new houses put on the market increased by 22.4% year-on-year. At the moment, there is a stable growth in construction volumes.
Q3 2018 | Q4 2018 | Q1 2019 | Q2 2019 | |
House Price Index | 76 | 76.7 | 77.2 | 77.6 |
Quarterly price change, % | 0.66 | 0.92 | 0.65 | 0.52 |
Annual price change, % | 2.01 | 2.54 | 2.66 | 2.78 |
Renewed development activity has been followed by an increase in transactions: property sales grew by 11.1% in Q1 2019, compared to the same period in 2018. Moreover, according to a report by the Central Bank of Cyprus, the number of property transactions to foreign buyers increased by 16.7% during the same period, while local activity only gained 5.8%.
Locations and prices
The average price for a two-bedroom flat in Cyprus runs at €176,000, according to data by the Zyprus portal, but prices vary depending on the region. In the most expensive areas of the island, prices are slightly higher.
City | Price, EUR |
Larnaca | 189,000 |
Limassol | 290,000 |
Nicosia | 158,000 |
Paphos | 135,000 |
Paralimni | 108,000 |
Average | 176,000 |
The most popular places with buyers are Limassol, Paphos, Larnaca, Paralimni and Nicosia.
Limassol is regarded as the second capital of the Republic. It's a hive of activity with the most expensive flats and a wide choice of prime property.
Paphos is famous for its landscape: many houses are located on hills with
breath-taking views over the sea. It is perfect for those who want a quiet and relaxing lifestyle.Larnaca has beautiful beaches and an international airport that is a good place for buyers with medium budgets. Not far from here is the Paralimni resort, which has the cheapest property on the island.
Nicosia, the capital, is not popular with foreign holiday buyers because it is far from the sea, but business visitors are a lot more active on the property market here.
City | Price, EUR |
Larnaca | 433,000 |
Limassol | 590,000 |
Nicosia | 463,000 |
Paphos | 599,000 |
Paralimni | 344,000 |
Average | 485,800 |
Mortgages and financing
Foreign citizens don’t face any obstacles when applying for a mortgage in Cyprus. The average interest rate is currently 2.10%, compared to 2.20% in 2019. By leaving the loan terms unaltered and dropping the interest rate, the Central Bank of Cyprus hopes to stimulate lending in order to encourage demand for residential property.
Banks in Cyprus usually grant mortgages for
Rental market
Rental rates are still declining in Cyprus. By Q2 2019, the average rate for apartments was 16.4% more expensive than the previous year and house rentals reached 14.4%. Currently it costs about €450-500 per month on average.
City | Rental rate, EUR |
Larnaca | 430 |
Limassol | 460 |
Nicosia | 600 |
Paphos | 460 |
Average | 487.5 |
House rentals cost about €600-650 per month on average for a medium quality 250 sq m townhouse.
City | Rental rate, EUR |
Larnaca | 520 |
Limassol | 600 |
Nicosia | 700 |
Paphos | 600 |
Average | 605 |
The simultaneous rise in prices and rental rates has stabilised yields, which remain much better for flats (4.8%) than for homes (2.5%).
Future trends and influencers
Indicator | 2019 | 2020 (forecast) | 2021 (forecast) |
GDP growth, annual change, % | 3.2 | -7.4 | 6.1 |
Inflation rate annual change, % | 0.5 | -0.2 | 1 |
Unemployment rate, % | 7.1 | 8.6 | 7.5 |
The revival has largely benefited from local and
Ivan Chepizhko, Tranio
We will send you a content digest not more than once a week
Find for sale in Barcelona, Spain
Algarve, Portugal real estate prices
Madeira, Portugal real estate prices
Cyprus Property Market in February: Positive Outlook for the Year 2024
How to buy and sell a business in Cyprus for non-residents?
Languages in Cyprus: a tapestry of cultural and linguistic diversity
How to take pets to Cyprus: a comprehensive guide
Dubai's Property Market Report: Strong Growth and Sustained Positive Trend in February 2024