Which cities or regions have seen the highest growth in property values recently?
In 2025, Cyprus’ residential property market is highly active, with some cities seeing particularly strong price growth.
Limassol continues to stand out as one of the top-performing locations. Although property sales fell slightly by 4.9% compared to 2023, the city still recorded the highest number of transactions nationwide, with 2,953 properties sold during the first seven months of 2024.
Price growth has been especially strong in the apartment sector, with values rising by 13.94% in the year to Q2 2023. House prices also increased solidly, climbing 6.51% over the same period. The rental market has shown even sharper growth, with apartment rents up 25.3% and house rents up 24% year-on-year in Q3 2023.
Demand for premium homes remains a key driver of the market, with high-end properties accounting for 52% of all residential sales in the second quarter of 2024, further reinforcing Limassol’s position as a leading real estate hotspot.
“The steady stream of international investment highlights Cyprus’s strong reputation and attractiveness as a sought-after real estate market.”
Are there any government incentives or tax benefits for residential property buyers in this country?
Absolutely, Cyprus in 2025 is a hotspot for residential property buyers, thanks to a range of government incentives and tax benefits designed to make investing in real estate more attractive. If you're considering diving into this market, you'll find several programs tailored to different needs and demographics.
Government Incentives & Tax Benefits
Cyprus offers attractive government support programs designed to encourage residential property investment.
First-Time Buyer Support
Financial subsidies are available for young families purchasing or building their first home, reducing upfront costs significantly.
Renovate & Rent Scheme
Grants of €15,000–€35,000 are available to renovate vacant properties, with full income tax exemption on affordable rental income under the scheme.
Build-to-Rent Incentives
Developers benefit from increased building density allowances, supporting the delivery of affordable housing and expanding rental supply.
Tax Advantages
- Capital Gains Tax (20%) includes key exemptions for smaller profits and primary residences.
- Relatively low 0.4% levy on property disposals.
- Rental income exemptions available under approved affordable housing schemes.
Market Strength & Growth
- Foreign investment remains strong, with nearly 7,000 properties purchased by international buyers in 2023 (+16% year-on-year).
- Property values continue to rise:
- Apartments: +12%
- Houses: +6.2%
- Long-term projections indicate continued price growth, driven by sustained international demand.
