As we promised in our previous piece, let’s explore what types of real estate and, most importantly, which areas in Cyprus can provide the highest ROI (Return on Investment) 📈

We’ve already mentioned apartments as the most attractive type of investment; apartments within walking distance of the sea are especially popular. In this regard, the cities of Limassol, Larnaca, and Paphos are particularly popular. We will delve into Paphos in detail in an upcoming webinar, the announcement of which will be coming very soon.

One-bedroom apartments and studios are particularly profitable due to their low purchase cost, high demand from tourists, and their manageable size.
The next less obvious but equally attractive option is villas. There is always a demand for luxury, especially since villas are often rented out to large families or groups. The essential criteria for high demand for your property are private grounds and a pool. Villas are most commonly rented in Limassol, Paphos, and Ayia Napa.

In addition to residential properties, commercial spaces also perform well. Business centers are popular among immigrants with entrepreneurial talents who are attracted to the island by the climate and tax benefits. Cyprus sees more than 1,000 new companies established annually, with Limassol and Nicosia being the most sought-after cities for office spaces.

Speaking of specific return percentages, rental properties can yield you 7% to 10% per year, whereas in European countries, this figure is around 2% to 3%, and in the overheated Dubai market, no more than 6%. Furthermore, simply reselling properties on the island purchased during the construction phase can provide you with 15% to 20% of the total investment amount.