Only a short flight away from most European countries, Cyprus offers unique real estate investment opportunities. In recent years, Nexton, one of the leading real estate companies in Cyprus, reports a significant increase in interest from international investors.
“The trend has been building over recent years,” explains Assaf Tessler, partner and Operations Manager at Nexton. “We’ve seen significant acceleration as more international investors recognize Cyprus’s potential. With a portfolio of over a hundred apartments in Limassol and 13 years of market experience, we’re witnessing a meaningful shift in investor profiles.”
This trend receives substantial support from the Cypriot government. Official data shows that in 2024 alone, approximately 10,000 workers from around the world relocated to Cyprus, along with their families. Government policy, including a low corporate tax rate of 12.5% and dividend tax of nearly 0%, makes the island particularly attractive for capital holders transferring entire tech companies to Cyprus with their employees and families.
According to Tessler, demand is significantly higher than in other areas of Cyprus, particularly in Limassol, which has become Cyprus’s tech hub. “Unlike other cities, Limassol offers substantial employment opportunities, especially in tech. Around 500 technology companies have already chosen to establish their centers here, ensuring stable demand for rental apartments.”
Additionally, Cyprus enjoys significant growth in the tourism industry, with over 3.8 million tourists visiting the island in 2024. “The thriving tourism creates substantial demand for both hotel rooms and short-term rentals through platforms like Airbnb and Booking,” Tessler explains. “This generates higher income streams for apartment owners engaged in short-term rentals.”
Three Types of Investors
Tessler’s analysis reveals an interesting picture of three main investor types. The first group, comprising about 35% of buyers, consists of professional investors – typically experienced real estate professionals seeking to diversify their investment portfolios who recognize significant growth potential in Cyprus.
The second and largest group, about 60% of buyers, comprises investors looking to combine investment with residence – they purchase apartments that will serve them for vacations while generating income from short-term rentals the rest of the time.
The third group, about 5% of buyers, includes families planning a complete move to Cyprus, whether for quality of life reasons, lower cost of living, or seeking peace and stability.
Strategic Focus on High-Demand Areas
“At Nexton, we focus on high-demand areas, primarily in Limassol, and build compact, efficient apartments designed from the outset to provide the highest returns for real estate investors purchasing through us,” Tessler explains. “For example, we design two-bedroom apartments of 65 sqm instead of 85 sqm, so our property prices are lower compared to competitors – after all, you pay per square meter – but the rental yields they generate are higher.”
Growing International Community
Thousands of international professionals already live permanently in Cyprus, with many more holding apartments on the island while maintaining businesses or jobs in their home countries. “We see this trend only strengthening,” Tessler notes. “Investors understand that beyond attractive prices, Cyprus offers economic stability, high quality of life, and excellent connectivity to major regional markets.”
The Importance of Local Market Knowledge
Nexton emphasizes the importance of choosing the right property and deep understanding of the local market. “With 13 years of experience and a portfolio of over 100 apartments, we understand the local market demands very well,” Tessler stresses. “In cities like Paphos or Larnaca, you can find cheaper properties, but the lack of employment opportunities creates seasonal and unstable rental demand. Real estate investors purchasing in these areas take significant additional risk that they’re mostly unaware of – that their property will stand empty for extended periods. At Nexton, we focus on building properties that match real tenant market needs and create stable, long-term value.”
