Maximizing Rental Yields in Cyprus in 2025

Why Invest in Cyprus Real Estate?

Cyprus stands out as one of Europe's greenest and most vibrant islands, offering exceptional weather, a relaxed lifestyle, and a prime location at the intersection of Europe, Asia, and Africa.

With steady growth in real estate values, attractive rental yields, and favorable tax incentives, Cyprus continues to rank as one of Europe’s most rewarding real estate markets in 2025.

As a leading property developer and trusted investment partner, Square One is at the forefront of this thriving market, offering strategic opportunities for investors to maximize returns in this dynamic environment.

Cyprus Real Estate Market Key Facts

Property Prices

As of January 2025:

• Apartments: Median price €510,000 (€4,033/sqm).
• Houses/Villas: Median price €732,500 (€3,349/sqm).

Regional Insights:

• Limassol: €660,000 (most expensive district).
• Larnaca: €310,500 (most affordable).
• Paphos: €567,000.
• Nicosia: €350,000.
• Famagusta: €455,000.

Why Median Price Matters: The median price represents the middle value in a sorted list of prices, making it less affected by extreme highs or lows and a more reliable indicator of the typical market value.

Housing Market Trends

The Cyprus property market has consistently grown over the years:

• In 2022, the Residential Property Price Index (RPPI) recorded annual gains of 7.4%, reflecting strong demand and limited supply.
• This trend continued into 2023 and the first quarter of 2024, with significant increases in apartment prices and moderate house price growth.

(Sources: RPPI by Central Bank of Cyprus, Statistics by Department of Lands and Surveys)

Rental Yields in Cyprus

Cyprus offers competitive rental yields compared to other European markets:

• Limassol: 7% (highest yield).
• Nicosia: 5%.
• Larnaca and Paphos: 4%.

Overall Average Yields:

• Apartments: 5.40%.
• Houses: 3.02%.
• Offices: 5.64%.

(Sources: RICS Residential Property Price Index 2024 Q3)

Why 2025 is the Best Year to Invest

1. Strategic Location and Accessibility: Cyprus serves as a gateway to Europe, Asia, and Africa, making it an attractive investment hub.
2. Positive Economic Growth: With a GDP growth rate of 2.6% in 2023, Cyprus provides a stable environment for property investment.
3. Attractive Tax Benefits:
4. Permanent Residency Opportunities: Purchasing property worth €300,000 or more qualifies investors for fast-tracked permanent residency, with the potential for Cypriot citizenship after eight years.

How Square One Helps Maximize Your Investments

At Square One, we are committed to ensuring our investors achieve the highest returns on their real estate investments.

In Limassol, most developers offer two-bedroom apartments that average 85 sqm and cost around €400,000. But for investors, this extra space doesn’t equate to higher rental income. SQONE takes a different approach, offering two-bedroom apartments at a more efficient 65 sqm, with the same rental potential.

Standard Limassol 2-Bedroom Apartment (85 sqm):  

• Cost: €400,000  
• Rent: €2,200/month  
• Rental Yield: 6.6%

SQONE Optimized 2-Bedroom Apartment (65 sqm):  

• Cost: €325,000  
• Rent: €2,000/month  
• Rental Yield: 7.4%

By reducing unnecessary space, SQONE saves investors €100,000 upfront, while still securing competitive rents. It’s a smart, efficient solution that maximizes your return on investment.

For a more detailed explanation, read this article:

https://squareone.com.cy/news/buy-to-let-guide-limassol-benefits-of-investing-with-sqone

Additional Information for Investors

Buying Property as a Foreign Investor

• EU Nationals: Can buy property without restrictions.
• Third-Country Nationals (TCNs): Must obtain permission from the Council of Ministers, a straightforward process.
• Proxy Purchases: Investors can buy property remotely by appointing a local lawyer or agent to act on their behalf.

Tax Benefits for Property Owners

• No immovable property tax or inheritance tax.
• Low corporate tax rate (12.5%).
• Tax-free dividends, interest, and capital gains (with some exceptions).

Why Choose Square One?

With €40 million in sales and 151 units sold in 2024 alone, Square One is Cyprus's fastest-growing real estate developer.

What Sets Us Apart:

• Proven Track Record: Our projects consistently deliver high rental yields and capital appreciation.
• Turnkey Solutions: We handle everything from acquisition to management.
• Commitment to Excellence: Our properties are designed with investors and tenants in mind, ensuring long-term value and appeal.
• Expanding Portfolio: We’ve successfully launched 27 projects across Limassol and Paphos, including premium apartments, luxury penthouses, and high-yield investment properties.
• Comprehensive Services: From selection to property management, our turnkey solutions make the investment process seamless.
• Strategic Locations: Our developments are situated in high-demand areas near key amenities, ensuring consistent rental income.
• Rental Guarantees: Through our partnership with Moving Doors, investors enjoy up to a 7% rental guarantee.

For a detailed look at our milestones and achievements in 2024, explore:

• Square One’s 2024 Review: Leading Cyprus Real Estate Developer

For market trends and insights, read:

• Cyprus Real Estate Market Overview 2024

What to take away from all of this?

Cyprus is one of Europe’s most promising real estate markets, offering high rental yields, favorable tax benefits, and residency opportunities. With Square One, you can invest confidently and maximize your returns in 2025.

Contact us today or visit Square One to explore our portfolio and start your journey toward profitable property investment.

Article by: Angelo Coralini - Marketing Manager