Buying A Waterfront Property In Cyprus: The Complete Guide

Published on October 30, 2025 and written by Cyril Jarnias

Cyprus, the jewel of the Eastern Mediterranean, is attracting more and more real estate investors seeking sunshine, sandy beaches, and a relaxed lifestyle. With its year-round sunny climate, crystal-clear waters, and rich historical heritage, the island offers an idyllic setting for acquiring a second home or making a promising rental investment. Whether you dream of a villa with a sea view or an apartment right on the water, this guide reveals the keys to realizing your real estate project on the Cypriot shores.

Cypriot Coastal Gems: Where to Invest for Maximum Potential?

Cyprus is full of attractive coastal destinations, each with its own charm and particular strengths. Here is an overview of the most sought-after areas for seaside real estate investment:

Limassol: The Cosmopolitan Jewel of the South Coast

Cyprus’s second city, Limassol, stands out as the premier destination for high-end investors. Its rapidly transforming waterfront hosts luxurious real estate projects, exemplified by the spectacular Limassol Marina. Square meter prices there reach peaks, averaging 4,000 to 8,000 euros for premium frontline properties.

Paphos: The Charm of Authenticity

A UNESCO World Heritage site, Paphos captivates with its more intimate atmosphere and historical character. The real estate market is dynamic, driven by strong foreign demand. Expect to pay between 2,500 and 5,000 euros per square meter for a sea-view apartment in sought-after neighborhoods like Kato Paphos or Coral Bay.

Ayia Napa: The Thriving Beach Paradise

Long confined to its image as a party destination, Ayia Napa is undergoing a spectacular upscale transformation. The construction of the new marina and the development of high-end residential complexes are attracting a wealthy clientele. Prices range between 3,000 and 6,000 euros per square meter for upscale waterfront properties.

Larnaca: The Affordable Alternative in Full Development

Cheaper than its neighbors, Larnaca offers excellent value for money for investors. The city is experiencing a revival with ambitious projects like the transformation of its waterfront. Square meter prices for new sea-view apartments range from 2,000 to 4,000 euros.

Navigating Cypriot Real Estate Waters: A Guide to a Successful Purchase

Buying property in Cyprus requires a good understanding of the local market specifics. Here are the key steps to successfully carry out your project:

1. Define Your Budget and Secure Financing

Before you begin, establish a precise budget taking into account all additional costs (taxes, notary fees, etc.). If you need a loan, be aware that Cypriot banks offer financing solutions to non-residents with competitive interest rates. However, the required personal contribution is generally higher than in other European countries, often around 30-40% of the purchase price.

2. Choose a Reliable Real Estate Agent

Use a licensed real estate agent, registered with the Real Estate Registration Council. These professionals know the local market perfectly and can guide you through all stages of your purchase. They will notably help you negotiate the price and verify the legal compliance of the property.

3. Conduct Legal Checks

Before signing any contract, it is crucial to have due diligence performed by an independent lawyer. They will check the title deed, the absence of charges or mortgages on the property, and ensure that all building permits are in order.

4. Understand the Purchase Process

• Signing a reservation contract and paying a deposit (usually 1% of the sale price)
• Signing the preliminary sale contract and paying a more substantial deposit (10-30% of the price)
• Obtaining approval from the Council of Ministers for non-Europeans (this step is not necessary for EU nationals)
• Signing the final deed of sale and paying the balance

5. Anticipate Additional Costs

• Transfer fees: 3-8% of the purchase price depending on the property value
• Notary fees: approximately 1% of the purchase price
• Lawyer fees: 1-2% of the purchase price
• Real estate agent fees: generally 3-5% of the purchase price, borne by the seller

Diving into Investment: The Strengths of the Cypriot Real Estate Market

Investing in seaside real estate in Cyprus offers numerous advantages, both financially and in terms of quality of life.

A Dynamic and Resilient Market

Despite global economic turbulence, the Cypriot real estate market shows robust health. According to data from the Cyprus Department of Lands and Surveys, real estate sales increased by 15% in 2024 compared to the previous year. This growth is particularly marked in the seaside property segment, which benefits from sustained demand from foreign buyers.

Attractive Rental Yields

The island attracts millions of tourists each year, offering interesting potential for seasonal rentals. Well-located seaside properties can generate rental yields ranging from 4% to 8% per year. Furthermore, the tourist season in Cyprus extends over a large part of the year, ensuring rental income over a longer period than in other Mediterranean destinations.

An Advantageous Tax Framework

• A reduced tax rate on rental income (20% above 19,500 euros)
• Full exemption from capital gains tax for properties held for more than 20 years
• No inheritance tax

Exceptional Quality of Life

Beyond financial aspects, investing in Cyprus also means securing a privileged living environment. The island enjoys over 300 days of sunshine per year, some of Europe’s cleanest beaches, and renowned cuisine. Safety, quality infrastructure, and an efficient healthcare system also make it a top choice for foreign retirees.

Navigating the Pitfalls: Points of Vigilance for Your Investment

Although the Cypriot real estate market is generally attractive, it is important to remain vigilant about certain aspects to secure your investment.

The Issue of Title Deeds

Cyprus has experienced past problems related to title deeds, particularly in the Turkish-occupied north of the island. Although the situation has improved considerably, it is crucial to have the title deed meticulously checked by a specialized lawyer before any purchase.

Building Permits

Some properties, especially older ones, may have been built or modified without the necessary permits. Ensure the property has all required permits to avoid future complications.

Market Fluctuation

Like any real estate market, Cyprus’s can experience fluctuations. Prices have risen sharply in recent years, especially in sought-after coastal areas. It is important to assess long-term growth potential and not get carried away by speculation.

Rental Management

If you plan to rent out your property, consider the constraints of remote management. It may be wise to use a local agency to manage the rental and maintenance of your property.

Environmental Impact

Intensive real estate development on certain parts of the coastline raises environmental questions. Be mindful of the ecological impact of projects and favor those that follow a sustainable development approach.

Setting Course for the Future: Prospects of the Cypriot Real Estate Market

The Cypriot real estate market, particularly in coastal areas, shows promising prospects for the coming years.

Major Projects Underway

• The development of the new Larnaca port and the renovation of its waterfront
• The expansion of the Ayia Napa marina
• The construction of the City of Dreams Mediterranean, Europe’s largest casino-resort, near Limassol

These projects are expected to attract new investors and stimulate the local economy, with a positive impact on the real estate market.

Sustained International Demand

Cyprus continues to attract a diverse international clientele, drawn by its climate, quality of life, and tax advantages. According to data from the Department of Lands and Surveys, foreign buyers accounted for 45% of real estate transactions in 2024, with a high proportion of Russian, Chinese, and Middle Eastern investors.

A Maturing Market

The Cypriot real estate market is gaining maturity, with strengthened regulation and increased professionalization of the sector. This evolution should help secure investments and attract a more demanding clientele.

Challenges to Address

• The need to diversify the economy to reduce dependence on the real estate sector
• The sustainable management of coastal development to preserve the island’s attractiveness
• Adapting to new buyer expectations regarding sustainability and technology