Authored by the expert who managed and guided the team behind the Cyprus Property Pack
Yes, the analysis of Nicosia's property market is included in our pack
Property prices in Nicosia are experiencing moderate growth as we reach mid-2025, though at a slower pace than Cyprus's coastal cities.
As of June 2025, the average price per square meter for residential properties in Nicosia stands at approximately €2,150, with new developments in premium neighborhoods like Engomi and Strovolos commanding up to €2,800 per square meter. The capital's property market continues to attract both local buyers and a growing share of foreign investors, now representing 44% of all transactions.
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Nicosia's property prices are rising at 2.7% annually (inflation-adjusted), the slowest growth rate among Cyprus's major cities.
Apartment prices increased by 4.3% year-on-year in 2024, while house prices rose by 4.8%, with central neighborhoods seeing the strongest momentum.
| Property Type | Average Price (June 2025) | Price per m² | YoY Change |
|---|---|---|---|
| Apartments (New) | €190,000 | €2,500-3,000 | +4.3% |
| Houses (New) | €314,500 | €2,200 | +4.8% |
| Overall Median | €350,000 | €2,150 | +2.7% |
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.
What are property prices in Nicosia as of June 2025?
Property prices in Nicosia have reached €2,150 per square meter for residential properties as we enter mid-2025.
The median price for apartments in Nicosia currently stands at €190,000, while new houses command a median price of €314,500. For buyers looking at premium neighborhoods, prices in central areas like Engomi and Strovolos reach up to €2,800 per square meter, representing the upper end of the market.
Overall, the median housing price in Nicosia sits at approximately €350,000, making it significantly more affordable than coastal cities like Limassol and Paphos. City center apartments average €2,350 per square meter, while properties outside the city center average €1,850 per square meter.
The market shows healthy transaction volumes, with 1,194 apartments and 161 houses sold in 2024, totaling €236.9 million in apartment sales and €49.8 million in house sales.
These price levels reflect Nicosia's position as Cyprus's most affordable major city, attracting both local buyers and an increasing number of foreign investors seeking value in the capital's stable market.
How much have property prices increased in Nicosia recently?
Property prices in Nicosia have increased modestly, with apartment prices rising 4.3% and house prices climbing 4.8% year-on-year in 2024.
The overall annual growth rate for residential prices in Nicosia was 2.7% (2.0% inflation-adjusted) in 2024, making it the slowest-growing district among Cyprus's major cities. This contrasts sharply with Paphos, which saw 11.8% growth, and Famagusta at 11.1%.
Quarter-on-quarter data shows even more moderate growth, with apartment prices in Nicosia increasing by just 0.6% in Q2 2024. Some sources indicate a brief correction in Q4 2024, with a 0.4% annual decline, suggesting the market experienced some stagnation after sustained growth.
Despite the slower pace compared to coastal cities, Nicosia's property market has shown resilience, with transaction volumes increasing by 4.2% annually - the only district in Cyprus to record an upward trend in property transactions during 2024.
It's something we develop in our Cyprus property pack.
Which Nicosia neighborhoods are seeing the biggest price increases?
Strovolos, Engomi, and Aglantzias lead Nicosia's property price growth, driven by infrastructure upgrades and high demand from professionals and expats.
These central neighborhoods are experiencing stronger price momentum due to their proximity to business districts, universities, and modern amenities. Platy Aglantzias has seen apartment values increase by 4.2% and house prices by 4.8% over the past two years, reflecting the area's growing appeal.
Ayioi Omologites and Lykavitos are also hot spots, with luxury developments driving demand. In Lykavitos, apartment prices jumped 4.16% in 2023, as high-end projects attract affluent buyers. The area also saw a notable €29.3 million office sale in March 2025, highlighting its commercial appeal.
Dasoupolis benefits from modern infrastructure and improved highway access, making it increasingly attractive to both residents and investors. Government investments in road networks have reduced congestion, enhancing the area's livability.
Meanwhile, neighborhoods like Lakatamia are drawing young families with new residential projects priced around €288,000 + VAT, showing strong demand for suburban living with good connectivity to the city center.
What property types are experiencing the highest price growth?
Apartments are outpacing houses in Nicosia's property market, with new luxury developments and city center units seeing the strongest appreciation.
In 2024, apartment prices increased by 4.3% annually, demonstrating stronger momentum than the overall market. Luxury apartments and new builds in prime locations command premium prices, reaching €2,800-3,200 per square meter in neighborhoods like Engomi and Strovolos.
Modern, energy-efficient apartments with smart home features are particularly sought after, catering to young professionals and tech workers. These properties often include amenities like gym facilities, parking spaces, and communal areas, justifying their higher price points.
Properties with outdoor spaces - terraces, balconies, or gardens - have become highly desirable post-pandemic, driving up values for apartments that offer these features. In Nicosia's dense urban environment, such amenities command significant premiums.
While houses also saw respectable growth at 4.8%, the apartment segment remains the main driver of price appreciation, particularly in the €180,000-€400,000 bracket for 1-3 bedroom units that appeal to both investors and owner-occupiers.
How do current property prices compare to 5 years ago?
Nicosia's property prices have increased significantly over the past five years, with average prices per square meter rising from below €2,000 in 2020 to over €2,150-2,500 in 2025.
In 2020, the market was still recovering from earlier challenges, with house prices rising by just 0.5-1% and apartment prices by 3.4%. The transformation since then has been remarkable - by 2024, house prices were up 4.8% year-on-year and apartment prices increased 4.3%.
Transaction volumes have also surged, with Nicosia leading Cyprus in sales volume in 2024. The city recorded a 14% surge in sales filings during the year, with a notable peak in June, highlighting the strong demand for properties.
Perhaps most significantly, the share of foreign investors in Nicosia has grown dramatically from about 5-7% in 2015 to 44% of transactions involving foreign buyers in 2025. This international interest has helped drive prices upward and diversify the buyer base.
The median listing price for homes has reached €350,000, representing substantial appreciation from 2020 levels and confirming Nicosia's emergence as a more mature property market.
What are the property price forecasts for Nicosia in 2026?
Property prices in Nicosia are expected to rise between 3% and 7% in 2025-2026, driven by continued demand and limited supply in central locations.
Most forecasts suggest moderate but steady price growth will continue, supported by limited land availability, ongoing urbanization, and demand from both local and foreign professionals. The mid-range property market is expected to remain stable as supply and demand balance out.
Affordable housing prices are set to rise more sharply as demand outstrips supply, especially in central locations. With 67% of Nicosia's population now living in urban areas and urbanization growing at 0.76% annually, pressure on housing stock will intensify.
Expert consensus from the Central Bank of Cyprus, RICS, PWC Cyprus, and Landbank Analytics points to Nicosia's market being "fundamentals-driven," with less volatility than coastal cities. This suggests price growth will be steady rather than spectacular.
It's something we develop in our Cyprus property pack.
What are the current mortgage rates for property buyers?
As of June 2025, mortgage rates in Cyprus average 4.56%, with most banks offering rates between 4.95% and 5.25% for residential properties.
The Central Bank of Cyprus reports that rates have stabilized after increasing from 2.38% to 4.14% during the ECB's rate hike cycle from 2022-2024. Despite higher borrowing costs, Nicosia's property market has remained resilient due to strong underlying demand.
Major banks offer varying terms - the Bank of Cyprus finances up to 80% of property value with fixed rates for 3.5 or 10 years, while Hellenic Bank provides loans up to €1 million with maximum 30-year repayment periods. For a €100,000 mortgage over 20 years, borrowers can expect to pay around 4.9% interest.
The composite cost-of-borrowing for house purchases in the eurozone stabilized at around 3.5-3.9% in early 2025, though Cyprus rates remain slightly higher than the European average.
Foreign buyers face additional restrictions, as mortgages are generally only available to permanent residents. Non-EU citizens looking to obtain residency through property investment must purchase without mortgage financing.
How has foreign investment impacted Nicosia property prices?
Foreign investment has transformed Nicosia's property market, with international buyers now representing 44% of all transactions, up from just 5-7% a decade ago.
This dramatic increase in foreign participation has particularly boosted demand for modern apartments and premium rentals in central neighborhoods. Digital nomads, expats, and Golden Visa applicants are increasingly targeting Nicosia for its affordability compared to coastal cities, stable rental yields, and urban amenities.
The influx of international buyers has pushed prices upward, especially in the €180,000-€400,000 bracket that appeals to investors seeking Cyprus residency through the €300,000 investment threshold. These buyers often purchase new developments, driving demand for luxury apartments in areas like Engomi and Strovolos.
Cyprus's favorable tax system, with corporate tax at 12.5% and various incentives for foreign residents, continues to attract international professionals and businesses. Over 846 startups are now based in Cyprus, with Nicosia hosting 295 of them, creating sustained demand from tech workers and entrepreneurs.
While this foreign investment has supported price growth, Nicosia's market remains more balanced than Limassol or Paphos, as 56% of buyers are still local, providing stability and reducing volatility.
We made this infographic to show you how property prices in Cyprus compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It's an easy way to spot where you might get the best value for your money. We hope you like it.
Which areas offer the best value for property investment?
Aglantzia and Latsia offer the best value for property investment in Nicosia, with lower entry prices and strong potential for future appreciation.
Aglantzia has attracted first-time buyers and savvy investors with property prices lower than other parts of Nicosia. The area is experiencing increased transaction volumes, and urban development plans suggest significant potential for future infrastructure improvements and housing projects.
Lakatamia represents excellent value for families, with new residential projects priced around €288,000 + VAT. The area's suburban charm, combined with good connectivity to the city center, makes it increasingly popular among young families seeking affordable housing options.
For rental investors, areas near the University of Cyprus and other educational institutions offer strong yields. With rental rates averaging €800 per month for two-bedroom apartments and gross rental yields at 4.78% in Nicosia, these neighborhoods provide steady income potential.
Agios Dometios continues to attract rental investments due to ongoing urbanization and population growth. The area benefits from modern infrastructure while maintaining more affordable price points than premium neighborhoods.
Investors should note that while these areas offer better value, they may experience slower appreciation than premium neighborhoods but provide more stable, long-term growth potential.
How does Nicosia compare to other Cyprus cities in June 2025?
Nicosia remains Cyprus's most affordable major city for property, with new apartments at €190,000 compared to €426,000 in Limassol and €312,000 in Paphos.
Price comparisons across Cyprus reveal significant disparities:
| City | Avg Apartment Price | Avg House Price | Price per m² | 2024 Growth Rate |
|---|---|---|---|---|
| Nicosia | €190,000 | €314,500 | €2,150 | +2.7% |
| Limassol | €426,000 | €557,000 | €4,200 | +6.5% |
| Larnaca | €196,000 | €340,000 | €2,300 | +5.8% |
| Paphos | €312,000 | €590,000 | €3,500 | +11.8% |
| Famagusta | €222,000 | €367,500 | €2,400 | +11.1% |
While Nicosia shows the slowest growth rate, this reflects its maturity as a domestic market with 83% local demand. Limassol and Paphos command premium prices due to their coastal locations and higher proportion of luxury developments targeting foreign buyers. Despite slower growth, Nicosia offers the best value proposition for buyers seeking affordable entry into Cyprus's property market.
What factors will drive Nicosia property prices in the next decade?
Limited land availability, continued urbanization, and Nicosia's evolution into a business and educational hub will sustain property values over the next 10-20 years.
Short to medium-term drivers include the city's growing startup ecosystem, with 295 registered startups making it Cyprus's second-largest tech hub. As more international companies establish offices in Nicosia, demand for both residential and commercial properties will intensify.
The education sector remains a key factor, with prestigious institutions like the University of Nicosia, European University, and University of Cyprus attracting students and academics. This creates consistent demand for rental properties and supports steady price growth in surrounding neighborhoods.
Infrastructure improvements, including upgraded road networks and public transportation plans, will enhance connectivity and make peripheral areas more attractive. Government investments in urban development are already showing results in neighborhoods like Dasoupolis.
Long-term sustainability trends favor Nicosia's market. The focus on energy-efficient buildings and smart city initiatives aligns with global environmental priorities. Properties meeting ESG standards will likely command premium prices as regulations tighten.
However, demographic shifts could moderate growth - Cyprus's aging population may eventually reduce housing demand unless offset by continued foreign investment and immigration.
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Conclusion
Yes, property prices in Nicosia are going up, but at a moderate pace compared to other Cypriot cities. With annual growth of 2.7% and strong fundamentals supporting the market, the capital offers stable appreciation rather than spectacular gains. For investors and homebuyers seeking value in Cyprus's property market, Nicosia presents an attractive opportunity with lower entry prices and steady growth potential.
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.
Property prices in Nicosia continue their upward trajectory in 2025, though growth remains more measured than in coastal hotspots. The capital's unique position as Cyprus's business and educational center, combined with increasing foreign investment, suggests sustained price appreciation ahead.
For those considering investment in Nicosia's property market, the combination of relative affordability, stable growth, and improving infrastructure makes it an compelling choice. As the city evolves and modernizes while maintaining its authentic character, property values are likely to reflect this ongoing transformation.
Sources
- The Luxury Playbook - Nicosia Real Estate Market Analysis
- DOM.com.cy - Nicosia Market Analysis
- Global Property Guide - Cyprus Price History
- Central Bank of Cyprus - Residential Property Price Index Q2 2024
- DOM.com.cy - Nicosia Property Market 10-Year Analysis
- La Maison Estates - Cyprus Housing Market 2025
- Cyprus Mail - Regional Property Price Comparison
- Investropa - Nicosia Area Analysis
- Investropa - Nicosia Real Estate Trends
- Investropa - Nicosia Real Estate Forecasts