Yes, the analysis of Nicosia's property market is included in our pack
The question of 'the best neighborhood to buy a property in Nicosia' does not have a one-size-fits-all answer.
Some of you are buying to live there, while others want to make the best investment possible. Individual preferences and circumstances matter.
That’s why the article below is covering every intent.
At Investropa, when we write a blog post or when we update our our property pack for Cyprus, we want to bring solutions and cover different aims in a clear and organized way.
Enjoy the read, and please remember that we are not financial or investment experts. This article is for informational purposes only.
To improve the readability and user-friendliness of this article, we will categorize neighborhoods in Nicosia into various groups, including budget-friendly options, emerging hotspots, and areas with high rental demand, among others. Consequently, some neighborhoods may appear in multiple categories and be mentioned several times throughout the article.
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How is the real estate market in Nicosia?
The real estate market in Nicosia, the capital of Cyprus, is thriving and dynamic, attracting a diverse range of buyers, including a significant number of foreigners.
This interest is driven by several unique strengths and characteristics of the city, as well as future potential for property value appreciation.
Nicosia is unique in that it's the last divided capital in the world, offering a rich blend of Greek and Turkish cultures. This cultural tapestry isn't found anywhere else and adds a distinctive charm to the city.
The mix of ancient and modern influences is evident in its architecture and urban layout, making properties in Nicosia not just living spaces but also pieces of history and culture.
The city's real estate market is notably dynamic. For instance, there has been a significant increase in construction and development projects in recent years, indicating a healthy demand and supply balance. This is a key data point underscoring the market's vibrancy.
One particularly unique aspect of Nicosia's properties is their architectural diversity, which blends traditional Mediterranean styles with modern design. This fusion creates living spaces that are both culturally rich and contemporarily comfortable – a combination that's rare and highly sought after.
People are drawn to buy in Nicosia for several reasons.
The city boasts a high quality of life with a relatively low cost of living compared to other European capitals. This is especially appealing to retirees and expatriates seeking a comfortable lifestyle without the exorbitant expense.
Additionally, the city's safe environment, coupled with its rich cultural heritage and growing economy, makes it an attractive destination for families and young professionals alike.
Foreign interest in Nicosia’s real estate market is particularly high. This is largely due to Cyprus' advantageous tax regime and investment incentives, such as the Citizenship by Investment program, which offers citizenship in return for significant real estate investments.
These policies make Nicosia an attractive option for those looking to invest in property while also gaining a foothold in the European Union.
Looking forward, there are several reasons why properties in Nicosia will likely continue to gain value.
The city is at the heart of Cyprus' ongoing economic growth, with sectors like tourism, education, and technology expanding rapidly.
Moreover, Nicosia is increasingly becoming a hub for international business, attracting more expatriates and global investors.
This economic dynamism, combined with the city's unique cultural and historical appeal, positions Nicosia's real estate market for sustained growth and makes it an attractive option for both living and investment.
Top neighborhoods in Nicosia to consider for living
Areas in Nicosia that are budget-friendly
If you're looking to buy property in Nicosia on a budget, there are a few neighborhoods you might want to consider.
Here is a summary table. Below, we will give more details.
| Neighborhood | Reason for Affordability | Potential for Value Increase | Property Types | Average Price per Sqm | Demographics | Strengths | Weaknesses |
|---|---|---|---|---|---|---|---|
| Kaimakli | Peripheral location, older properties | City expansion and upgrades | Older houses, new apartments | Attractive compared to central Nicosia | Locals, young families, older residents | Growing connectivity, traditional community feel | Some areas require development |
| Agios Dometios | Mixed urban and residential nature | Increasing popularity for balanced lifestyle | Older homes, newer apartment complexes | Reasonable, good value | Students, families, professionals | Availability of amenities, comfortable lifestyle | In the shadow of more central areas |
| Pallouriotissa | Further from city center, slower development | Ongoing development | Older homes, newer apartments | Lower than many other parts of Nicosia | Families, older residents | Potential for growth, community sense | Seen as less central, slower short-term value growth |
Kaimakli
In Nicosia, if you're eyeing affordable areas for property investment, consider Kaimakli.
It's one of the more budget-friendly neighborhoods, mainly due to its slightly peripheral location and the prevalence of older properties. However, as the city expands and upgrades, property values in Kaimakli are likely to rise. You'll find a variety of properties here, mostly older houses and some new apartments.
The average price per square meter in Kaimakli is attractive, especially when compared to central Nicosia. The area is popular among locals, including young families and older residents.
The strengths of Kaimakli are its growing connectivity to the city center and its traditional community feel. The downside is that some parts of the neighborhood still require development and modernization.
Agios Dometios
Agios Dometios is affordable due to its mixed urban and residential nature, which has traditionally kept prices lower.
The potential for property value increase is there, especially as the area becomes more popular for its balance of city life and quiet residential spaces. In Agios Dometios, you'll find a mix of older homes and newer apartment complexes.
The average price per square meter in Agios Dometios is reasonable, offering good value. The neighborhood is home to a diverse mix of residents, from students to families and professionals.
Its strengths are the availability of amenities and a comfortable lifestyle, but it's still in the shadow of more central areas, leading to slower growth in property values.
Pallouriotissa
Pallouriotissa is more affordable because it's a bit further from the city center and has been slower to develop.
However, this is changing, and as development continues, property values are expected to rise. The area predominantly features older homes with some newer apartment buildings.
The average price per square meter in Pallouriotissa is lower than in many other parts of Nicosia. Pallouriotissa has a diverse population, including families and older residents.
The strengths of this neighborhood are its potential for growth and the sense of community, but it's still seen as less central, which can affect short-term property value growth.
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Areas in Nicosia that are popular and upscale
When looking to buy property in Nicosia, three neighborhoods stand out as upscale and popular choices. These neighborhoods each have their unique character and draw different types of residents.
| Neighborhood | Average Price per sqm | Resident Profile | Strengths | Weaknesses | Future Outlook |
|---|---|---|---|---|---|
| Engomi | €3,500 | Affluent professionals, expatriates | Serene environment, upscale amenities | Less vibrant, isolated feel | Likely to remain popular, prices may plateau |
| Strovolos | €3,000 | Well-to-do families, professionals | Good schools, community vibe | Traffic during peak hours | Expected to maintain hype |
| Ayios Dometios | €2,800 | Locals, expats, diplomats | Cultural richness, central location | Limited new developments | Remain popular with historical charm |
Engomi
Engomi is one of the most upscale areas in Nicosia.
It's expensive due to its proximity to prestigious embassies and universities, attracting diplomats and academics. The area boasts luxury villas and high-end apartments in Engomi, with an average price per sqm around €3,500.
Residents in Engomi are generally affluent professionals and expatriates. Strengths include its serene environment, excellent educational institutions, and upscale amenities.
However, it's less vibrant than other areas and can feel isolated. It's likely to remain popular due to its prestigious status, but prices may plateau as they're already at a premium.
Strovolos
Strovolos is another sought-after neighborhood known for its spacious properties and green spaces.
This area has a mix of old charm and modern developments, making it expensive but with a homely feel. The average price per sqm in Strovolos is around €3,000. It's popular among well-to-do families and professionals seeking a balance of city life and tranquility.
Strengths include accessibility to the city center, good schools, and community vibe.
The downside can be the traffic during peak hours. The area is expected to maintain its hype, particularly with ongoing developments enhancing its appeal.
Ayios Dometios
Ayios Dometios stands out for its elegant architecture and historical significance.
The properties in Ayios Dometios range from traditional houses to modern apartments, with an average price per sqm of approximately €2,800. The neighborhood attracts a mix of locals and expats, including diplomats due to its diplomatic missions.
The area's strengths are its cultural richness and central location. Weaknesses include limited new property developments.
Ayios Dometios is likely to remain popular, especially as it retains its historical charm and offers a quieter alternative to more bustling parts of the city.
Make sure you understand the real estate market in Nicosia
Don't rush into buying the wrong property in Cyprus. Sit, relax and read our guide to avoid costly mistakes and make the best investment possible.
Areas in Nicosia that emerge as new hotspots
Let's explore these emerging neighborhoods in Nicosia that, according to our local partners and our customers, are getting quite a bit of buzz lately.
| Neighborhood | Average Price per sqm | Resident Profile | Strengths | Weaknesses | Future Outlook |
|---|---|---|---|---|---|
| Pallouriotissa | €2,000 | Young professionals, creatives | Burgeoning arts scene, affordability | Ongoing development, less established | Expected to gain more popularity |
| Aglantzia | €2,200 | Students, young adults | Lively atmosphere, growth potential | Noise, crowdedness | Likely to continue gaining popularity |
| Platy Aglantzias | €2,500 | Families, young professionals | Natural surroundings, modern amenities | Distance from city center, limited nightlife | Growing popularity for balanced living |
Pallouriotissa
Pallouriotissa was initially a more traditional, less known area but is now emerging as a trendy hotspot.
This transformation is due to new cafes, art spaces, and small businesses, attracting a younger, artistic crowd. Property prices are cheaper in Pallouriotissa, with an average of around €2,000 per sqm, because it's still under the radar compared to established upscale areas.
This neighborhood is expected to keep gaining popularity, especially among young professionals and creatives seeking a vibrant, evolving community.
Strengths include its burgeoning arts scene and affordability. Weaknesses are its ongoing development phase and less established infrastructure.
Aglantzia
Aglantzia, once a quieter suburb, is gaining traction due to its large student population and proximity to the university.
The area has evolved with more bars, restaurants, and cultural activities. Properties in Aglantzia are relatively affordable, averaging €2,200 per sqm, making it attractive for first-time buyers and investors.
It's likely to continue gaining popularity, especially with the young and academic crowd.
The strengths are its lively atmosphere and potential for growth. Weaknesses include noise levels and crowdedness.
Platy Aglantzias
Platy Aglantzias is rapidly gaining attention for its green spaces and modern living options.
Initially more subdued, it now offers a blend of peaceful living with urban conveniences. The average price per sqm in Platy Aglantzias is around €2,500, lower than in more central areas. This neighborhood is drawing in families and young professionals for its quality of life and proximity to nature.
It's poised to grow in popularity, balancing urban and suburban living. Strengths include its natural surroundings and modern amenities.
Weaknesses are its distance from the city center and limited nightlife options.
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Top neighborhoods in Nicosia to invest in property
Areas in Nicosia with a strong rental demand
If you're considering buying real estate in Nicosia for renting it out, these neighborhoods with high demand for rentals should be considered.
| Neighborhood | Property Type | Average Rent | Rental Yield | Tips | Weaknesses |
|---|---|---|---|---|---|
| Engomi | Studio/1-Bedroom Apartments | €500-€600/month | 5-6% | Near educational institutions | Seasonal demand |
| Agioi Omologites | 2-3 Bedroom Apartments/Houses | €700-€1,000/month | 4-5% | Close to business centers | Higher investment |
| Strovolos | 3-Bedroom Houses/Large Apartments | €800-€1,200/month | 3-4% | Near schools, family-friendly | Higher maintenance |
Engomi
Engomi is highly sought-after due to its proximity to universities, attracting a steady stream of student tenants.
In Engomi, demand is predominantly for studio or one-bedroom apartments, which are favored by both local and international students. Rental income for such properties averages in Engomi around €500-€600 per month.
The rental yield in Engomi can be impressive, often hovering around 5-6%, thanks to consistent demand. To maximize rental income, focusing on properties near educational institutions is wise, as this reduces vacancy periods and attracts responsible tenants.
However, the main weakness is the seasonal nature of demand, with vacancies potentially higher during summer.
Agioi Omologites
Agioi Omologites attracts a mix of young professionals and families due to its central location and good amenities.
Two to three-bedroom apartments and small houses in Agioi Omologites are in demand, with rental prices ranging from €700 to €1,000 per month.
The rental yield in is around 4-5%. Properties close to business centers or with easy access to public transportation are particularly profitable.
The area's downside is the higher initial investment needed for larger properties and the potential for occasional vacancy due to tenant turnover.
Strovolos
Strovolos is popular among families and professionals, given its spacious homes and good schools.
The demand is mainly for three-bedroom houses or larger apartments in Strovolos, with rents ranging from €800 to €1,200 per month.
The average rental yield in Strovolos is about 3-4%. Properties near schools or with family-friendly amenities can command higher rents and have lower vacancy rates.
The challenge in Strovolos is the higher property prices and the need for more extensive maintenance for larger homes.
Don't lose money on your property in Nicosia
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Areas in Nicosia where property prices might increase in the future
In these areas in in Nicosia you can still find properties at a reasonable price, with room for appreciation as the neighborhoods develop.
| Neighborhood | Property Type | Average Price/Night | Tips | Weaknesses |
|---|---|---|---|---|
| Old City | Furnished Apartments/Boutique Homes | €50-€70 | Unique features, near attractions | Seasonal fluctuations |
| Ayios Dometios | 2-Bedroom Apartments/Houses | €40-€60 | Tranquil neighborhoods | Off main tourist path |
| Platy Aglantzias | 1-2 Bedroom Modern Apartments | €45-€65 | Close to main roads, extra amenities | Increasing competition |
Old City
The Old City of Nicosia is a magnet for tourists seeking short-term stays, with its rich history and vibrant cultural scene.
Tourists and short-term visitors look for furnished apartments or boutique homes, with a preference for modern amenities and a touch of local character.
The average price per night in Old City is around €50-€70. Properties with unique architectural features or proximity to major attractions can fetch higher rates.
The key is to invest in properties that offer a blend of comfort and local charm. The main drawback is the seasonal fluctuation in tourist numbers, affecting occupancy rates.
Ayios Dometios
Ayios Dometios is becoming popular for short-term rentals due to its quieter environment and affordable prices.
Visitors in Ayios Dometios often seek two-bedroom apartments or small houses, with an average nightly rate of €40-€60. Proximity to local eateries and parks can be a selling point.
Focusing on well-maintained properties in tranquil neighborhoods can attract guests seeking a relaxing stay.
However, being slightly off the main tourist path, it may take effective marketing to maintain consistent occupancy.
Platy Aglantzias
Platy Aglantzias, with its blend of residential calm and accessibility to the city, is gaining traction in the short-term rental market.
Guests typically look for modern, well-equipped one or two-bedroom apartments in Platy Aglantzias, with nightly rates around €45-€65.
Properties close to the main roads or with easy access to Nicosia's attractions are ideal. Offering additional amenities like Wi-Fi or parking can enhance attractiveness.
The challenge in Platy Aglantzias is the growing competition as more properties enter the short-term rental market.
Make sure you understand the real estate market in Nicosia
Don't rush into buying the wrong property in Cyprus. Sit, relax and read our guide to avoid costly mistakes and make the best investment possible.