Cyfield Group Executive Director George Chrysochos discusses how the Nicosia real estate market has developed in recent years, as the capital seeks to expand its appeal.
As he says in the November issue of GOLD magazine and its Cover Story "Nicosia Goes Global", most buyers in the capital are Cypriots who purchase homes for their own use; however, a gradual increase of foreign buyers has been observed. He also claims Nicosia is increasingly appealing to funds, IT and fintech companies, as well as to international groups seeking to establish headquarters in Cyprus.
As more local or international investors show interest in Nicosia, what are they looking for?
The real estate market in Nicosia has always had a strong local foundation. Most buyers in the capital are Cypriots who purchase homes for their own use. This is the main reason why the market has remained stable over time: it reflects real family needs rather than speculation. Local buyers also benefit from relatively low mortgage rates, which continue to support affordability and demand. At the same time, we have seen interest from investors who purchase residential property to rent. The options for investment in Cyprus outside the real estate sector remain limited and many investors consider property ownership a secure and tangible asset.
However, we are now observing a gradual increase in foreign buyers. This rise is linked to the saturation of other cities, particularly Limassol, where living costs, rents and property prices have increased significantly. In addition, there is a clear lack of soft infrastructure – especially schools – in some coastal cities,. As a result, international companies and professionals have started looking to Nicosia as a more balanced and sustainable base.
Nicosia also benefits from its role as the capital. Decision-making institutions, universities, embassies and financial services firms are concentrated here. This creates a steady demand from students, diplomats and professionals who prefer to live and work in the city.
How is the Nicosia’s real estate market evolving and what opportunities do you see for both residential and office development in the coming years?
Nicosia is becoming increasingly attractive to international businesses. Demand for high-quality office space is rising as companies seek modern buildings that meet high energy performance standards. The Government is also relocating services to upgraded office environments, which reinforces this trend.
In the residential sector, we are observing a return to the capital. Many people, especially younger buyers, want to live in central neighbourhoods where amenities are within walking distance. Lifestyle factors play a greater role today. At the same time, serviced apartments are becoming more popular, especially among professionals who seek flexibility and convenience. Location is key. Areas with access to public services, business districts and cultural activity will continue to attract demand.
How does Nicosia’s real estate market compare to that of other cities in Cyprus in terms of price?
Land in Nicosia is generally more affordable than in Limassol. This allows for higher building coefficients and often more efficient development. The supply of new residential units in Nicosia is lower compared with some other cities and limited supply supports prices and maintains a steady upward trend. Another important factor is that the market is driven mainly by local buyers, who are well informed. As a result, prices remain realistic and not excessively inflated. With interest rates remaining relatively low and wages gradually increasing, demand from local households is expected to continue. Strong demand means that prices are likely to keep rising steadily rather than sharply.
What kinds of residential properties are most in demand in Nicosia today and who is buying them?
Serviced apartments in central areas are currently experiencing high demand. The new generation prefers proximity to schools, workplaces, cafes and cultural spaces. Many buyers are willing to choose smaller apartments in order to live in vibrant neighbourhoods with accessible amenities. Recent changes to VAT regulations have also influenced apartment sizes, leading to more compact layouts that meet current budget and compliance requirements. Interest in student housing has slowed slightly because student numbers have stabilised. However, the broader demand for well-located residential units remains strong.
How is the demand for modern office space in Nicosia evolving?
Nicosia is increasingly appealing to funds, IT and fintech companies, as well as to international groups seeking to establish headquarters in Cyprus. Local companies are also expanding and thus require more professional office environments. Even with hybrid working models, the need for physical office space continues. Businesses rely on shared space to maintain collaboration, corporate culture and client service. Specifications matter. Energy efficiency, ventilation systems, raised floors and structured cabling are now essential requirements rather than optional features.
Looking five to ten years ahead, what kind of city do you envision Nicosia becoming?
Every resident of Nicosia hopes to see a united city. The division remains a visible reminder of our recent history and continues to disrupt the city’s urban and social development. Nicosia deserves to become a capital that Cyprus is proud of. A city where people can live, work and enjoy their leisure without barriers. A city centre that is vibrant and accessible to all income levels. A place with strong public spaces, cultural activity and modern infrastructure. We envision a city with a high quality of life, a diverse population, strong education and healthcare services and meaningful employment opportunities. Nicosia can become a city that attracts international talent while nurturing local growth. The foundations already exist. What is needed now is coordinated planning and a long-term vision.
This interview is part of the “Nicosia Goes Global” cover story in the November edition of GOLD magazine. Click here to view it.
