Nicosia, also known by its Greek name Lefkosia, is the capital of Cyprus and its largest city. A vibrant crossroads of history, culture and commerce, the city stands out as a property hotspot for both lifestyle buyers and investors. Whether you’re drawn to the city’s blend of modern amenities and ancient landmarks or its central location and solid infrastructure, buying property in Nicosia can be an excellent decision.
In this guide, we’ll explore why Nicosia continues to attract overseas buyers, give an up-to-date overview of the local housing market and highlight the best areas to invest in. We’ll also walk you through the essential steps to complete your purchase smoothly in 2025.
Contents
- Why buy property in Nicosia?
- Nicosia property market overview
- Top places to buy in Nicosia
- Is Nicosia a good investment?
- How to buy property in Nicosia: step-by-step guide
Buying property in Nicosia, Cyprus’ divided city, offers a unique culture
Why buy property in Nicosia?
Nicosia is a city of contrasts – a place where urban energy meets deep-rooted history. As the political and economic heart of Cyprus, it offers a level of year-round activity and infrastructure that few other parts of the island can match.
For those seeking a cosmopolitan lifestyle, Nicosia delivers with its range of shopping centres, boutique stores, nightlife and international cuisine. The city is home to reputable universities, hospitals, embassies and corporate headquarters, making it a hub for professionals, academics and diplomats.
If you’re interested in cultural heritage, Nicosia does not disappoint. The old city, still bounded by Venetian walls, features a maze of narrow streets filled with museums, galleries, churches and traditional townhouses. Throughout the year, festivals, art exhibitions and live performances celebrate the city’s multifaceted identity.
Beyond amenities, Nicosia’s central location gives it a strategic advantage. It’s well connected by motorways to the island’s coastal cities and mountains. While it doesn’t offer beachfront living, sunny shores like Mackenzie Beach in Larnaca are under an hour away by car.
Overall, the capital presents an attractive mix of urban convenience, cultural richness and central positioning – ideal for both lifestyle buyers and investors.
For a more detailed look at purchasing property on the island, claim your free copy of our Cyprus Buying Guide:
Nicosia property market overview
The property market in Nicosia remains resilient in 2025, buoyed by strong demand from both Cypriot and overseas buyers. Unlike coastal holiday hotspots, Nicosia’s residential market is largely driven by permanent residents, professionals and students. This gives the city a more stable rental environment and less exposure to seasonal trends.
According to local estate agents, demand is strongest for modern flats in the city centre and surrounding suburbs, where prices vary depending on proximity to schools, universities and business centres. One-bedroom apartments typically start from €120,000. Two-bedroom city-centre homes can cost €150,000 to €200,000, rising significantly for newly built or luxury units.
Detached homes and villas are rarer near the centre but more common in outlying districts like Engomi, Lakatamia or Strovolos. Family homes in these areas start from around €280,000, with high-end villas in desirable neighbourhoods commanding in excess of €1 million. After finding an estate agent in Cyprus, you will be able to narrow down your search more easily.
As the administrative capital, Nicosia is home to the presidential palace, key ministries and diplomatic missions. This creates a consistent demand for both upscale rental accommodation and well-located commercial real estate.
While interest rates in Cyprus remain higher than pre-pandemic levels, mortgage options are accessible, especially with the help of bilingual brokers. For non-residents, a deposit of 30% is generally required. It’s advisable to fix your exchange rate using a forward contract to protect your budget against currency swings. For the best rates, learn about using a Cypriot mortgage broker.
Top places for buying property in Nicosia
Nicosia offers a wide variety of neighbourhoods, allowing you to choose between city-centre excitement or suburban space and tranquillity.
Strovolos
One of the most popular districts for local families and expatriates alike, Strovolos is known for its well-planned streets, excellent schools and large homes. It combines urban convenience with parks and green areas, making it ideal for buyers seeking a balanced lifestyle. Residents benefit from supermarkets, cinemas, gyms and cultural venues. A modern apartment here starts around €200,000, while large detached villas can exceed €900,000.
Engomi
Engomi is an upmarket suburb west of the centre with a strong international feel thanks to its embassies, private schools and proximity to universities. The area is particularly in demand among professional families and foreign buyers seeking security and easy access to amenities. Expect prices from €180,000 for a two-bedroom apartment. Luxury villas with private pools are available from €800,000 upwards.
Aglantzia
To the east of the centre, Aglantzia stands out for its green spaces and calm surroundings. It’s popular among academics and young families. The area offers a mixture of older homes and newer developments, with property starting at €150,000 for flats and from €300,000 for family houses. Its proximity to the University of Cyprus also makes it a solid choice for rental investors.
Lakatamia
This fast-developing area attracts first-time buyers and young families thanks to its relatively affordable prices. It offers a good range of properties with private gardens and a relaxed residential feel. Nearby schools, bakeries and community centres appeal to locals planning to settle long term. Prices start from €120,000 for apartments and around €250,000 for townhouses and detached homes.
Nicosia old city
For those drawn to history, the old quarter within the medieval walls offers a unique setting. Here, character properties have been renovated into stylish homes and apartments. The area has undergone significant regeneration, attracting both artists and investors. While walking distance from all city centre attractions, historic charm means prices are often higher. Expect to pay around €250,000 for a two-bedroom property and up to €700,000 for upgraded traditional homes.
A short drive from the city, Kakopetria makes a peaceful retreat when buying property in Nicosia
Is Nicosia a good investment?
For those thinking about long-term value and returns, Nicosia offers more than just a desirable lifestyle – it’s a sound investment destination too. The city is the political, commercial and administrative powerhouse of Cyprus. As such, it enjoys steady demand for housing, regardless of tourism trends or seasonal variability.
The strong student population and professional workforce fuel an active rental market. Buy-to-let investors often target areas close to universities and business centres, while family-friendly districts like Strovolos and Engomi are good for long-term tenants. Property investment in Cyprus is worth exploring because, while wental yields vary, well-located apartments typically offer 4% to 6% annual returns.
For short-term rental investors, Nicosia has some limitations. Coastal resorts attract more holidaymakers, but areas with cultural landmarks – such as the old city – can work well for Airbnb or serviced apartments aimed at professionals or weekend visitors.
Commercial investment is another possibility. Office space remains in demand, especially near government ministries and embassies. That said, the commercial sector requires local knowledge and often involves longer lease negotiations, making it better suited to experienced investors.
Property prices in Nicosia have remained stable compared to other parts of Europe and are expected to grow moderately in 2025. Ongoing regeneration in the city centre and suburban development across the district may contribute to capital appreciation in the years to come.
With low vacancy rates and steady demand, Nicosia continues to represent a low-risk, growth-oriented option for international property buyers in Cyprus.
How to buy property in Nicosia: step-by-step guide
Buying property in Nicosia can run smoothly – if you know what steps to take and get the right guidance from the start. Here’s how to approach your purchase sensibly in 2025:
- Define your goals: Think carefully about why you’re buying. Are you relocating, investing, or looking for a part-time residence? Clarify your budget, key requirements and which areas fit your lifestyle or investment plans. Remember to factor in purchase costs of 10% to cover legal fees, taxes and other expenses.
- Do your research: Download official Cyprus buying guides, attend webinars and follow city property trends. Talk to other property buyers if possible. Focus your search on a few neighbourhoods to avoid being overwhelmed.
- Manage your currency risk: When sending large sums internationally, exchange rate movements can have a big impact on your budget. A 2% change could cost you thousands. Speak with a currency expert, such as Smart Currency Exchange, and consider a forward contract that locks in your exchange rate ahead of payment.
- Build your advisory team: Find an experienced, bilingual estate agent who specialises in Nicosia. Also work with an independent property lawyer who can perform due diligence, check title deeds and handle the contract process. If needed, consult a tax adviser too.
- Book a viewing trip: Schedule an in-person visit once your shortlist is ready. A tailored viewing trip lets you explore neighbourhoods, view properties and get local insights. A good agent will plan viewings that match your goals.
- Make your offer: Offers are usually presented in writing through the estate agent. Once accepted, your solicitor will review contracts and begin due diligence. Negotiation is normal, and having mortgage pre-approval or cash funds can strengthen your position.
- Sign reservation and sales contracts: You’ll pay a reservation fee to hold the property, then a deposit after your lawyer is satisfied with the legal review. Deposits for international buyers are often 20%–30%.
- Prepare utilities and logistics: During the transaction period (typically eight to ten weeks), arrange for utility connections, insurance and property management if needed. Your lawyer or agent can assist with paperwork.
- Complete the purchase: When everything is in place, you’ll sign the final contract, transfer the remaining balance and officially become the owner. You’ll receive the keys after signing with the notary.
- Register the property: Finally, your lawyer will register your ownership with the Cyprus Department of Lands and Surveys. This ensures the title is legally in your name and protects your investment.
Start your journey with Your Overseas Home
Nicosia offers more than just sunshine – it’s a capital city with long-term appeal for property buyers. If you’re ready to start planning a purchase, now’s the time to get expert advice.
At Your Overseas Home, we work with approved estate agents, legal professionals and currency specialists across Cyprus. Whether you’re buying for lifestyle or investment, we can help you make informed decisions every step of the way.
Book a free consultation today to learn more.
