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- Zman Yisrael reports rising interest in Cyprus property, while warning of risks behind promises of high returns.
- Demand is driven by proximity, lower prices than Israel, tax conditions, and a weaker euro against the shekel.
- One-bedroom apartments can cost up to €350,000 in central Limassol and near Paphos’ sea and harbour.
- The report estimates about 3,000 Israeli families live permanently in Cyprus, with numbers rising by several hundred annually.
Not all Israeli property buyers view purchasing a home in Cyprus as simply an investment. For some, the neighbouring island has become a potential “Plan B” amid prolonged insecurity and political and social uncertainty in Israel.
An extensive report by Israeli outlet Zman Yisrael highlights growing interest in the Cypriot property market, while also warning of the risks behind promises of high returns and rapid increases in property values.
Geographical proximity, lower prices compared with Israel, the tax environment and the weakening of the euro against the shekel are cited as key factors driving demand.
Property prices in Limassol and Paphos
Real estate agents told the Israeli outlet that property values in Cyprus are increasing by between 5% and 10% annually. For properties purchased before completion, sellers are reportedly promoting expectations of increases of as much as 20% to 30% by the time they are handed over.
In central Limassol, a one-bedroom apartment can cost up to €350,000. In areas outside the centre, such as Agios Athanasios and Zakaki, comparable properties are estimated at around €250,000.
In Paphos, prices near the sea and harbour can also reach €350,000 for a one-bedroom apartment, while properties in the universal area range from €250,000 to €300,000.
In Geroskipou, where prices are described as around 20% lower, the area is presented as having greater development potential due to planned projects. One example cited in the report is a 62-square-metre apartment priced at €210,000, excluding 19% VAT.
Buyers are also advised to factor in additional costs. A furniture package can cost from €15,000 for a one-bedroom apartment to around €24,000 for a two-bedroom property, while installing solar panels can add approximately €5,000.
‘A kind of safe haven’
The report features the case of Lina Wiener, whose daughter moved to Paphos with her family. Wiener bought an apartment in the city for €160,000 before the building permit had even been issued.
She said the purchase was not made solely for investment purposes, but also to give the family an alternative should the situation in Israel deteriorate.
“It was important for us to buy, so that we would have a Plan B, a kind of safe haven,” she said.
She linked the family’s decision to social divisions, the cost of living, judicial reform and the security situation following October 7.
She added that her grandchildren are growing up in Cyprus without sirens or the daily fear of missile attacks. They attend a Cypriot public kindergarten and speak Greek, English and Hebrew.
Thousands of Israeli families in Cyprus
According to estimates cited by the report, around 3,000 Israeli families live permanently in Cyprus, with their number increasing by several hundred each year.
The report also refers to tens of thousands of Israelis who have bought property on the island, although it does not provide official data to substantiate that estimate.
The roughly 40-minute flight, the possibility of obtaining residency without an EU passport and the growth of Jewish communities in Paphos and Larnaca are also cited as factors making Cyprus attractive.
More businesses catering to Israelis have also emerged, including restaurants offering kosher products, while direct air connections continue to expand.
Growing presence sparks debate
The growing Israeli presence in Cyprus’ property market has also triggered political reactions.
The Israeli outlet recalls comments by MEP Fidias Panayiotou regarding the “purchase of Cyprus” through property investments and major development projects.
Israel’s Ambassador to Cyprus, Oren Anolik, rejected the claims and called on Cypriots to welcome people who choose to live and invest on the island, regardless of nationality.
The issue is also linked to the difficulties faced by Cypriots in finding affordable housing. The report notes that, with an average salary of around €2,000, some locals struggle to afford rents of up to €900 for a small newly built apartment.
Also read: Cyprus’ economy is growing – but are citizens?
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