Why is this the time to invest in Cyprus?
The real estate market in Cyprus faces a historic turning point in 2026. While many Israelis have already discovered the charm of the neighboring island, the combination of Energy agreements with Israel and Greece And Cyprus joining the Schengen area, creates a rare opportunity for significant capital appreciation in the next two years.
In this article, we will analyze how geopolitical changes affect the Israeli investor's pocket, and how the projects of Kashi Group Located right in the heart of the new demand areas.
1. Schengen Effect 2026 – The Expected Price Surge
Starting in 2026, Cyprus officially becomes part of the Schengen area. For real estate investors, this is a game changer:
Increased accessibility: The free movement of millions of Europeans to the island increases demand for short and long-term rentals.
Immediate increase in value: Historically, countries that joined Schengen have seen real estate prices rise by 12%-18% In a short time due to alignment with continental European prices.
Last chance for residency: The investment threshold for obtaining permanent residency (PR) is currently €300,000, but is expected to increase to €400,000 or more to meet European standards.
2. The Alliance with Israel and Greece – Energy and Economic Security
The energy agreements between Jerusalem, Nicosia and Athens are much more than gas pipelines. Project The Great Sea Interconnector, whose connection is progressing in 2026, is expected to lead to a dramatic decrease in electricity costs on the island.
Impact on real estate: A decrease in asset maintenance costs (OPEX) makes investors' net yield higher and more attractive.
Infrastructure development: in areas like Larnaca, where Kashi Group projects are located, the environmental development and construction of the new marina rely on the economic growth created by these energy agreements.
3. Where is it worth investing? Kashi Group's projects
Kashi Group focuses on locating properties with high improvement potential in strategic areas:
Larnaca (the strategic city): With its international airport and new marina, Larnaca is the main beneficiary of the Schengen effect. We offer villas and apartments in locations close to the development hubs.
Limassol: The "City" of Cyprus and the economic center, Limassol continues to establish its position as the business and entertainment capital of the island, and is considered the most sought-after destination for the international high-tech community and institutional investors.
In 2026, with the full opening of Europe's largest entertainment and casino complexes, the city experienced a surge in demand for high-end housing.Ayia Napa and Portras: Resort areas where we market properties starting at €141,000, offering some of the highest Airbnb yields in Europe during the summer.
Questions and Answers for Real Estate Investors in Cyprus 2026
Are real estate prices in Cyprus still rising?
Yes. In 2025 we saw an average increase of about 5% and in premium areas like Paphos and Larnaca even more. The expectation for 2026-2027 is a continued increase thanks to joining Schengen.
How do the gas agreements with Israel affect me as an investor?
The agreements strengthen Cyprus' economic stability and lower energy costs, which increases property values and, accordingly, rental yields.
What is the average rental yield in Cyprus?
The return usually ranges from 5% to 8% per year, depending on the type of property and location. Small apartments in demand areas (such as Larnaca, Limassol) yield higher returns.
What is the "Schengen effect" on real estate prices?
This is a price increase resulting from increased foreign demand and the elimination of entry barriers for Europeans, leading to an alignment with the high real estate prices in Greece, Spain, and Portugal.
Is it safe for Israelis to buy real estate in Cyprus right now?
Relations between Israel and Cyprus are at an all-time high. Security and economic cooperation make Cyprus one of the safest and friendliest destinations for Israeli investors.
Is there high taxation on purchasing a property?
No. Cyprus offers significant tax benefits, including the abolition of certain stamp duties in 2026, and very low corporate tax.
How much minimum equity is required to invest through Kashi Group?
We offer opportunities starting at €141,000 (approximately 560 thousand NIS), with financing options and convenient payment plans.
Should I buy "on paper" or a ready-made property?
Purchasing "off-plan" allows you to enjoy a 20%-30% increase in value until construction is complete, especially in projects in developing areas.
What happens with the visa for someone who buys property?
An investment of €300,000 in a new property allows for permanent residency for the entire family, granting the right to live on this amazing island.
Why choose to purchase real estate at Kashi Group?
We accompany the Israeli investor from end to end, from locating the property, through legal support to ongoing management, while focusing only on properties in premium locations.
Interested in a personal property tour or advice on our new projects in Larnaca, Limassol and Ayia Napa Portaras?
Call now – 073-7020221
