Newsroom
The Republic of Cyprus is seeing a growing Israeli presence as more Israelis buy homes, establish businesses and invest in large-scale developments, with some choosing to make the island their permanent home.
The trend has accelerated since the October 7, 2023 attacks in Israel and the conflicts that followed. For some Israelis, Cyprus offers a nearby alternative should conditions at home deteriorate, while others are drawn by the island's location, climate, EU membership and existing business links.
“I want to have a Plan B in case the situation in Israel gets more difficult,” one recent property buyer in Limassol told German broadcaster DW.
For others, the appeal is more practical. Cyprus is less than an hour away by air from Israel, while Israeli companies have increasingly used the island as a base for accessing European markets.
Property demand concentrated in the coastal districts
Israeli buyers have become a significant presence in Cyprus's coastal property market.
Figures from the Department of Lands and Surveys presented to parliament show that Israeli buyers were involved in 3,851 property transfers and sale contracts in Larnaca, Paphos and Limassol between 2021 and 2024, according to DW. More recent analysis of Land Registry data puts the total across the districts at 3,909 properties during the same period, making Israel the fourth-largest foreign nationality in the recorded figures.
The official statistics cover both completed sales and properties for which contracts have been deposited. They count properties rather than the amount of land involved, meaning an apartment and a large plot are each recorded as one property.
Israeli demand has been particularly strong in Larnaca, Paphos and Limassol. Between 2021 and the end of 2024, Israeli buyers acquired 1,406 properties in Larnaca, 1,291 in Paphos and 1,154 in Limassol, according to the Land Registry data.
The market is not limited to people buying holiday apartments. Israeli media have reported that thousands of Israeli families now live permanently in Cyprus, while tens of thousands of Israelis are believed to own property on the island without residing here throughout the year.
Cyprus has long attracted foreign property buyers, particularly in coastal areas. More than 37,000 properties were acquired by foreign buyers between 2021 and the end of 2024, while Cypriot buyers accounted for more than 200,000 purchases over the same period.
From homes to major developments
Israeli involvement is also visible in the commercial and tourism sectors.
Israeli hotel group Fattal has invested heavily in Cyprus, with projects in Limassol, Paphos and Larnaca. Other Israeli-linked developments include the redevelopment of the Palm Beach hotel in Larnaca, valued at more than €110 million, and the approximately €40 million Aqua Residences project, which includes plans for two 15-storey towers along the seafront.
In the Limassol district, an Israeli-backed project has sought to revive the largely abandoned village of Trozena. Plans include restoring homes and developing tourism facilities, a campsite and a winery.
The Trozena project has become one of the most contentious examples of foreign investment in recent months. The site lies within a Natura 2000 protected area, and authorities have examined work carried out before all required planning and building approvals were secured. Local authorities have also rejected claims circulating online that Israeli investors had bought the entire village or were preventing public access.
The controversy has added to an existing debate over how Cyprus manages foreign investment in property and development.
A growing community
The change is also visible beyond construction sites and property transactions.
Jewish places of worship, Israeli-owned businesses and services aimed at the country's growing Israeli population have appeared in Larnaca, Limassol and Paphos. Restaurants offering kosher food and Hebrew-language advertising have become increasingly familiar sights.
The community's growing size is also reflected in plans for a private Jewish school in Polemidia, near Limassol, designed to accommodate up to 1,500 pupils.
Hebrew-language political advertising has also appeared on Cypriot roads. During the summer, billboards promoting Israeli politician Gadi Eisenkot's Yashar party were displayed along major routes, targeting Israeli voters living or staying on the island.
Debate over foreign ownership
The increase in Israeli investment has become part of a larger Cypriot debate over foreign ownership of property.
The issue carries particular sensitivity because Cyprus has already experienced a major influx of foreign capital, particularly Russian money, following the expansion of its citizenship-by-investment programme after the 2013 financial crisis.
Opposition voices have argued that Cyprus needs tighter oversight of foreign property purchases and greater protection against excessive concentration of property in the hands of overseas investors.
AKEL Secretary General Stefanos Stefanou has criticised what he described as uncontrolled sales of Cypriot land to foreigners and has specifically raised the growth of Israeli-owned residential developments.
MEP and Direct Democracy leader Fidias Panayiotou has also criticised the scale of Israeli investment, arguing that excessive dependence on capital from one foreign country could create economic risks.
Israeli Ambassador to Cyprus Oren Anolik has rejected suggestions that Israelis are exercising disproportionate influence over the island. He has argued that Israelis living and operating businesses in Cyprus are increasingly part of the country's social and economic life.
Anolik has also warned against singling out Israelis as a group or using stereotypes about foreign economic power, saying such rhetoric could contribute to antisemitism.
For Cyprus, the issue now extends beyond individual property purchases. Israeli residents and investors are becoming an increasingly visible part of the island's housing market, tourism industry and business community, while the government faces the broader question of how to balance foreign investment with property regulation, environmental protection and the interests of local communities.
