Nicosia Central Park Residences: A 21-Storey VAT-Exempt Tower with 5% Guaranteed Rental Yield Opposite the Diplomatic Quarter

Nicosia Central Park Residences: A 21-Storey VAT-Exempt Tower with 5% Guaranteed Rental Yield Opposite the Diplomatic Quarter

Published 27 July 2026 by Kefah Abu Gosh

Nicosia Central Park Residences is an iconic 21-storey landmark tower in the heart of Nicosia's administrative and business district, positioned directly opposite the central city park and the diplomatic quarter. A limited collection of 2- and 3-bedroom apartments starting from €860,000 — with two structurally rare investor attributes: the development is VAT-exempt (saving buyers a 19% upfront cost), and it comes with a 5% guaranteed net rental yield for three years, managed entirely by an in-house property division. 16 units currently available. Project details.

The two structural attributes that make this a distinct category

Most Cyprus residential inventory is either yield-focused or trophy-focused. Nicosia Central Park Residences is neither — it is structured for immediate risk-adjusted return through two specific mechanisms that most Cyprus developments do not offer:

1. VAT exemption — a 19% upfront saving

Standard Cyprus new-build residential attracts 19% VAT (or 5% reduced VAT for eligible primary residences under 130 sqm). Nicosia Central Park Residences is exempt from VAT entirely — a specific legal structuring that saves the buyer 19% of purchase price at close. On an €860,000 apartment that is a ~€163,000 upfront saving that compounds through the entire hold period.

2. 5% guaranteed net rental yield for three years

The developer operates an in-house property division that guarantees a 5% net rental yield for the first three years post-completion. Two specific implications:

• Net (not gross) — most Cyprus rental yield quotes are gross; the net-of-management-and-void figure is typically 3.5-4.5%. A 5% net is meaningfully above market.

• Guaranteed — the yield is contractually underwritten, not projected. This shifts the risk-return profile from speculative to income-anchored for the initial hold period.

Combined, these two attributes turn Nicosia Central Park Residences into a compressed-risk yield instrument that most Cyprus inventory cannot replicate.

Why the location supports the thesis

The tower sits opposite the central Nicosia city park and the diplomatic quarter — the two most reliable long-term rental demand pools in the city:

• Diplomatic tenant base — embassies and international organisations concentrated in the immediate quarter, sustaining rental demand independent of Cyprus economic cycles

• Government administrative catchment — the tower is inside the administrative district that houses professional-class government and legal tenant demand

• Future central multifunctional centre — the abuda project page notes that a new central multifunctional centre is planned "right at its doorstep," which is the specific infrastructure trigger for medium-horizon capital appreciation

Product specification

• 21-storey tower in the heart of Nicosia's administrative and business district

• 16 total units in the current abuda release; 16 available

• 2- and 3-bedroom apartments — available inventory includes 137 sqm 3-bed units on Floors 6, 9 and 10

• Pricing from €860,000

• 5-star hotel-style concierge services

• High-speed fibre connectivity

• Private wellness spa with indoor pools

• Klaus valet parking system — a mechanical automated parking spec unusual in Cyprus residential

• Located at Evagorou 25, Nicosia 1066, Cyprus

Where it fits

For investors comparing Nicosia against alternative Cyprus city allocations: Park Residences Nicosia is the boutique alternative at a lower entry price in the same city. For the wider Cyprus framework: Cyprus Buying Guide for German investors, Cyprus property risks 2026, and the Limassol Intelligence Report for cross-city context.

Frequently asked questions

Q. Where is Nicosia Central Park Residences? A. Evagorou 25, Nicosia 1066 — opposite the central city park and the diplomatic quarter. Q. How many storeys? A. 21. Q. Pricing? A. From €860,000. Q. Is it VAT-exempt? A. Yes — a 19% upfront saving relative to standard Cyprus new-build VAT. Q. What's the guaranteed rental yield? A. 5% net for three years, managed by the developer's in-house property division. Q. Units available? A. 16. Q. Amenities? A. 5-star concierge, private wellness spa with indoor pools, high-speed fibre, Klaus valet parking system. Q. PR eligibility? A. Yes — pricing well above the €300,000 Cyprus Permanent Residency threshold.