Cyprus Ranked Best Country in the World to Buy a Holiday Home
Cyprus has emerged as the leading destination worldwide for purchasing a holiday home, according to a new international index released by Compare the Market’s home loan division.
The study assessed more than 50 global locations and placed the Mediterranean island at number one, citing its strong balance of lifestyle appeal, affordability, and climate. Cyprus achieved an overall score of 8.25 out of 10, the highest in the rankings.
Destinations were evaluated using a range of criteria, including local housing prices, weather conditions, dining options, and the number of leisure activities available. Cyprus stood out in several categories, particularly for its dining scene, with 534 restaurants per 100,000 people, and its favourable climate, recording an average monthly rainfall of just 31.89mm.
In its analysis, Compare the Market highlighted Cyprus’s long history, cultural heritage, and association with Greek mythology, as well as its beaches and local food and wine. The island also placed within the top ten globally for activities, offering 334 attractions per 100,000 residents.
Affordability played a key role in Cyprus’s top ranking. The island recorded a relatively low score of 99.6 on the OECD’s real house price index, indicating more accessible property prices compared with many other destinations.
Australia followed Cyprus in second place with an overall score of 7.46, while Malta ranked third at 7.11. Italy and Greece completed the top five, scoring 6.91 and 6.76 respectively.
Stephen Zeller, General Manager of Money at Compare the Market Australia, said choosing a holiday home location involves more than scenic appeal. He emphasised that financial considerations, such as affordability and access to suitable home loan options, are just as important as lifestyle factors like weather and amenities.
He noted that countries such as Italy can be attractive due to comparatively lower property prices within Europe, making financing more manageable for buyers. Zeller added that comparing home loan products across lenders can help purchasers better understand their borrowing capacity, whether they intend to use the property personally, generate rental income, or combine both.
Among the other top-ranked destinations, Australia was recognised for its beaches, landmarks, and wildlife, performing well for climate with an average monthly rainfall of 36.94mm and an average temperature of 22.8°C. Malta scored highly for the number of things to do, offering 414 activities per 100,000 people, alongside mild weather conditions.
Italy stood out for value and dining options, with a strong affordability score of 92.59 on the OECD index and 487 restaurants per 100,000 residents. Greece also performed well, particularly for activities and restaurants, complementing its historic sites and popular island destinations.