Without a doubt, the real estate market in Cyprus is one of the most inspiring and attention-grabbing options to invest in for different purposes. The island has successfully recovered from the economic crises, which means it offers numerous lucrative opportunities for foreigners to purchase residential property in the country.
According to statistics, this market is prone to success — its current market size of over $115 billion will accelerate its growth with a CAGR of 4.05%. In turn, the Cyprus real estate 2024 will surpass the level of $135 billion by 2028. If you opt for a stable property environment with tax benefits and other lucrative offers for investors, you’ve come to the right place. Let’s dig into the market’s peculiarities. Mind the gap!
Cyprus Real Estate Sector Analysis: Pros and Cons
Whether you are interested in real estate Cyprus rent or further reselling, now is the time to check the offer’s incentives. Here are a few reasons why making this deal will be more advantageous than considering property-related projects in other European countries:
- You won’t face a language barrier and be able to get all the documentation and business-oriented deals done in English.
- Cyprus is widely known for its excellent healthcare and stable economy.
- As an investor and potential resident of the country, you will surely be protected by the Cyprus strong legal foundation.
- Of course, the region’s climate conditions are stunning for both mountain and beach relaxation enthusiasts. The tourism industry is a massive part of the country’s economy, which increases the local property’s potential in the long run.
- You will be an eligible member of the program to obtain EU citizenship and passport.
- Another incentive is that the country boasts a marvelous road network, which means its infrastructure is high-end as well.
- It stands out with its easy access to sea and air routes connecting Arabian and Far East countries with Europe.
On the other hand, the lack of understanding of how this real estate market works can lead to significant losses at your end:
- You don’t check whether all the relevant costs are a part of your investment strategy. It isn’t only about the target property’s price — it is also about the project-associated legal fees, stamp duty, and much more.
- The Cyprus Law provides a provision for compulsory heirship, although specific types of foreign homebuyers are permitted to circumvent these laws and form a Will to distribute the assets as they choose. It is critical to contemplate your Will shortly after you purchase an estate in Cyprus.
- You neglect the requirements of your contract of sale. Whether you delay its signing or the must-have deposit to satisfy its conditions, you will be prone to paying penalties and losing crucial legal incentives.
What You Should Know About Cyprus Real Estate Prices
Start by comparing property listings in the largest and most renowned marketplaces in the country. That’s how you will see average ranges for a certain type of real estate you are looking for. There are thousands of assets available — from flats and penthouse apartments to villas. The target price is a combination of several factors:
- the property’s location;
- the number of rooms;
- how innovative its interior and exterior designs are;
- the proximity to nearby infrastructural assets, etc.
Depending on your investment goals, consider more non-common properties to buy or rent:
- hotels;
- parking lots;
- offices and retail centers;
- industrial property;
- land.
With VAT included, the prices can start at around €450 thousand and up to millions of euros. Nonetheless, smaller apartments with older construction plans can cost €150 thousand.
Where to Buy Cyprus Real Estate in 2024
Of course, your budget and purchase goals will define what areas offer more benefits for your real estate investment Cyprus. Here are some of the most advantageous areas to take into account for newcomers in the field:
- Larnaca — perfect for its entertainment and recreation solutions.
- Nicosia — a stunning business center with a steady demand for commercial properties and businesses in the country’s capital city.
- Paphos — a rapid industrial and economic growth.
- Limassol — appreciated for its tourism opportunities.
Tips and Suggestions to Get a Successful Real Estate Investment in Cyprus
When it comes to purchasing Cypriot property, it won’t be extra to bear in mind the following:
- Don’t forget about energy efficiency certificates — this document represents the results of the property’s assessment procedure and provides its rating based on its lighting, cooling, heating, and other systems’ productivity. Its cost ranges from €200 to €450. Checking this parameter in advance
- Don’t rush to complete the deal — comparing prices from several sellers is a must-have component of your market research. Even if you consider two similar options with alike specifications, the price ranges might be drastically different. Big developers in Cyprus tend to sell their property at higher tags.
- Consult with independent lawyers — another crucial part of your strategy should be cooperation with a skilled and seasoned third-party expert in the local market and its peculiarities.
- Don’t take pre-contractual guarantees regarding returns for granted — those who purchase the target asset for investment purposes have to inquire about the backup of the promised ROIs. You can ask whether such data can be provided in a written format to guarantee the purchase’s long-term value. It is best when these claims rely on professional studies.
Wrapping It Up
Is real estate Cyprus a good investment option? The answer is straightforward — it offers several incentives for people who know what to expect and look for.
At the end of the day, your project’s success depends on how thorough your initial preparations are. If you don’t want to lose this expensive battle, consider the legal and economic background of the deal in more detail. Not only is it essential to prepare all the required documents, but you should take a deeper insight into the allocated expenses for the purchase.
