Land and plot, what is the difference?
The difference is so significant that there is a risk of buying a place you like and not building anything on it.
Land (if it's not a plot of land) is undeveloped land on which there is no possibility to build anything until the Department of Lands and Surveys zones and approves the infrastructure plan (roads, electricity, water supply, etc.) and green areas.
If you buy a plot, this is a piece of land ready for construction, it has clearly defined boundaries, and the title deed, which specifies the permitted parameters of the future house, such as the building area, the number of stories and the maximum height.
The purpose of the plot/land is another thing that is important to pay attention to when looking for and buying it.
The most common type of land in Cyprus is agricultural. There are lots of agricultural lands. They are in any area of the island, often far from cities and the sea.
On agricultural land, you can start a farm, grow potatoes, and have a bumper harvest four times a year.
As for the construction of a house for living, there are some restrictions.
If this agricultural plot has already been registered in the Land Department, and has the title of owner, then you are allowed to build a house. As a rule, the area of the house should not exceed 10% of the size of the agricultural land...
If you like an agricultural land plot, and you plan to build your dream house on it, ask the Land Department about the neighboring plots, it is possible that a permit for the construction of a cowshed or a pig farm is already being issued on some of them. It is unlikely that you can live happily in such a neighborhood.
Land for commercial purposes
This type of land was originally intended for the construction of factories, plants, etc., and is called an industrial zone in Cyprus. As a rule, the state allocates large plots of land for industrial zones on the outskirts of cities.
Further, there is zoning of land areas. Anyone can apply to lease one of the plots for commercial purposes. The Land Department examines the application, and in case of a positive decision, gives the plot for a long-term period.
As a rule, the minimum lease period for land in an industrial zone during the construction of a plant / factory is at least 49 years with the possibility of renewal.
Land plots for the construction of entertainment facilities
Few locals know that there are special zones in Cyprus allocated for the construction of entertainment facilities.
A few years ago, an investor hoped to build an open karting arena. They tried to find a land plot in Limassol, but this was not possible. Moreover, they could not find a land plot in the city's suburbs either, since all the options found were adjacent to the territory allocated for housing.
The plots in the industrial zone also could not be used for the such projects, since according to the legislation of Cyprus, it is forbidden to build open cultural and entertainment facilities in:
- industrial zones
- residential areas
- agricultural areas.
After all, the investor was offered the only plot between Limassol and Larnaca, but they refused to implement the project there.
Land plots for housings
Recently, it has become popular to buy land to build your dream home. Of course, the most popular sites are those close to the sea, and the best ones are seafront properties.
If you are thinking about buying a land plot for building a house, then it is better to pay attention only to the plots planned for housing construction.
Firstly, when buying a plot of land, you are insured against an unexpected neighborhood in the form of a livestock farm, the same residential buildings will be built next to you, and owners like you will live there.
Secondly, you are guaranteed to get all infrastructure and utility lines such as electricity, water and sewage, internet, paved driveways and sidewalks.
It is also important to note that almost all residential areas in Cyprus have infrastructure facilities and parks.
Restriction for the purchase of land by foreigners
Foreigners can purchase a plot of land, but with some restrictions - the size of the plot should not exceed 4000 m2. But adult family members can buy their own plot, or they can open a company in Cyprus, and purchase a legal entity.
How to choose a plot for the construction of a dream home?
It is best to contact a licensed real estate agency when buying a plot of land for construction. A company specialist will help you find a land plot, take a look at all documents and permits, and also conduct a sale and purchase transaction.
To build a house, after receiving the title deeds, you need to contact a reliable construction company in Cyprus. Carefully familiarize yourself with the real estate the developers already finished, as well as the reviews and ratings. And do not forget to independently control the progress of the entire construction.
The cost of land plots depends on 2 factors: location and purpose.
The most expensive land is seafront housing plots.
For example, a 500 m2 plot of land in the village of Parekklisia, Limassol, 3500 m away from the sea, and with the obtained building permit (percentage of development: 20%) costs about € 60,000.
A 839 m2 land plot in the historical center of Limassol, 250 m away from the sea is € 1,250,000.
The price of land plots for residential construction within the city of Limassol starts from € 30,000 per 100 m2 and can rise to "infinity" if it's seafront land.
A foreigner also has the right to purchase a land plot on credit.
- The most important thing is to know the purpose of buying a plot of land: for building a house, a farm, or as an investment in a hotel, business center, etc.
- Calculate your budget for the purchase of land, as well as the further costs for the housing construction.
- Choose the city and approximate area (s) in Cyprus that you like. If the site is for personal housing, then it should be close to the urban infrastructure (shops, kindergartens, schools), and if it is for commercial purposes, then choose an area where more business centers are concentrated, etc.
- Contact a trusted and reliable real estate agency, as they can help you to search for a plot, as well as to support the transaction.
- Do not take the first piece of land that you see. Learn several options and compare all the pros and cons. A real estate agency is able to make a list of all the advantages and disadvantages of the chosen property.
- Be sure to carry out the transaction with an experienced Cyprus property lawyer.
Do you need advice on the search and purchase of real estate or land in Cyprus? DOM real estate agency specialists can help you to find your property, take a look at documents and help you to purchase it, and it's absolutely free. Your home is near you. Just follow the link.
- Investment in real estate in Cyprus (link)
- Limassol city overview: a place to live, relax and invest (link)
- Important documents (link)