Developers in Cyprus and profitable property to buy

Застройщики Кипра и выгодная покупка недвижимости
11 October 2022 Irina Starinskaia
1511

Looking at what is happening today in the real estate market and in the world, many have thought about buying a home or another type of property. Cyprus has become one of the priority areas for investment.

According to PwC, last year plots price grew significantly in Cyprus. The highest demand was for apartments and houses in the price segment of 150-300 thousand euros. Maby investors buy new buildings at the project launch stage.

Rental yields in business regions have almost doubled over the past year, and are rising steadily in others. At the same time, almost everyone with a budget of 100 thousand euros can enter the investment market of Cyprus. There are nuances on the topic of who has the right to receive income in Cyprus, but all owners of the island can count on the prospects for rising property prices.

In this article we will talk about who is building up the Republic of Cyprus today and which property is the most profitable to buy. Note that the DOM has its own database — the most extensive collection of the island — over 30 thousand real estate options in Cyprus!

Cyprus Developers

There are local and foreign developers in Cyprus, there are those who have been working here for decades and are quite new. As a rule, the most reliable ones are those who invest their own capital in construction and thoroughly study the land plots selected for construction. Also, local buyers are of the opinion that local developers can be trusted with the housing issue without a doubt, but foreigners still have to prove the quality of work. 

Developers, which are well-known in Limassol, often also build up Paphos. As a rule, the projects of the most powerful companies are known far beyond the island. For example, Cybarco is famous all over the world thanks to its luxurious Aphrodite Hills golf resort in Paphos and the ultra-modern business center Oval in the Neapolis area, the heart of Limassol. To buy or rent something in these projects, sometimes you have to wait for months, or even for years.

Cyprus Developers Alliance (CDA Group) is a structure that unites 43 stars of the Cyprus construction world. The new 24-storey seafront Ararat Grand Residences in the elite area of Agios Tychonas, Limassol promises to become one of the most grandiose buildings of the island. This is an unusual combination of pompous Art Deco aesthetics, natural materials and cutting-edge energy-saving technologies. 


Options available for sale in the Ararat Grand Residences project

Not all developers of Larnaca are widely known, but among them there are many local companies that sell residential real estate to the indigenous residents of the city with great success: Africanos Property Developers Ltd, Panikkos Livadiotis Group, Nicolaides Properties and others. After the announcement of the start of construction of a new port, developers from abroad began to flock rapidly to Larnaca. As a rule, they build either something grandiose - the QN Kition skyscraper and the Ion Tower business center from Quality Group, or something that investors who speak the same language with them will definitely buy — Plus 21 Roy Terraces from Plus Properties Cyprus from the Middle East. 


Options available for sale in the QN Kition project


Options available for sale in the Ion Tower project


Options available for sale in the Plus 21 Roy Terraces project


The capital of Nicosia is being built by local companies: Mimap Construction Developers offers budget new buildings in the best locations of the city, Green Properties builds affordable homes created with modern green and smart technologies.

All developers in Cyprus are 'united' by a modern approach to marketing, as well as their desire to be open and understandable to any buyer. Basically, they build turnkey projects: immediately after the completion of construction, the houses can be lived in, since they are equipped with everything you may need, even a minimum set of furniture.

How profitable is it to buy property in Cyprus?

Lets now talk about how to profitably buy real estate. It should be noted that new houses in Cyprus are being built taking into account the updated requirements for construction and attention to the energy efficiency of buildings. However, you will not go wrong by investing in promising locations and the precious land of the island of Aphrodite in square meters of secondary housing. Well, if you find some exclusive that can be repaired and breathed new life, you will be doubly lucky.

Favorable ways to pay for real estate

New buildings in Cyprus can be paid in stages.

Off-plan is a popular option among foreign investors - when real estate is bought at the construction stages. Developers offer flexible installment payment schedules and many bonuses to their buyers.

When buying a home at the stage of excavation, you can save a lot. As a rule, 30% of the cost of the object is paid first, then 10% is paid... and so on. The full amount is usually paid within a year, when the project is finally finished. Moreover, the purchase price at the initial stages is 20-30% lower than after the end of the project.

Mortgage

Banks in Cyprus offer many attractive mortgage programs for both locals and foreigners. When using a mortgage loan, the rate is 1.8-5%, and the repayment period of up to 35 years is a very tempting offer. But just to approve the loan, you need to collect a rather weighty package of documents and prove solvency.

Recently, the Central Bank of Cyprus announced that the interest of residents in the mortgage began to fade after the abolition of interest rate subsidies by the state. But in general, this payment method remains very profitable.

Property taxes in Cyprus

When buying a secondary property there is no VAT.

Of course, there is a possibility that the seller will include in the price the tax that they had to pay earlier, but in general, resale real estate is not subject to VAT. Tax on the transfer of ownership Transfer fee compared to 19% VAT are mere pennies.

5% tax when buying a new building

If you want to buy your first property in Cyprus, it is more profitable to buy it in a new building. If the housing is the main place of residence of the owner and is not going to be used as a source of income, the VAT is 5%, not 19%. If you want to sell or rent a property, you will have to pay 19%.

Choosing liquid real estate in Cyprus

Buying a property is always profitable if it is easy to sell in the future. This applies to the following object types:

  1. Seafront Real estate
  2. Properties near educational institutions
  3. Small studios and medium-sized 1-2 bedroom apartments
  4. Properties in the historical center and near iconic objects
  5. Land, houses and apartments in elite and promising areas
  6. Real estate of the middle price segment

Waiting for infrastructure improvement in your area

What is 'illiquid' today, tomorrow may well become 'very profitable'. The question is whether the investor is ready to wait. Who knows if there will be a new plan to improve the infrastructure of the area: renovating the port, building a high-quality hotel, park, shopping center, opening a school or university.

As a rule, it is enough to read the news in business newspapers. Still, real estate is not a securities market, where everything is decided in an instant. Some high-profile projects can also be often frozen for years.

Make major repairs in a dilapidated building

When it comes to a big city, many buyers care about where the housing is located and how it looks inside. Even if you bought a property in Larnaca on the 6th floor of an old building with a broken elevator, this does not mean that you cannot make a profitable apartment out of itin the future. And if there is also a sea view, the investment will be paid off three times faster. In just a few years, Larnaca Marina will become a fashionable area.

Buy a new building at the excavation stage

As we mentioned above, it is more profitable to buy a new building at the off-plan stage. The difference in price is up to 30%, and sometimes even higher. Moreover, by the time the object is delivered, the most liquid options are being sorted out. It may seem strange to many to pay for air, but this is the reality today.

Buy property next to successful projects

Buying a small space or land in a busy place with an atmosphere of success in the air is always profitable.

Even if the previous owner's business did not go well, it is worth considering the offer. If the property is equipped, the price can rise significantly. For example, you can buy a ready-made beauty salon or a sports center.

Over the past few years, the face of Cyprus has changed significantly. All this is due to the perseverance and inspiration of local and foreign developers who bring the experience and knowledge of the world's best specialists to a small island. It is amazing to see how new projects are able to enliven the surrounding space, districts and the general atmosphere of cities.

At the same time, real estate prices in Cyprus are not as high as in other EU countries, and foreign buyers always have a chance to become full citizens of the country.

You can find more real estate options in the DOM Real Estate catalog, and also get advice from professional brokers, learn about new projects in all cities of Cyprus.

Read also:

  1. The best gated residential family complexes in Limassol
  2. General Health Care system of GESY in Cyprus
  3. Villa or apartment: what to choose for living in Paphos?
  4. 10 reasons to invest in Protaras Real Estate
  5. How is it profitable to rent an office in Cyprus?
  6. School near home: options for buying real estate near the most popular educational institutions in Cyprus
Source: DOM
Photos: DOM
Майя
Майя
29 November 2022 3:01
thanks for the information
Олег К
Олег К
3 December 2022 11:15
beauty
Place qoute
New objects

€ 315 000

€ 600 000

€ 1 600

€ 1 260 000

Flat for rent

€ 1 500

Flat for rent

€ 2 100

Apartment for sale

€ 182 000

Flat for rent

€ 1 300

Apartment for sale

€ 125 000

Apartment for sale

€ 182 000
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Адрес: Limassol, Cyprus,
Телефон:+357 25 212 212, Электронная почта: info@dom.com.cy