Cyprus is quite a prospective tourism destination (if we don't take into account the 2020 year because of the COVID-19 pandemic around the world).
Every year Cyprus has a huge number of tourists who prefer to rent accommodation instead of a hotel in order to live more privately as they can rent a villa by the sea or they want to cook for themselves. Of course, rental housing in Cyprus is popular not only for tourists, but also for local residents or newly arrived employees.
Therefore, if you buy a home in Cyprus and then rent it out, Cyprus offers you a good investment.
What should you pay attention to when purchasing real estate in Cyprus for further profit?
Basically, property buyers prefer real estate in bigger cities in Cyprus, where there is demand fr om tourists, locals and foreign employees. There are offices and large companies in big cities, and entire infrastructure for life is developed here.
Thus, the home buyer has two options to choose:
- Rent out purchased housing for short-term rent. In this case, the owner can use their housing for themself in the interval between tenants.
- Rent out housing for long-term rent. There is no need to look for a new tenant every time. The owner can choose one reliable tenant and get monthly rental income.
So, if you have decided to buy a home for short-term rent, then it is worth looking at the real estate location. Tourists prefer to rent accommodation near the sea (preferably within walking distance to the coastline), as well as close to modern infrastructure: shops, supermarkets, restaurants, cafes and nightclubs.
The most demanded real estate for short-term rent is one- or two-bedroom apartments, as well as villas for companies - three and four-bedroom. And do not forget that short-term rental housing should be furnished with everything you need: furniture, household appliances, dishes, Internet and television (do not forget about European and Russian channels).
Try to imagine you are a short-term tenant. What would you want? For example, Russians prefer to rent villas on the seashore of Cyprus, on the first (at most the second) line of the sea. While Europeans, for example the British, prefer peace and quiet, as they want to "hide" fr om the hustle and bustle.
Of course, it is worth considering that the most profitable time for renting is the summer season, when there are lots of tourists and real estate is in need like hot cakes. For the winter period, you can live there, as winter in Cyprus is much milder than in European countries. Or rent out housing to tenants only for the winter period. This is also a fairly common practice in Cyprus.
How much can you expect fr om a short-term rental?
Of course, the cost depends strongly on the chosen location, how Cyprus house or apartment is equipped, as well as if the place is luxury. If we look at the average prices near the sea, then you can roughly count that you get these money in the summer:
- Apartments - € 50 - € 200 per day.
- Villa or house - € 200 - € 500 per day.
An experienced realtor helps to set the rental price and find tenants.
But don't forget about housing costs:
- Utilities: water, electricity payment falls on the temporary tenant shoulders.
- Taking care of the garden and pool as well as garbage disposal falls on the owners shoulders.
- Usually the Internet and television are included in the short-term rent price.
- And most likely, the owner needs to buy new dishes, bed linens, and possibly even furniture and home appliances time by time.
What areas can be considered for buying and renting out in the city of Limassol?
Let's start with this question - where is it not good to buy real estate for renting out?
Where is it better not to buy if you are buying residential property for the purpose of renting it out? As we answer this question, it is easier to identify the areas wh ere it is better to buy...
So, the Limassol region is not only the city center and nearest suburbs, it extends even not only to the hills nearby, but also to the Troodos mountains (on the map).
There are some pretty interesting places that Cypriots and tourists love, villages such as:
They look more like old Italian settlements than real Cypriot villages. Also let’s add the village of Kato Platres (on the map), wh ere Cypriots love to hide from the summer heat.
Nevertheless, Omodos, Lofou, Kato Platres and other mountain villages of the Limassol region are connected to their regional center by a winding mountain road, which is too tiring to drive if you need to go to civilization or to the office every day.
In addition, each Cypriot village is a local microcosm wh ere guests come only on holidays or weekends as public transport rarely comes here or is completely absent. The ambulance does not arrive quickly, and the number of products in the supermarket is limited.
Young people leave here as they prefer to study and work in cities, thus the villages’ population is decreasing, and thus it is almost impossible to rent empty houses...
The exception is two hot summer months - July and August, but such a short period of time is hardly sufficient for an owner who has bought real estate in order to earn money. And also do not forget about Christmas, when everyone rushes closer to the snow and rents houses in the mountains. But again, this is only for the Christmas holidays.
In some suburbs you can buy real estate...
Let's name the suburbs of Limassol, which are popular among buyers, including foreigners.
Souni (on the map) is a very beautiful village consisting only of villas built among pine and carob trees, located just 10 minutes from the city. The houses here are not very expensive and are in demand among Russian-speaking tenants.
For example, buying a three-bedroom new house (2020), with a small plot (440 m2) and a swimming pool, will cost you about € 260,000. And the rental price will depend on what will go in the complex with the house (furniture, appliances or empty).
You can view a detailed description here
Or nearby suburbs such as:
- Pyrgos (on the map)
- Pareklisia (on the map)
- Kalogiri (on the map)
- Agios Tychonos (on the map)
- Germasogeia (on the map)
- Agios Athanasios (on the map)
For example, purchasing a luxury six-bedroom villa in the picturesque village of Pareklisia for €2,500,000, with a swimming pool and a giant plot of 5686 m2, you can rent it out for € 12,000 per month.
Details of the villa are available here
Another argument that can be considered when looking for a property to invest in real estate is the proximity of housing to schools.
For example, these English schools are famous in Limassol, such as:
- Logos School of English Education
- The grammar school
- Foley's School
- American Academy
- The Heritage Private School
It should be borne in mind that some European and Russian families choose Cyprus and Limassol precisely as they want their kids to study in English schools.
These tenants are looking for comfortable apartments or villas with 3-5 bedrooms.
Even 5 years ago, a foreign investor, while buying real estate in Limassol, hardly looked towards areas with a compact population of Cypriots. Now the situation is changing rapidly.
Refugees from Asian and African countries, who need not expensive housing in any area, received Cyprus residence permit. Therefore, if your budget cannot afford a villa with a pool next to one of the English schools, you may pay attention to apartments and maisonettes in the following areas:
- Agia Fyla (on the map)
- Agios Ioannis (on the map)
- Agios Nicolaos (on the map)
- Apostolos Andreas (on the map)
- Agios Nektarios (on the map)
- Zakaki (on the map)
- Omonia (on the map)
As we already mentioned the property which is located near English schools and in areas populated by locals, we smoothly moved directly to the city. The exception is The Heritage Private School, which is located in the suburb of Palodeia (on the map).
Before starting a review of the areas of Limassol city, let's note one important thing. If you are interested in renting out your property seasonally, during the summer period, your real estate can be only in the Tourist Zone of the city.
Every property within walking distance of the beach in the Tourist Area is in high demand among tourists from May to October.
There are few tourists in Cyprus from October to May, and so that your property does not become vacant, you can look for tenants for this period with a monthly payment in advance.
Pay attention to the areas:
- Kanika (on the map)
- Germasogeia Tourist Area (on the map)
- Parekklisia Tourist Area (on the map)
- Pyrgos Lemesou Tourist Area (on the map)
- Mouttagiaka Tourist Area (on the map)
- Agios Tychon Tourist Area (on the map)
The real estate in Marina deserves special mention, as this area is located in the historical center of Limassol, on the territory of the old port.
You can buy apartments in Marina, as well as townhouses or villas with yacht berths. Yachts from Qatar, the United Arab Emirates, Israel moor here every day, and, as a rule, guests rent luxury real estate in the Marina for several days or even months.
You can see the available real estate here
Many years of experience of communication with buyers gives us the right to assert that today every not very old real estate in the city of Limassol is always in demand among tenants.
If you are looking for real estate or you want to rent out your housing, contact the DOM Real Estate Limassol agency. Our specialists advise for free. Just follow the link.
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Photos: pixabay.com, DOM LiVE