Investing in Cyprus: choose your city for buying real estate

Инвестиции в Кипр: выбор города для покупки недвижимости
2 June 2020 Kirill Ravchenko

It is impossible to unconditionally name the most profitable city in Cyprus for investing in real estate. All localities have their advantages and disadvantages. Nevertheless, Cyprus real estate market experts have long believed that Limassol and Paphos are in the best places.

The cities of Cyprus can be easily put on the rating according to their demand. It turns out that the most demanded housing and commercial real estate is in Limassol.

1st place: Limassol

Limassol has many names: “the second capital of Cyprus”, “the seaside capital of Cyprus”, “the main port of Cyprus”. All this allows us to conclude that Limassol is an active, developing and large city with a well-functioning infrastructure.

The main feature of Lemesos (the name of the city in Greek) is its multinationality. A lot of people from all over the world live here. At the same time, tourists are not even taken into account.

Even in winter, in the off-season, the city remains lively and active and investors who have invested in Limassol real estate make profits all year round. There is no such thing anywhere else in Cyprus as seasonality is felt everywhere, even in the "non-marine" Nicosia.

What else is attractive in the city for real estate investment in Limassol:

  • Housing prices in Limassol are the highest, but the demand for houses and apartments is great. The purchase will pay off anyway
  • The city is big, which means there are a lot of areas where you can find your home. There are apartments in seaside high-rise buildings, seafront villas, quiet houses in the suburbs and apartments in convenient neighborhoods, away from the tourist areas. Accommodation in Limassol can be found for any lifestyle!
  • If you have a plan to rent out housing, income is guaranteed as there is demand in any season
  • Limassol is a huge international business place with great opportunities. It is easy enough to find yourself here, despite the competition. Well, whoever did not become a competitor will become a partner.
  • Business in Limassol is not a problem to the happy life of the whole family. The city is ideal for living with children, adult relatives and elderly parents. Kindergartens, parks, playgrounds, schools, gyms, hospitals and private clinics are all within easy reach. Moreover, many of them have native English-speaking staff.
  • Limassol is full of entertainment. It does matter if an entrepreneur resides in Cyprus permanently and with family. Cultural, sports, club life in Limassol is not a myth, but a reality, unlike other cities on the island
  • Commercial real estate in Limassol is in the same demand as residential. Investments in it will pay off quickly
  • All the necessary government (for example, tax) and private offices (notaries, lawyers) are also Limassol. You don't need to travel far. Paperwork and transactions are carried out quickly.

Investing in real estate in Limassol does not necessarily mean buying a home with its subsequent renting out or resale. Someone buys housing to do business in Cyprus, someone just wants to come to the island regularly as a tourist.

These are different options, but they all work in Limassol.

2nd place: Paphos

Paphos is a special city in Cyprus. Why? It's all about its "distance" from all other large cities, as well as the capital. Of course, this is a bit of a fanny 'distance', but in small Cyprus it is quite a decent distance.

Paphos, being a western city, even has a slightly different climate western city as the sea is always slightly colder here, there are often strong sea winds. And also nearby is the Akamas Nature Reserve, an island of luxurious greenery right on the coast.

The third characteristic of Paphos is its “ethnic composition”. The city can be considered the center of a gathering of British people who love to relax or even live here. Since 2018, Russian investors have begun to choose the city, sensing that there are many unoccupied places here for them.

Why the city is interesting for those who want to invest in Paphos real estate and receive passive income:

  • The city's infrastructure is focused on tourism. Therefore, the most profitable business so far is the one related to the leisure and entertainment sector.
  • There is an airport.
  • In terms of prices, Paphos real estate is slightly better than Limassol. At the same time, the demand here is moderate, which means that the most profitable is not resale, but rent out
  • Business in Paphos is not in its infancy, but also not at a developed level. This means that there will be minimal or no competition in certain areas.
  • Paphos is an ancient city with a long history. The culture is well developed here.
  • It is comfortable to live in Paphos with family and children: the city is equipped with everything you need, from kindergartens and schools to medical institutions. By the way: in Paphos, you can send your child to a British school with a British school program
  • Paphos is a sports city and many athletes live and train here. Fortunately, the climate allows you to do this all year round. It also opens up opportunities for investments in sports grounds, events and centers.
  • Paphos has always been and remains a favorite destination for foreign investors. The owner of a Paphos business will not be left behind and will be able to make useful and profitable connections.

An easier option is to rent out housing by the sea. Paphos is in demand among tourists from March to November, and now the local authorities are doing everything to keep the city interesting in the off-season. Investing in Paphos real estate is a good option.

3rd place: Nicosia

Cyprus is surprising in that its capital, Nicosia, has not been a leader in real estate sales for many years. The thing is that the city is far from the sea, which means that tourism here is only cultural.

Basically, the locals are interested in buying real estate in Nicosia: they like to live in the administrative center of their republic. It is the local residents who purchase housing in the capital, rent it out, or move in.

For foreign investors, Nicosia is interesting for commercial real estate as this is the place that brings excellent profits and is in high demand. This also includes land plots, since land in and around the capital is very highly valued.

Here are a few more industries in which Nicosia can satisfy investors:

  • Restaurant or hotel business
  • Bureaucracy (all migration requests are processed in the capital, therefore, employees who speak foreign languages are required)
  • Entertainment business (oddly enough, the entertainment sector, including for children, is not very developed in the capital).

When making real estate transactions in Nicosia, it must be borne in mind that the main language of communication is Greek.

4th place: Larnaca

Larnaca is a large city in Cyprus, which for some reason is still not interesting to foreigners. And if tourists from abroad come with pleasure to rest here for a week or two, then only a few want to relocate to Larnaca.

There is no active construction here, so the real estate in Larnaca is mostly secondary. Local residents are interested in it, and foreign investors see no benefit in local housing.

But some visitors still choose Larnaca as a place to live, and here's why:

  • Developed infrastructure of a big city
  • There is a large airport and seaport
  • Peace and quiet about Limassol and Paphos
  • Warm and clean sea nearby.

Basically, buying real estate in Larnaca is beneficial to those who are going to permanently reside in the city. An apartment in Larnaca costs significantly less than an apartment of the same size and location in Limassol, Paphos and even Nicosia.

Also, some analysts suggest that Larnaca may become the "new Limassol": foreign investors will come here in future, and skyscrapers with luxury apartments will appear on the embankment. True, no one says when this will happen - in a few years or several decades.

The conclusion is simple: Larnaca is a good place to live. As an investment center, the city is not yet very developed, although some companies have already found their offices here.

5th place: Ayia Napa (Famagusta district)

Almost all business in Napa is seasonal. While tourists flood the town, shopkeepers' profits flow like a river. At the end of November, Ayia Napa falls into a state of suspended animation until the end of March, until the new tourist season begins. And there is no money at all at this time.

Nobody makes serious investments here as the scale is not big. The only option is to buy real estate for winter living. For example, the owners spend the quiet time of the year in their own housing, and in the summer it is rented out at very favorable prices.

Obviously, Limassol and Paphos are the winners for investing in Cyprus property. There are enough housing options for prices, locations, primary-secondary and other criteria. However, individual investors think about Nicosia, Larnaca and even Ayia Napa.

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