Cyprus is often referred to as the island of millionaires. At least, many locals aspire to such a lifestyle.
Let's talk about what makes elite real estate in Cyprus interesting and how to recognize it among other constructions.
By the way, just one newly arrived wealthy buyer of super-elite real estate can significantly boost the economy of this small but proud European country.
According to the Heritage Foundation, Cyprus is currently ranked 18th in the top 20 countries with a free economy. Out of 176 countries evaluated, criteria included the rule of law, government efficiency, trade freedom, business freedom, investment freedom, property rights, tax burden, and fiscal health.
The island nation remains highly interested in attracting investors from around the world. Following the cancellation of the "Golden Passport" program in 2020, the number of buyers has shifted towards quality rather than quantity. Additionally, a 5% VAT rate (instead of the standard 19%) can now be applied only to the first 200 square meters of new residential properties, rather than the entire property. All applications for the discount are considered on an individual basis. Buyers seeking to save on taxes tend to bypass the luxury real estate sector and opt for options priced from 300,000 to 400,000 euros. It should be noted that the initial idea of implementing a 5% rate was not only to stimulate the economy and attract additional investors but also to support the middle class of the local population when purchasing their first homes.
Parameters Defining Cypriot Real Estate as Elite
In recent years, Cyprus developers have actively sought to cater to the interests of investors interested in Cypriot passports, which essentially open all political and economic doors globally. Among the new construction projects in the second decade of the 21st century, there are many luxurious apartments and individual villas priced from 2 million euros. This was done to simplify the process for wealthy investors. The rules also allowed the purchase of multiple real estate properties from a single developer for a total of 2 million euros, among other concessions for those who don't seek the easiest path. As a result, there are more modest options available in this sector today. Overall, the pricing of elite real estate today is determined by the market. On average, elite real estate costs 1 million euros today, or 4,000 euros per square meter. These are unique commercial properties, houses, and apartments characterized by advantageous locations, beautiful views, elite building materials and finishes, well-thought-out modern design, and equipped with the latest technology.
The most expensive Cypriot real estate today is located in the city of Limassol, along the southwest coast.
In the under-construction 27-story Dream Tower Limassol skyscraper, a luxurious 4-bedroom duplex with a total area of 672 square meters and panoramic sea views, located in the heart of the city in the Agios Tychonas area, is currently valued at 62.265 million euros (+VAT). The project is expected to be completed in 2024.
Properties available for sale in Dream Tower Limassol
The most expensive private house is located on the seafront in the same popular and quiet Agios Tychonas area, in the Halcyon Complex. This is a 3-story, 4-bedroom mansion with direct access to the sea, with a total area of 800 square meters and a plot of 1,115 square meters. The cost of this property is 15 million euros.
The most expensive commercial real estate is the 7-story futuristic Wall Street Business Center with stunning design, spacious offices, and a rooftop garden. It is located on one of the busiest streets, Spyrou Kyprianou, in the city of Limassol, has a total area of 12,250 square meters, and is priced at 46 million euros.
Properties available for sale in Wall Street Business Center
According to the Cyprus Statistical Service, there have been no applications for the construction of elite skyscrapers in 2023. This is likely due to a decline in demand and market saturation. However, no one plans to lower prices at the moment. Some buildings that were not sold before 2020 are being converted into hotels and income-generating properties. On the other hand, elite low-rise buildings continue to be in demand.
Do buyers in Cyprus really find what they are looking for or compromise?
Cyprus is not Malibu; it's peaceful and cozy family villages on the coast of the Mediterranean Sea, in the mountains, on picturesque hills, or closer to bustling urban centers. It's a great place to live with a large family, receive an education, and build a business. Nearly everyone understands English here, and many residents are proficient in 2-3 additional foreign languages. The official language is Greek.
Far-sighted investors see the prospects of the island's comprehensive development and the real estate sector as a whole. One of the most important conditions offered to buyers of Cypriot real estate is property ownership, which is granted to foreigners by the Council of Ministers (a procedure that takes approximately 2 months) after submitting an application. Fifty years ago, Cyprus was a true, colorful village where people often traveled on donkeys. One must understand the colossal changes that have occurred in this short period. Today, it is a country with European values, strong ties to the traditions and culture of early Cyprus, and a legal system largely based on the British model. In 1976, the capital, Nicosia, was divided into two parts during a political coup, and this fact still has a restraining influence on unhindered economic growth.
Comparing the leading Cypriot cities with major global financial centers is simply pointless. However, in its miniature size and convenient location in the Mediterranean, the island has its advantages:
- You can easily reach almost any part of Europe, America, and Asia from Cyprus's airports.
- Traveling to any part of the island is easy and convenient, with high-quality roads and almost no traffic jams.
- Cyprus offers a combination of affordable education and a mild Mediterranean climate.
- The opportunity to see the sea every day is priceless, as happy homeowners on the coast would attest.
- There is no winter in Cyprus, except for the mountain resort of Troodos.
Living on the mainland and on the island are incomparable experiences. Some find one acceptable, while others seek alternatives on solid ground.
What's in elite real estate in Cyprus that you won't find in other countries?
When comparing elite real estate in Cyprus with offerings from other countries, experts note the relatively low cost of even elite properties, transparency and security in transactions, social safety, and the aesthetic value of Mediterranean real estate harmoniously situated on the lands of a European state.
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