Thanks to the 15 years of rapid urbanization, the island of Aphrodite has grown to European standards, turning from a province into a modern international center.
This is mainly because of residential property development.
People who come to the island can now choose new modern housing not only in 'big' cities, but also in quiet villages. Apartments and houses of a modern type have a number of features that have arisen as a result of the development of construction technologies, many years of research on the real estate market, climatic conditions and geodesy of the lands of Cyprus. As you may know, the newer the building, the more positive its characteristics. In general, projects from 2010 can be conditionally attributed to new-type houses.
To understand the picture of the new property market, let's take a look at prices.
Today, the smallest and cheapest new building in the database of the DOM Real Estate agency in Cyprus is a 41 m2 studio in the capital of Nicosia, not far from the main buildings of the University of Cyprus, is estimated at 95 thousand euros (+ VAT). At the same price, on the ground floors, you can buy 1-bedroom apartments of 60 m2 in new residential complexes in the Latsia area of Nicosia and in the area of the village of Derynia in Famagusta.
The most expensive new building in Cyprus today - a luxury villa in Limassol in a quiet area of Agios Tychonas - is estimated at 16 million euros (+ VAT).
At the same time, the average price per square meter in a new building in Cyprus is 2,000 euros per m2.
Anyone can buy a new building in Cyprus
Despite the fact that the land in Cyprus is a valuable resource - the area of the island is only 9251 km2 - everyone can buy property here. There is just a small but: if you are a foreigner, the right to own each specific object must be approved by the Council of Ministers of Cyprus. Reputation integrity is important. The screening process takes up to two months. The letter of ministers is attached by the buyer to the package of documents upon receipt of the title deed, certificate of ownership.
Permanent Residence Program
As you may know, when investing in new real estate in Cyprus from 300 thousand euros, the buyer can have the residence program for the whole family. Thus, the government supports the inflow of capital from abroad. You can buy one or more new objects of your choice. For example, a 1 bedroom apartment in Nicosia and a 2 bedroom apartment near the center of Limassol. At the same time, you can leave the island and travel wherever you want and you can.
Cyprus property 'formats'
The most popular types of real estate are: studios, apartments, houses and villas, townhouses, penthouses, maisonettes and beachfront bungalows. Locals prefer apartments and houses for permanent residence. New building regulations in cities require mandatory covered parking.
Modern minimalist design of new buildings
Most of the new buildings in Cyprus are stylish and neat, thanks to the laconic high-tech design and cubic shapes. Such buildings are well sold, in part or in full.
In the high-end sector of the new-build market, more diversity can be seen. These are buildings in the avant-garde styles of the digital age, and skyscrapers with elements of classicism of the Roman heritage on the facade. In general, architects strive to create buildings that fit into the natural landscape of the island and allow you to admire its beauties.
The price of a new building increases with each floor by an average of 4%
This unspoken rule applies to apartment buildings. Despite the fact that the ground floor floors are occupied by commercial premises, parking and storerooms, the first residential floor in Cyprus is always cheaper than the next one, all other things being equal.
Just take a look: an apartment of three bedrooms and an area of 112 m2 on the ground floor in the Aradippou area of Larnaca costs 178 thousand euros (+VAT). On the second floor of the same building, the same apartment costs 182,000 euros (+VAT).
In Nicosia, in the area of Lakatamia, a 3-bedroom apartment of 100 m2 on the ground floor is estimated at 188 thousand euros (+ VAT). On the second floor there is an apartment of the same 190 thousand euros.
In Limassol, 2-bedroom apartments in new or under construction houses are available at this price. In the area of Kato Polemidia, a new 2-bedroom apartment of 95 m2 costs 179 (+ VAT), in the area of Agia Fyla a similar apartment on the second floor costs 194 thousand euros (+ VAT).
No white box
In Cyprus, there is no concept of “white box”, when a buyer rents an apartment with bare walls without finishing. The cost of new buildings includes a ready-made layout with the ability to make changes at the initial stage of construction. Developers also take care of the interior and exterior decoration, plumbing, and sometimes the installation of furniture in the kitchen.
Air conditioners are often included in the price. Thus, even with the minimum configuration, you will be comfortable in your new home from the first day. And do not forget about the presence of our own covered parking on the ground floor.
Time and science do not stand still. Engineers have already developed earthquake-resistant structures for buildings in a high-risk area, which is considered to be Cyprus. Modern developers of the island are required to comply with new safety standards. Buildings of the old housing stock are also inspected, improved and updated in accordance with the new requirements, but it is difficult to achieve the level of earthquake resistance of new buildings, with all the desire.
An important distinguishing feature of the new-build market is that most of the presented buildings are designed for year-round use, and not just summer holidays.
The energy efficiency of most new buildings in Cyprus (the rational use of energy resources for space heating and cooling) is rated classes A and B. This means that the residents of these houses will pay for energy much less than if they lived in a standard house of the old housing stock without additional insulation. Electricity in Cyprus is expensive, so it is not rational to heat summer maisonettes around the clock.
Many high-end new buildings are equipped with a VRV air conditioning system to maintain a comfortable building temperature. The bathroom and bedrooms have underfloor heating. It is much easier to buy housing, where experts have foreseen everything in advance.
It should be noted that in Cypriot houses, the windows in the bedrooms are most often small, as shaded as possible, and the exit to the veranda from the living room is sliding panoramic windows-doors to the floor. It is a standard solution for the efficient use of resources and sunlight. Architects of new buildings have adopted this type of glazing as the most suitable for Cyprus.
Possibility to install a swimming pool
The presence of a swimming pool undoubtedly increases the value of the property. But in Cyprus there is an interesting option, the ability to install a pool on the plot for an additional fee. For families with young children, a pool is not the first necessity, but when they grow up and learn how to swim, it is more needed. As a rule, this option applies to new houses in modern residential complexes in the suburbs. This advantage will not cost the buyer a lot of money, but, you see, the opportunity to choose is always inspiring. In the Pervolia area, a 3-bedroom house with a plot in the residential complex Anemona Villas under construction costs 330 thousand euros. On request, it is possible to build a swimming pool and a barbecue area in it for an additional fee.
5% VAT on first accommodation
In order to harmonize the Cypriot legislation with the European one, 19% VAT has been introduced for new buildings. But there are some good exceptions.
VAT will be only 5% if the property in Cyprus is bought for the first time and for permanent residence. Note: the discount is valid for the first 200 m2 of the area, the housing will become the main residence in Cyprus and will not be rented out for the first 10 years of ownership.
In Cyprus, there are a number of developers from whom you can immediately buy housing with 5% VAT, and developers from whom you need to pay 19% VAT upon purchase, and later, after obtaining permission from the government, the difference is returned. The procedure takes about two years.
At the same time, 90% of transactions in the Cyprus new-build market are as follows:
- A contract is signed for the total purchase amount marked "+VAT".
- When clients make a down payment, they pay approximately 30% of the full price of the property and 19% tax on that amount.
- In parallel with the transaction process, within 3-4 weeks, paperwork is issued - a purchase permit with a 5% tax rate.
- Further, this permission is shown to the developer. They make a recalculation for the entire remaining and deposited amount.
Thus, in any case, when buying a first home in a new building, the tax is 5%, not 19%. But you need to be prepared for the fact that sometimes the procedure takes about two years.
The tax authorities demand to pay 19% tax for the area of the first housing in excess of 200 m2. How is the calculation done? We summarize the amount of 5% tax on the first 200 m2 with the amount of 19% tax on the remaining meters.
If the new owner of a new building changes their mind, wants to sell the apartment before the 10-year deadline or decides to rent it out, they are obliged to notify the Department of the Ministry of Finance and pay the rest of the tax. This takes into account the previously deposited amount at a preferential rate, and interest is charged for the period of time that the buyer did not reach the mandatory 10 years.
Possibility to pay in installments or with a mortgage
A number of developers in Cyprus offer such an option as installment payment. This is a guarantee that the money will not be lost if the company goes bankrupt or, for some reason beyond its control, is forced to freeze the construction site.
The payment schedule is compiled individually or according to a specific scheme. On the eve of payment, you can inspect the building and ask questions to the project manager. On average, construction takes a year. New generation houses do not require additional shrinkage. You can move immediately when permission is received from the state inspectorate that checks the quality of new homes. But sometimes it takes time to process the documents of ownership. In different municipalities of Cyprus, the procedure can take from several months to several years.
Individual developers sell housing to clients on mortgages. Given the low interest rates from 1.8 to 5%, this is very profitable. But in this case we are talking about the final stages of construction and finished houses.
DOM Agency helps clients to complete the transaction correctly and advises at all stages of buying a new building in Cyprus: from choosing a developer to moving.
Interested in housing in Cyprus? Check the DOM Real Estate website! The agency's website contains the largest real estate database in the country - more than 30 thousand residential and commercial properties throughout the island! Here you will find information about the latest development projects and local developers! Choose and contact professionals who will help you make the right choice!
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