Today we are going to talk about property in Paphos with experienced Real Estate broker - Maxim Arte. The occasion is significant. Now the prices for primary and secondary properties are at about the same level, but if you dig deeper - primary houses have a lot of advantages.
- Hello Maxim! Tell us, what do you think are the main differences between new buildings and secondary properties?
Hello! The comparison here goes far beyond price. Of course, secondary properties are often associated with finished renovations and infrastructure, but modern new properties in Paphos are turnkey. They come with fitted kitchens, quality finishes, wardrobes, modern flooring and many developers include white goods, under floor heating, VRF systems, alarm systems, solar panels and even furniture. By law in Cyprus, new buildings must be delivered with basic finishes: fitted kitchens (without appliances), wardrobes, plumbing and provision for the installation of air conditioning, underfloor heating and electric car charging. In this case, the buyer only has to buy appliances and mobile furniture. Interestingly, developers in Paphos often go further than the standard solution, which is a big advantage.
- Can I give you an example? Let's say we compare two apartments of the same size in the same area, what will surprise you about the first one?
In the Primary, you get all the latest: double-glazed aluminium windows, well-designed thermal and water insulation, and the opportunity to choose finishing materials with the developer's designer. All this is included in the price, whereas in many secondary properties the repairs are outdated and the appliances are already 'tired' from years of use.
- And what about VAT? Isn't it a Greek myth that secondary properties are sometimes charged 19% VAT?
If the secondary property is not older than 5 years and has not been officially rented out for two years (a relatively new law), it is subject to 19% VAT. The law does not allow this to be reduced below 5%. The savings that are often talked about turn out to be illusory. In addition, by buying at an early stage of construction, you can save up to 30% of the total amount, as well as choosing colours, materials and even doing a little renovation - savings that are really impressive!
- But secondary properties have their own advantages. For example, readiness to move in. You can move in immediately without having to wait for the building to be completed. What do you think about this?
Secondary homes are often ready to move into and the infrastructure of the neighbourhood is already in place. However, transactions with secondary properties can be delayed by 2-5 months, which involves risks and inconveniences. On the other hand, when buying a primary property, there is the flexibility of staged payments: 30-40% of the deposit plus VAT, and then additional payments as construction is completed. In addition, banks value new buildings more highly and offer loans on more favourable terms.
- What about architecture and floor plans? It is often said that secondary properties in Cyprus have spacious layouts and high ceilings, which are sometimes lacking in new buildings.
Yes, the spaciousness of secondary properties is their strong point, but modern new buildings win because of their well-designed functionality. The architecture of primary properties is designed with modern requirements in mind. Every square metre is used rationally, and opportunities for technological improvements, such as charging for electric cars, are almost unheard of in older housing.
- What about the legal aspects? Many buyers worry about title deeds and flexibility in negotiations.
The title deed for secondary homes is already in place, of course, but transferring the title can cost around 4% of the transaction value. This is a sort of Cypriot tax on the transfer of title. In the case of new properties, the title deed is usually not yet in place, but will be within 2 years of completion. The main thing is to deal with reputable developers and you can be absolutely sure that the title will be issued. In addition, private secondary sellers are often less flexible in negotiations, while developers offer a convenient payment scheme: the remaining amount is divided by stages of construction without unnecessary interest, and many developers accept payments in cryptocurrencies and have accounts in different countries.
- Primary seems to win on almost all counts. Are there any cases where secondary might be a better choice?
Of course, if you come across a truly unique property, with an exclusive location or an original concept, such as The Residence, Limassol Marina by Cybarco or Opera by the Sea by the Askanis Group, then the secondary market deserves attention. But in the overwhelming majority of cases, modern new buildings definitely win in terms of features, quality of finishes, technical solutions and investment attractiveness.
- It is said that in new buildings not only is the house more comfortable, but the inhabitants literally begin to glow - a morning charge of vitality, even a tan, a snow-white smile... Is this a joke?
Ahahh, well, I've even heard that first home buyers start to lose excess weight, wrinkles start to disappear and wages start to rise! It's a joke, of course, but still, a modern, quality property can create such an atmosphere that life becomes easier and more enjoyable. This is something like the 'broken windows' theory formulated by American sociologists James Wilson and George Kelling back in 1982.
- Maxim, thank you for your frank and detailed account of the Paphos market. Let's summarise. If a client wants modern comforts, flexible payment terms, high technical standards and the prospect of rising costs - he is better off choosing apartments in new projects. And if you like unique architecture with a historical flavour - you should look at the secondary market, but only if it is a truly exceptional project.
Absolutely right! The main thing is that the choice should be informed and in line with your priorities. My job is to help my clients make sense of this diversity so that they can find a home that inspires them every day. Remember: new builds will get more expensive over the next 5-7 years, while the secondary market will only get cheaper.
- Thank you, Maxim, for an interesting conversation and useful tips. We hope that our readers will find the best solution for themselves in the world of Cyprus property. See you again!
Thank you very much! May everyone find the home of their dreams - be it a new build primary property with the best technology or a unique secondary property with a historic flavour.
Examples of primary properties in Paphos
New 1-bedroom apartment of 54m2 in Universal Paphos for 162 500 euros + VAT. Ceilings of 3.2m, high quality finishes, double glazing and a very convenient location - within walking distance of the town's infrastructure.
2-bedroom apartment of 83 m2 for 390 000 euros + VAT in the area of the Tomb of the Kings of Paphos.
This project already has amenities such as a gym, swimming pool and sauna; the price includes underfloor heating, VRF air conditioning, alarm system and white goods.
A new villa in Konya area of Paphos of 164 m2 with a plot of 261 m2 at a price of 530 000 euros + VAT. With swimming pool, sea views, underfloor heating, VRF air conditioning, double glazing and a choice of colours and finishes.
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