Gradually, the Island of Aphrodite is turning into a major Mediterranean IT hub.
Since 2022, the population has increased by about 10,000 people, many of whom work in the high-tech industry or aspire to be part of it.
Purchasing real estate is becoming one of the most important questions, especially against the backdrop of a critical shortage of quality rental properties.
From a financial point of view, the main distinguishing feature of IT professionals in Cyprus is that both they and their employers have transparent salaries and income sources well above the average. Additionally, many IT specialists work remotely from home most of the time. Hence, there is a variety of available real estate options on the market.
For those who work from home, it would be more convenient to buy a house with spacious verandas and a garden. For those who are used to spending most of their time in the office, a small modern studio in the center of a bustling city or closer to the seaside might be suitable.
Buying New Property in Cyprus
Modern Cypriot homes are distinguished not only by stylish high-tech design with Mediterranean motifs but also by important quality characteristics, including high energy efficiency and increased earthquake resistance of the construction. In such homes and apartments, it is not too cold in winter, and it's not excessively hot in summer. Furthermore, in a completed project, prices rise by 30-40% from the off-plan stage. So, this is an incredibly profitable investment. When buying your first home in Cyprus, the VAT on new properties up to 200 sq. m is 5%, rather than the standard 19%. The right to a discount is available to all officially resident individuals on the island, regardless of citizenship.
The highest prices for properties in new developments are found in the financial center of Cyprus, Limassol. Here, the price per square meter starts at 2,000 euros per square meter. During the construction phase, a 1-bedroom apartment in the Omonia area with a total area of 64 sq. m costs 139,000 euros (plus VAT). Investment prospects are high, as the area is not only close to the city center and the harbor but also to the new Cypriot casino.
In the bustling capital, Nicosia, the minimum price per square meter is 1,300 euros. A modern 1-bedroom apartment with an area of 76 sq. m in the Tseri area is priced at 97,000 euros (plus VAT). This city has more than a dozen higher education institutions, making such an investment extremely profitable: you can always resell the apartment or rent it out to students.
In the coastal city of Larnaca, the price per square meter starts at 1,700 euros. The "Gates of Cyprus," as it is also called, has incredible prospects thanks to new industrial development projects. Green parks, squares, a yacht marina, sports centers, and several recognized educational institutions make the city even more attractive for investment and relocation for the entire family. Additionally, according to 2023 estimates, the city is one of the most economical places to live for a large family. A modern 1-bedroom apartment with an area of 71 sq. m in the Vergina area is currently valued at 125,000 euros (plus VAT).
It is also worth considering real estate in the city of Paphos and the remote seaside areas with incredible landscapes and panoramas, located west of Limassol. Here, premium-class new apartments are available at prices starting from 1,900 euros. It's hard to find an option without a sparkling pool in the sun. In Upper Paphos, a 1-bedroom apartment with a sea view and an area of 74 sq. m is priced at 147,000 euros (plus VAT).
The eastern part of the island is not known for its vibrant cultural life throughout the year, but golden beaches and azure shores attract those who appreciate maximum privacy like a magnet. In the city of Paralimni, a 1-bedroom apartment with an area of 65 sq. m costs 135,000 euros (plus VAT). The average price per square meter in the Famagusta area is 2,000 euros.
Secondary Real Estate
Ready secondary real estate is rarely considered a profitable investment. However, it can be an ideal option for one's own family. There's no need to wait for construction to complete. You buy and move in immediately – simple and convenient. Properties in need of renovation will be cheaper and can be considered as investment assets. Surprisingly, it's difficult to find 1-bedroom apartments on the secondary market today; most offerings have at least 2-3 bedrooms.
Another distinctive feature of Cypriot real estate is the variety of layouts. What could be more exciting for people with a vivid imagination! The buildings are highly versatile. On the secondary market, you can easily find apartments with separate offices, numerous convenient storage spaces, spacious play areas for children, and other amenities. For example, a 3-bedroom penthouse with a private roof in the Agia Fyla area of Limassol with a total area of 254 sq. m is valued at 520,000 euros.
Buying Property for Oneself with a Mortgage
With an official income above average (from 100,000 euros per year), an IT specialist can easily afford to buy a house or apartment with a mortgage. Considering the convenient and favorable conditions of Cypriot credit organizations, this is indeed a profitable investment, especially when it comes to off-plan properties at the initial construction stage. As mentioned earlier, in a completed project, prices rise by 30-40% from the off-plan stage. This method is suitable for buying any type of real estate: new developments, secondary properties, or land. The down payment typically amounts to an average of 30% of the property's value. The interest rate includes the European Bank's floating rate (approximately 3.5%) and the rate of the lending institution (minimum 1.8%).
Seafront properties
A house on the azure coast from a magazine picture – in Cyprus, this is a reality. Prices for such real estate are 20-30% above average. But how beautiful it is! Waking up in the morning and seeing the invigorating Mediterranean Sea outside your window, feeling the gentle breeze of fresh sea air.
The only thing to consider is that living on the frontline full-time is not the same as spending a week on vacation. The climate by the water is always more humid, and you need to adapt to the whims of winter weather.
Offices for IT Specialists
For those who spend most of their lives in the office, a substantial and modern workspace with all the amenities is essential. Therefore, IT companies opt for Class A offices. There are very few such options left in Cyprus today. Therefore, some companies have taken matters into their own hands and embarked on construction from scratch. The trend of the past year is buying large plots of land for development. Experienced specialists from the largest real estate network agency, DOM, can help save time in finding the perfect option.
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