Land in Cyprus is a valuable resource.
Nevertheless, it is available not only for citizens of the country but also for foreign investors. Let's talk about how not to miss and buy the most attractive piece of land.
According to the Cyprus Land Department, 2023 plots for residential development are in high demand. This is one of the most popular ways to preserve and multiply capital. Many people are inspired by the idea of building a house according to their personal project, satisfying all wishes: from the view from the window to the quality of building materials and landscape of the surrounding area. Others are trying to save money against the background of rapidly rising prices of ready-made accommodation, especially in the category of houses. According to experts, it is quite possible to save up to 30% of the cost of future housing, if you build yourself. But here it is important to understand the process.
Large selection of land plots in Cyprus
Number of land transactions in 2022
A total of 2175 house sales transactions, 5568 apartment transactions, 4297 land transactions and 6558 agricultural land transactions were completed in Cyprus last year.
At the same time, most residential plots were sold in coastal Limassol (1,343). In second place is the capital Nicosia - with 1237 transactions. In third place is the rapidly developing city of Larnaca - with 1195 transactions. Then follows another neighbor of Limassol - Paphos - 451 transactions. Free territories of Famagusta (Paralimni, Ayia Napa and Protaras) - 71 transactions. At the same time, the total volume of sale and purchase transactions of real estate of different categories in 2022 amounted to 22129.
Real estate market experts attribute the growth of interest in land to several reasons: the increase in mortgage rates (the average loan interest rose from 1.8% to 5%), the rise in the price of building materials, and rapid inflation, which reached 8% by the end of last year.
What to look out for when buying land in Cyprus
Designation of a plot of land
The term "plot of land" in Cyprus means an area ready for use (plot), which has a Title Deed - a legal document that certifies and secures the ownership of real estate. If you just buy land, you will have to wait for the exact plan of amenity communications and green areas before building your house. Unlimited time! It would be inadvisable to start anything without this paper. Accordingly, the price for different types of land differs not only due to the prestige of the area but also to the degree of readiness of documentation and amenity communications.
In order not to miscalculate with a plot for a residential house, it is worthwhile to be cautious about the variants of land intended for agriculture. It is not very suitable for us for several reasons. Here it will most likely be impossible to build a housing unit of the desired format, and neighbors can literally be sheep, piglets, and other cute animals. Even if you are seriously thinking about organizing your farm, you need to understand exactly what is allowed to build on this plot.
Cypriot land is covered by various government plans and their details can be found on the website of the Land Registry Department. In order to check the plot yourself, you need to know its registration number, plan number, and name.
For example, plot number 87 with registration number 3456, is part of the Τ4 zoning plan. With this data, you can find out what is allowed to be built, the percentage of density, the percentage of coverage, the allowable story, and height. Thus, the investment may not be worthwhile if the dream house project does not match in height or other characteristics.
"Percent coverage" and "percent building density" refer to the way land is used on the plot. They are both expressed as percentages and indicate how much of the land area is covered by structures. For example, if a 1000 m2 plot of land has a 200 m2 building on it, the percentage of coverage is 20%.
Building density percentage refers to how many buildings are on a plot of land. For example, if a 1000 m2 plot of land has two buildings, each with an area of 150 m2, the percentage of building density is 30%.
It is important to note that the percentage of coverage and the percentage of building density may have different values if there is more than one building on the plot of land or if the buildings are located in different zones.
For example, a plot of land in the area of Pissouri, located between Limassol and Paphos belongs to two building zones: residential H6 (building density 49%, coverage 20%, building height 8,3 m, 2 floors) and agricultural G3 (building density 51%, coverage 10%, building height 8,3 m, 2 floors). For the construction of a residential building, a residential zone (plot of land) must be chosen. The residential area has a well-thought-out infrastructure with parks, schools, and stores.
Proximity to water
The presence of any bodies of water near the site affects its characteristics and construction techniques can vary considerably. Moreover, dams, streams, watercourses, and our favorite sea may eventually restrict construction due to local environmental regulations.
A house on a mountain with a magnificent view
Constructing a building on steep slopes and hills sometimes requires special efforts. The shape of the house, the cost of materials and construction work may differ from standard market prices.
But many of us are so drawn to the mountain scenery. And for good reason. Here you will definitely always feel at the top of your game.
Availability of amenities
Above we have already mentioned the topic of amenity communications on land plots. But it is still worthwhile to bring out such an important point in a separate entry. If these amenities are not available, it is important to clarify whether they can be carried out. Otherwise, investments may not be so profitable. The difference in the price of two plots can be quite high, and sometimes almost imperceptible. For each offer a different buyer. And yet, fully ready for life and construction plots with communications are of great interest to buyers, they are easier to sell if necessary.
Remoteness from public roads
There is no access without a road. If there is no possibility of access to the site, construction is simply impossible. Even if we are talking about a small summer cottage, it is necessary to somehow deliver construction materials on special equipment. And the road will be very useful for the future residents themselves.
The value of a residential plot in Cyprus
The value of Cypriot land varies depending on the prestige of the area and the city. Limassol and its neighboring towns of Paphos and Larnaca are in high demand among tourists.
Buying land in Cyprus can also be done with a mortgage loan if the buyer works in Cyprus. The average rate is 5%. At the same time, land plots are usually not subject to VAT. According to an expert of the agency DOM, if the owner sold some property in the last 10 years, VAT will be 19%.
For example, a plot overlooking the sea area of 7980 m2 in the area of Amathunda in Limassol for the construction of a large project is currently worth 12.5 million euros. A small plot of 593 m2 in the suburb of Limassol, such as Trimiklini overlooking the mountains is a costs of 60 thousand euros. In the suburb of Larnaca in the village of Kiti, a large plot of 6522 m2 for residential development costs 92 thousand euros. A plot of 710 m2 with panoramic sea views in the area of Pegeia in Paphos costs 129 thousand euros. And for 400 thousand euros in the Episkopi area of Paphos you can buy a plot of 6616 m2 with panoramic sea views.
Today there is still a restriction for foreigners who want to buy a plot of land on the island of Aphrodite. The total area of the plot of land can not be higher than 4000 m2 per buyer. In this case, you can register the land in the name of a family member or make a purchase from a legal entity.
When buying a plot of land it is necessary to make sure that you have a complete set of documents. The Title will have all the most important information about the land, its past owners and the authority that issued the document. Attached to it is a cadastral plan, which shows the exact location of the plot, as well as a document defining the purpose and status of the plot.
Interested in housing on the island? Check out DOM, the #1 real estate agency in Cyprus! The agency's website has the largest real estate database in the country - more than 30 thousand residential and commercial properties all over the island. Select and contact professional brokers who will help you make the right choice!
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