Real estate experts have conducted a new study. Based on the study, Larnaca has been recognized as the most promising place to invest in housing.
This is an excellent choice for those who are in search of profitable options for buying real estate in Cyprus.
Experts noted that currently the real estate sector of the island state recorded a significant influx of both institutional and retail investors. All of them seek to maximize returns on investments in Cypriot housing against the background of low-interest rates on deposits. Analysis of the data revealed a marked contrast in the prices of new and secondary real estate in Larnaca. Thus, the average price for 1 m2 in a new building in the coastal city is now 3 619 euros, and the cost of secondary real estate - 2 289 euros per 1 m2. These figures include VAT of 19% for new assets and a transfer of title fee (TTF) of 4% for second-hand properties.
This significant difference of 36% not only makes Larnaca an attractive investment destination, but also an ideal place for those in search of a permanent residence," said the experts.
A similar situation is observed in other cities on the island. So the difference in the cost of 1 m2 of housing in new buildings and used real estate in Limassol is 25%, in Nicosia - 27%, in Paphos - 27%, and in Free Areas of Famagusta - 21%.
The findings, according to the report, are based on an analysis of 24,773 new properties and 4,539 used properties, providing a robust sample size for a comprehensive description of the current market landscape.
An increasing number of investors are starting to invest in secondary market homes that are renovated and then resold for a profit," the experts noted.
Finally, it also highlights that "as Cyprus' real estate market continues to grow strongly, driven by both global trends and local dynamics, Larnaca stands out as a new location for real estate activity."