According to statistics, residential real estate in Cyprus can bring 5-8% of the value of the property per year. In addition, the apartment or house itself will gradually increase in value. So, buying and then renting out will definitely be a profitable investment.
What is better - apartments or a private house - read in our article.
Difference between Nicosia and other cities of Cyprus
Nicosia is quite different from Limassol, Paphos or Larnaca. And there are three big and serious reasons for this.
Remoteness from the sea
The geographical location of the capital city makes it very different from the seaside cities. In fact, Nicosia is located on a plain, to the nearest beach or mountains - about 30-40 km, and this is at best. Therefore, for tourists, the capital is often not a priority or long-term place to visit. They come here "at the same time": to look at the authentic divided city, the ancient Venetian walls and walk along Ledra Street.
The lack of a seasonal influx of tourists puts an imprint on the whole rhythm of life in Nicosia. It lives at the same pace all year round, and its permanent population is the people who live and work here. Hence the first direction concerning the topic of this article: you should pay attention, first of all, to long-term rentals.
Nicosia is a unique phenomenon for the whole world. It is simultaneously the capital of two states: the Republic of Cyprus and the unrecognized TRNC. Cypriots live in both parts, but foreigners are legally available only in the southern part of the city. Accordingly, they can buy real estate only in the "open" part of Nicosia.
Despite the fact that Limassol is a multinational city with great opportunities for business and remote work, Nicosia is still ahead of it in this regard. The capital is the capital. Here and connections, and the necessary organizations, offices, representative offices and much, much more.
Nicosia also has the most educational institutions: kindergartens and schools (private and public, with education in Greek, English and even Russian languages, with local and foreign programs), 4 major universities: University of Cyprus, Frederick University, Global Business University-Europe, University of Nicosia. Besides them, there are also so-called "colleges", which also provide higher education.
The main points to pay attention to
From all of the above, you can draw some conclusions about what real estate and where it is better to buy for rent.
As for housing, short-term rentals are in demand closer to the historic center of the city. It is there for a few days settled visitors to see the old buildings and feel the spirit of Nicosia, walk and eat delicious food. Also renting accommodation for not too long is in demand in the developed central areas: people who visited the capital of Cyprus on business stay there.
Otherwise, the demand is more focused on long-term rentals among different segments of the population: students and teachers, working people, families with and without children, foreigners who have come to Cyprus for a long time (relocation for work, volunteering, exchange of experience).
It is also worth paying attention to renting commercial real estate. Nicosia is a developed city with a good business infrastructure. Here you can buy an office or commercial premises for a reasonable amount, and then profitably rent them out and receive a stable passive income.
What and where to buy in Nicosia for short-term rentals
If you intend to rent out real estate for short-term rent, it is worthwhile to familiarize yourself in advance with what objects are most in demand. In the central parts of the city it is better to buy small apartments with one bedroom or studio apartments. For those who settle down for a short time, a large space is not so important, so 2-3-bedroom apartments are not in great demand in this segment.
The advantage will be a beautiful view, panoramic windows and landscaped terrace for recreation. If the residential complex has its own infrastructure (gym, garden on the first floor or on the roof, swimming pool, stores and cafes, SPA) it will increase the attractiveness of apartments and raise their price tag. Therefore, it makes sense to invest not in the area of housing, but in its convenient location, view and additional amenities.
It is worth noting that due all the developments in these areas - finding a private house here is simply unrealistic. Those who are accustomed to a luxurious life in privacy, in this case, penthouses in new skyscrapers will be suitable.
Separately it is worth talking about boutique hotels and their demand. Indeed, in the tourist part of the city boutique hotel can become a source of solid income. You can buy an existing hotel or invest in an property under construction. There is also a more complicated, but more interesting option: buy a property to be reconstructed to turn it into a functioning and thriving hotel.
What and where to buy in Nicosia for long term rentals
Demand for long-term rentals in Nicosia is active in literally all districts - regardless of their distance from the center. The leaders are still apartments rather than private houses. If only because there are a lot more of them. For example, in Dasoupolis, Aglantzia and Strovolos there are not so many cottages. Families prefer to settle in spacious apartments with 2-4 bedrooms and close to important infrastructure.
If you want to rent an apartment in these areas at an attractive price, while buying pay attention to the following points:
- In the center it is advantageous to buy a small studio or one-bedroom apartment close to one of the universities. So your potential target market will expand to students and professors.
- For those who come for work, small apartments with amenities and close to transportation are interesting. 1-bedroom apartments near bus stops, transport interchanges, and business centers will be attractive.
- For families it is important, first of all, the infrastructure for children's life activity. In this sense, the most important advantage will be the convenience of the apartment location: that there were parks for walks with playgrounds, children's development centers, kindergartens and schools, sports areas and sections nearby.
Private houses are most in demand in the elite neighborhoods of Nicosia: Engomi and the adjacent Macedonitissa, Archangelos and Agios Dometios. Here, quietness and privacy are valued with comparative proximity to the center, although apartments are also a good option.
Buying a private house can also be considered in Platy, near Athalassa Park. A cottage in this location will be gladly rented by large families with children or those who like silence, privacy and proximity to nature.
Private houses in Nicosia suburbs
The suburbs of Nicosia, far from the center, are full of different types of real estate: from modest studios to luxury villas. There is plenty to choose from for both buyers and renters. In the sector of elite real estate can find decent options with excellent returns, but economy and comfort classes will bring less than 3-bedroom apartments in the center of Nicosia (but you can buy them at a lower price).
It is recommended to pay attention to the following areas, where you can rent both apartments and houses: Lakatamia, Geri, Latsia, Tseri, Kokkinotrimithia. From here there are good roads to the capital, and even working people will be convenient to get to work in the center.
It should be understood that in all cases it will be a long-term lease. Very few people are willing to rent housing far from the center for just a few days.
To summarize
So, Nicosia itself in the center is built up with apartment buildings. Therefore, it is logical to say that it is more profitable to buy apartments - there is always a great demand for them, and such a decision will be a win-win option.
A private house is profitable to buy in two cases: if it is located in one of the top areas (Engomi and its locations, Platy in Aglantzia) or in a village near the capital, with a convenient and quick exit to the highway.
Detailed information about all projects in Nicosia can be obtained from the specialists of DOM, the #1 real estate agency in Cyprus, by phone +357 22 030670, or in person at the address: Archiepiskopou Makariou III 1, Lakatamia 2324, Nicosia, Cyprus.
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