It is impossible to unconditionally name the most profitable city of Cyprus for investing in real estate. All localities have advantages and disadvantages. Nevertheless Cyprus property market experts have long believed that Limassol and Paphos are in the first places.
The cities of Cyprus can be easily located along the “ladder” of demand. It turns out that the most demanded housing and commercial real estate is in Limassol.
1st place: Limassol
Limassol has many names: "the second capital of Cyprus", "the seaside capital of Cyprus", "the main port of Cyprus". All this allows us to conclude that Limassol is an active, developing and large city with a well-functioning infrastructure.
The main feature of Lemesos (the name of the city in Greek) is its multinationality. A lot of people from all over the world live here. Excluding thousands of tourists!
Even in winter, in the off-season in Cyprus, the city remains lively and active, and investors who have invested in Limassol real estate make profits all year round. There is no such thing anywhere else in Cyprus as seasonality is felt everywhere, even in the "non-marine" Nicosia.
What else is attractive in the city in terms of real estate investment in Limassol:
- Housing prices in Limassol are the highest, but the demand for houses and apartments is great. Thus the purchase pays off anyway
- The city is big, which means there is room for choice. There are apartments in seafront skyscrapers, villas by the sea, quiet houses in Cyprus suburbs and apartments in convenient neighborhoods, away from the tourist bustle. Real estate in Limassol is for any lifestyle!
- If there is a plan to rent out housing, income is guaranteed as there is demand in any season
- Limassol is a huge international business platform with great opportunities. It's easy enough to find your niche despite the huge competition. Whoever does not become a competitor does become a partner
- Business in Limassol is not a problem to the happy life of the whole family. The city is ideal for living with children, adult relatives and elderly parents. Kindergartens, parks, playgrounds, schools, gyms, hospitals and private clinics are all within easy reach. Moreover, many of them have native English-speaking staff!
- Limassol is full of entertainment. This does not apply directly to business, but it does matter if an entrepreneur with their family resides in Cyprus permanently. Cultural, sports, club life in Limassol is not a myth, but a reality, unlike other cities on the island
- Commercial real estate in Limassol is in the same demand as residential. Investments here pays off quickly
- All the necessary state (for example, tax) and private offices (notaries, lawyers) are in Limassol. You don't need to travel far. Paperwork and transactions are completed quickly and without unnecessary time spending
Investing in real estate in Limassol does not necessarily mean buying a home with its subsequent renting out or resale. Someone buys housing to do business in Cyprus, someone just wants to come to the island regularly as a tourist.
These are different options, but they all work in Limassol.
2nd place: Paphos
Paphos is a very special city in Cyprus. It's all about its "distance" from all other large cities, including the capital. Of course, this is a bit of a ridiculous "distance", but it is quite a decent distance in small Cyprus.
The western city of Paphos even has a slightly different climate as the sea is always slightly colder here, there are often strong sea winds. And next to it is the Akamas Nature Reserve, an island of luxurious greenery right on the coast.
The third characteristic of Paphos is its “ethnic composition”. The city can be considered the center of British people who love to relax or even live here.
Why the city is interesting for those who want to invest in Paphos real estate and receive passive income:
- The city's infrastructure is oriented towards tourism. Therefore, the most profitable business that one related to the leisure and entertainment sector.
- There is an airport.
- Paphos real estate is slightly inferior to Limassol in terms of prices. At the same time, the demand here is moderate, which means that the most profitable is not resale, but rent out
- Business in Paphos is not in its infancy, but also not at a developed level. This means that there is minimal or no competition in certain areas.
- Paphos is an ancient city with a long history. The culture is well developed here. Therefore, locals don't have intellectual hunger. This is important for those who want to live here permanently
- It is comfortable to live in Paphos with family and children: the city is equipped with everything you need, from kindergartens and schools to medical institutions. By the way: in Paphos, you can send your child to a British school with a British curriculum
- Paphos is a sports city and many athletes live and train in it. Еhe climate allows to do sport all year round. It also opens up opportunities for investments in sports, events and centers.
- Paphos has always been and remains a favorite destination for foreign investors. The owner of a Paphos business is left behind and able to make useful and profitable connections.
An easier option is to rent out housing by the sea. Paphos is in demand among tourists from March to November, and now the local authorities are doing everything to keep the city interesting in the off-season. So investing in Paphos real estate is profitable in any case.
3rd place: Nicosia
Cyprus is surprising in that its capital of Nicosia has not been a leader in real estate sales for many years. The reason is that the city is far from the sea, which means that tourism here is purely cultural.
The locals are interested in buying real estate in Nicosia as they like to live in the administrative center of their small republic. It is the local residents who purchase housing in the capital, rent it out on a long-term lease, or do business here.
For foreign investors, Nicosia is interesting for commercial real estate as this is the niche that brings excellent profits and is in high demand. This also includes land plots, since land in and around the capital is highly valued.
Here are a few more industries in which Nicosia can satisfy investors:
- Restaurant or hotel business
- Document flow (all migration requests are processed in the capital, therefore, employees who speak foreign languages are required)
- Entertainment business (oddly enough, the entertainment sector, including for children, is not very developed in the capital).
When making real estate transactions in Nicosia, it must be borne in mind that the main language of communication is Greek.
4th place: Larnaca
Larnaca is a large city in Cyprus, which for some reason is still not interesting to foreigners. And if tourists from abroad come with pleasure to relax here for a week or two, then only a few want to relocate to Larnaca.
There is no active construction here, so the real estate in Larnaca is mostly secondary. Local residents are interested in it, and foreign investors see no benefit in local housing.
But some visitors still choose Larnaca as a place to live, and here's why:
- Developed infrastructure of a big city
- There is a large airport and seaport
- Peace and quiet
- Warm and clean sea nearby.
Buying real estate in Larnaca is beneficial to those who are going to permanently reside in the city. An apartment in Larnaca costs significantly less than an apartment of the same size and location in Limassol, Paphos and even Nicosia.
Also, some analysts suggest that Larnaca may become the "new Limassol": foreign investors will come here, and skyscrapers with luxury apartments will appear on the embankment. True, no one says when this will happen: in several years or several decades.
The conclusion is simple: Larnaca is a good place to stay. At the same time the city is not yet very developed as an investment center, although some companies have already found their niche here.
5th place: Ayia Napa (Famagusta district)
Almost all business in Napa is seasonal. While tourists flood the town, shopkeepers' profits flow like a river. At the end of November, Ayia Napa turns into a state of suspended animation until the end of March, until the new tourist season begins. And there is no money at all at this time.
Nobody makes serious investments here. The only option is to buy real estate for winter living. For example the owners spend the quiet time of the year in their own housing in Ayia Napa, and in the summer it is rented out at very favorable prices.
Limassol and Paphos obviously are the winners for investing in Cyprus property. There are enough housing options for prices, location, primary-secondary and other criteria, much more than in the rest of Cyprus. However, some investors don't mind buying real estate in Nicosia, Larnaca and even Ayia Napa.
Looking for accommodation in Paphos or Limassol: apartments, houses, villas for rent or to buy? Contact the DOM real estate Cyprus. The company's specialists will help you find the perfect home for free. Follow the link.
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