Buying property in Cyprus in 2024 is one of the best ways to invest capital.
If certain conditions are met, the investor is entitled to official status in the EU country, with all the benefits that entails. In addition, the return on property in Cyprus is one of the highest in Europe. For objective reasons, Cyprus remains attractive and promising for investors, so it is not without reason that investments in property are considered rational and safe. This blog presents the advantages of each region of Cyprus and the general situation in the property market.
Property Market Overview
The following processes are currently taking place in the Cyprus property market. Buyer activity, accompanied by steady demand. A high level of sales, in the first half of this year, demonstrated Nicosia, which is landlocked. The price of certain categories of building materials is gradually decreasing. It is well known that their prices have a direct impact on the cost of construction.
The number of building permits issued in Cyprus has increased. If in the spring of 2023 their number was close to 1,900, this year the parameter exceeded 2,500 units. Summing up the last two arguments, it should be noted that by the beginning of this summer, property prices in Cyprus have slowed down their growth and for some categories of properties have stabilised.
According to the Land Registry, sales in the island's regions are as follows: Limassol - about 30%, Larnaca - 21%, Paphos - 21%, Nicosia - 23%, free areas of Famagusta - 4%. According to the Central Bank of Cyprus, the annual price increase (2023-2022) by city will be Limassol - 10%, Larnaca - 11%, Paphos - 8%, Nicosia - 4% and free areas of Famagusta - 6%.
In absolute terms, in July 2024, the median price (median is the price from the middle of the price range of identical goods) of a residential apartment in Cyprus will be 550 thousand euros, and the cost per square metre will be around 4.2 thousand euros. At the same time, the median price of a private house (villa) is 690 thousand euros, and the cost per square metre is 3.3 thousand euros.
Before investing in real estate, the investor must answer the following questions
- Does he intend to live permanently in Cyprus?
- Does he intend to use the property as a holiday home?
- Do they intend to rent out the property?
In order for an investment in houses and flats to be considered a successful investment, an adequate amount of money should be invested in them, taking into account the return. It is influenced by:
- The location, age and condition of the property
- The level of infrastructure development in the neighbourhood;
- The quality of the residential complex and the services it provides;
- the presence of tourists and holidaymakers (a classic example is a coronavirus pandemic).
Of course, when investing in property, the most important factors are the financial capabilities of the investor and the purpose of the purchased property. The RICS property index shows that in the first half of 2024 in Cyprus on the level of sales are leading apartments, and their index of return is the highest - about 5.5%. For private villas and cottages this figure is 3% and for commercial properties it is almost 6%. The figures vary according to the characteristics of the properties. In seaside towns, the most profitable option is considered to be the purchase of properties within walking distance of the sea, preferably away from the traditional mass tourism routes. Such properties, at least, will not lose value over time and will be in stable demand. Initially they are more expensive than others, but when it comes to renting or selling, the advantages are clear.
Luxury villas and cottages are particularly popular with wealthy investors for permanent residences, seasonal holidays or rentals.
The most sought after types of commercial property in a city setting include business centres and office space. First and foremost is business in Limassol.
This is because the city has developed a community of highly paid workers who have an increased demand for services: stylish and comfortable restaurants and shops, sports centres and medical facilities. Shopping facilities offer good prospects. Tourist properties (hotels and hostels) are also liquid and profitable, given the role of tourism in the life of the island.
It is impossible not to mention Cyprus' land resources, the value of which will only increase over time. Such acquisitions are first and foremost long-term investments. On the one hand, land is of interest to property developers, and on the other, to those who wish to engage in agriculture in the country. In the case of apartments, the average yield is up to 7% in Limassol, 5% in Nicosia and just over 4% in Larnaca and Paphos.
Each city in Cyprus is good in its own way, as will be discussed below.
Limassol
Limassol is the commercial capital and the most expensive city in Cyprus. The cost per square metre of residential property from developers in the centre ranges from 4.5 to 5.5 thousand euros. It is an important international business and tourist centre with its own seaport. Limassol has a large concentration of schools and offices, providing a choice of qualified employees. There are many restaurants, shops and leisure facilities for adults and children. A wide range of cultural and entertainment activities are available to the public. There is a high demand for luxury properties, especially near the coast. Limassol is ideal for investors looking for guaranteed capital growth and rental income.
Currently for sale is a new penthouse in the quiet area of Mouttagiaka. Living area: 116 m2 Total area: 237 m2. The apartment has 3 bedrooms and 3 bathrooms, energy efficiency class A, mountain views, distance to the sea - 1,500 metres. Facilities: swimming pool, gym, lift, children's playground, storage room, parking. The building has been constructed with top quality materials and is fully finished, with quick and easy access to the beach and town infrastructure.
Price: 1 141 600 Euros + VAT
Nicosia
Nicosia is the administrative, political and financial centre of Cyprus. The country's largest city, located in the central part of the island, is the most southeastern capital of any EU country. The cost per square metre of housing in the centre from developers ranges from 2.5 thousand to 3 thousand euros. The catalysts for buying property in Nicosia are work, education or the so-called 'capital city syndrome', where Cypriots and foreigners want to live in the country's capital.
There is a good choice of schools and universities, and the most popular property in the capital is among the local population. Nicosia is the best place to rent out property for passive income. The vibrant commercial property market includes office and retail space, including for medical purposes. It is common practice for Cypriot government agencies to rent offices from private companies for their own use. The capital has a well-developed infrastructure, and leading foreign companies, particularly in the banking and auditing sectors, are opening offices and representative offices in the region. A number of municipal programmes are underway to renovate dilapidated areas of the city.
A five-bedroom apartment is currently available for sale in a new five-storey complex in the capital's Dasoupolis district. Total area: 258 m², energy efficiency class: A. Private roof terraces provide additional living space. Each apartment faces three sides, allowing for unobstructed light, ventilation and views.
Price: 900,000 euros
Larnaca
According to experts, Larnaca is one of the most promising and affordable investment destinations. Despite being home to the country's main international airport and seaport, the city is gradually shedding its image as a transit point. In Larnaca, new residential and commercial developments are underway and the city's infrastructure is developing.
The cost per square metre of housing from developers in the centre ranges from 3,000 to 4,000 euros. Compared to the seaside resorts of Limassol and Paphos, property and living costs are lower. The city is well connected to the rest of the world by road and rail, making it easy to travel to other Cypriot cities. As a result, Larnaca has an intensive flow of tourists, developed trade. The most profitable places for investment are in the centre, near the sea and around the airport.
Today, a three bedroom, three bathroom apartment is available for sale in the New Marina area of Larnaca. Living area: 95 m2 Total area: 145 m2, distance to the sea - 950 metres, energy efficiency class A. The property is scheduled for completion in 2026. The apartment has a smart home system and photovoltaic panels for common areas. Car charging is possible. Schools, kindergarten, shops, supermarket and restaurants are close by. The sea is within walking distance.
Price: 375 thousand euros + VAT
Paphos
Located in the western part of the island, Paphos is the cultural capital of Cyprus. The city combines comfortable Mediterranean resorts with a wealth of historical and cultural monuments. As such, the region attracts millions of tourists throughout the calendar year. The cost per square metre of apartments from developers in the centre ranges from 3.5 thousand euros to 4.5 thousand euros.
Despite its popularity with investors and rising property prices, the cost of living here is lower than in Limassol. Thanks to the presence of the airport, the region's communication with the outside world is quite convenient. In Paphos and its environs, villas and luxury apartments are in high demand, in addition to affordable housing. The construction of a new port is about to begin, which will provide an additional boost to the development, tourism and service industries. Paphos is ideal for investors looking for guaranteed dividends through property investment.
At the moment in Paphos (Kato Paphos) in a modern eight-storey residential complex, available apartments include 1-3 bedrooms, with total area of objects from 50 m2 to 161 m2, energy efficiency class: A. Distance to the sea - 500m, within walking distance of a supermarket, public transport stop, promenade. Completion date: 2025. The apartments will have panoramic windows.
Price: from 365 000 euros to 1 583 000 euros.
Free areas of Famagusta
Located in the eastern part of Cyprus, this region is renowned for its beaches, which meet the highest environmental and safety standards. There are clear, azure waters and many entertainment venues where life goes on even at night. The cost per square metre of residential property in the centre of Ayia Napa ranges from 2.4 to 3 thousand euros.
Recently, the investment attractiveness of the east coast of Cyprus has been enhanced by the construction of the first marina in this part of the island. Famagusta is ideal for those wishing to invest in out of town property, including tourist and rental accommodation. Private villas, including those in the premium segment, are also popular with investors.
Currently for sale are apartments in a modern gated community with 2 bedrooms and 2 bathrooms. The living area is 78 m2 and the total area is 159 m2. The apartment has sea view, distance to the beach - 400 m, energy efficiency class: At the disposal of the residents: swimming pool, air conditioning, storage room, parking, gym and playground. Completion date: August 2025. The apartments will have Italian kitchens and wardrobes, terrace area - 9 m2.
Price: 290 thousand euros + VAT
Cyprus offers investors a wide range of property options. Depending on the objectives, preferences and budgets invested in residential and commercial projects, future owners have the opportunity to choose the best property for themselves. The favourable economic situation on the sunny island makes it possible to develop local square metres without fear.
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