The overestimated cost of apartments in new buildings, a limited choice of housing in the central regions, VAT, and the lack of documents confirming ownership have led to a significant increase in the demand for secondary housing to renovate in Cyprus.
Properties in Cyprus, which have not previously attracted much interest from buyers, are increasingly popular as are more easily to be repaired.
Investors are attracted by the good prices for such housing, as well as the absence of a mandatory VAT of 5% or 19%. For example, if an apartment in the secondary market in Cyprus can be purchased on average at a price of ± €1 thousand euros per m2, then a new building requires ± €2.1-2.3 thousand per m2 (+ VAT). The resulting difference in value is very significant and significantly exceeds the cost of modernization, in the case of buying a resale property in Cyprus.
In addition, most often the resale in Cyprus already has a title deed. The footage of housing also plays an important role. Apartments in older buildings are often more spacious. Thus, the purchase of housing objects from the old stock in comparison with the new one in some cases provides more economic benefits.
It is noteworthy that the demand for secondary real estate which can be renovated has created a need for small construction contractors who are engaged in apartment renovation, providing a full range of services: from finishing to electromechanical works.
Taking into account the lack of such organizations in Cyprus, companies from Greece began to arrive on the island, which gladly take care of the repair of secondary real estate.
In addition, there is now an obvious increase in demand for older apartments in the central area as rental housing here is popular among students and young families. In other words, this is a great investment option.
For example, you can easily earn €740 from renting an apartment with two bedrooms in Nicosia. And in Limassol, the cost of such housing will be much higher. Do not forget that secondary housing is also much cheaper to maintain than a new building, in which you usually have to overpay for various additional services.
Are you looking for accommodation in Cyprus? Take a look at the DOM Real Estate. The website has over 20,000 properties in Limassol, Larnaca and Paphos, both residential and commercial. Choose and contact professionals who will help you make the right choice!