5 reasons to hurry up to invest in property in Cyprus

At the moment, the real estate market in Cyprus is very active, with a good response from buyers: houses and apartments with an optimal price-quality ratio diverge quite quickly. Timely investment in Cyprus real estate opens up the possibility of business diversification and guarantees a stable income. Taking into account the time factor, popular wisdom can be interpreted as follows: do not postpone the purchase of an object until tomorrow if the conditions allow it to be done today.

Residential Properties
The increase in the cost of Cypriot apartments for 2022, in some cases, reached 15-20%. Restrained forecasts of realtors promise a slowdown in price growth, but the demand for this type of real estate remains high. The increase in lending rates has reduced the interest of the inhabitants of Cyprus in new homes, while the percentage of foreigners has exceeded the 50 mark and is steadily moving upwards. Most buyers from European countries are in the Scandinavian region, Great Britain and Germany, which can confidently be called the most developed countries of the Old World. Such investors have high purchasing power and, in the process of turning to the Cypriot real estate market, are able to make it bullish.

Investors from third countries, in addition to real estate, are attracted by the possibility of obtaining Cypriot permanent residence. A significant percentage of this category of buyers are Russian citizens who, in the context of the application of international sanctions policy, seek to obtain the official status of one of the EU countries. Cyprus provides this opportunity through the acquisition of new residential or commercial real estate worth from 300 thousand euros + VAT. Apartments in the price range of 300-500 thousand, located in Limassol and Larnaca, are in high demand, so those who wish to purchase them should hurry up. Every month, housing from this segment is located farther and farther from the coast of the azure sea.

The discovery of last season, in terms of the growth in the sale of residential real estate by 22%, was the picturesque Paphos. The local market is mainly represented by a large number of villas and apartments in low-rise complexes. According to the expert opinion, the region offers the best quality of life on the island and is an ideal place for those who move to Cyprus in search of a more relaxed pace of life. Properties located in Paphos are in high demand among tenants, especially during the high sea season. Local objects are most often chosen by residents of northern Europe and, first of all, the former Cypriot metropolis – Great Britain. Over time, the British diaspora of Paphos multiplies, and with it the prices of real estate offered by developers.

Investments in the residential sector of Cyprus are among the most profitable in Europe. At the moment, the market is favorable for investors who expect to sell the apartment in the future at a higher price or use it to receive passive rental income. The rate of return of real estate in Cyprus reaches 7% per annum, which exceeds that of Mediterranean competitors such as Greece, Italy and France. The tourist season on the island is the longest in the region, which is also an undeniable bonus for the landlord. The maximum interest for such intended use are apartments and villas located near the coast or business districts of seaside cities and Nicosia.

Tourist and office real estate
Tourism remains the most important sector of the economy of the Republic of Cyprus. Investing in a built hotel property or a project with a plot of land for further development is a promising and logical investment of capital. The Cypriot market offers a wide range of tourism industry objects: private villas, apart-hotels, hotels and resorts with well-equipped infrastructure. At the end of the pandemic, the flow of tourists to the island is constantly growing, so the profitability of the business is sustainable and can reach 5-7% per annum. However, the growth factor in the cost of coastal land and building materials may adversely affect the investor’s balance sheet.

The relocation of about a thousand companies to the island completely reshaped the business real estate market. On the one hand, the annual growth of rental prices for some locations has reached 100%, on the other hand, offices in cities on the coast have become in short supply. By purchasing premises of this class, especially in the business capital of Cyprus – Limassol, the investor is guaranteed to receive a stable rental income, mainly from companies that have moved from abroad. In parallel with the classical lease, leasing of office premises is actively developing in Cyprus, in which the tenant confirms his firm intention to buy the premises from the owner. Replenishment of the ranks of specialists from high-tech sectors encourages entrepreneurs to organize co-working spaces and other platforms for creativity and professional activities.

The construction of new residential complexes and the renovation of urban areas fuels entrepreneurial interest in investing in retail outlets and areas for the beauty industry. At the same time, their owners have several options for doing business: rent out the premises, open their own store or salon, join an international consumer network.
In cities that receive the maximum number of foreigners, this direction seems to be the most promising. In their home countries, residents, and especially residents of big cities, are used to shopping and visiting stylists without leaving the agglomeration or their area. At the moment, the largest shopping centers in Cyprus are located in Nicosia, which means that the conditions of Limassol, Paphos and Larnaca make it possible to successfully develop the retail and beauty industry sector.

Our company is ready to share its practical experience with you! We will be happy to help you find the most liquid property in South Cyprus for investment – our contacts!