Is Buying Property in Cyprus a Good Investment?

If you started looking at purchasing an overseas property this is a question you might find yourself asking and is a valid and important question, which has a lot to do with your finances and economic status. It is very easy to just jump into risky decisions such as buying a property hoping it can yield financial profit without really finding out or knowing the pros and cons that come with it.

Itis also important to know that a lot of properties in the northen part of occupied part of Cyprus that are for sale are at very high risk for buyers due to ownership of the property and the right to sell these debated properties remains controversial. There are several locations considered to be wonderful choices to own property in Cyprus such as:

PROPERTY IN LIMASSOL

Buying and owning a property in Limassol, Cyprus is an ideal place for active families. Limassol as a metropolitan city has a large list of international schools to choose from. Limassol also has everything to lead a comfortable and delightful life with the presence of a lot of restaurants, bars, shops, and so many recreational venues to pick from. The newly built Limassol Marina offers a nice combination of shopping, eating and relaxing at the same place. Rentals in Limassol are in high demand, due to low inventory, making it an excellent investment for people who are looking for rental yield.s

PROPERTY IN PAPHOS

If you consider yourself to be a lover of the beach and a slower tempo of life, all the countryside and exploring historic places then buying a real estate in Paphos, Cyprus is the best way to go. Paphos has its own International Airport which makes it ideal for people who are travelling frequently with easy access to Limassol. Hence some people working in Limassol live in Paphos in order to save on rent, since prices in Paphos are more affortable than in Limassol.  The majority of properties sold here are freehold detached villas with swimming pools and apartment/flats with communal swimming pools, offering a more a more laid-back environment compared to rest of Cyprus.

PROPERTY IN NICOSIA

Real estate in Nicosia is excellent for buyers who are in search of letting the property out due to its reliable demand originating from the domestic market. A lot of workers in Nicosia are said to be Cypriots given that it is the capital city so it is a very good investment to create a long-term rental opportunity here. Nicosia is known to be located inland and has no access to the sea directly, so it wouldn’t be a great choice to buy property in Nicosia for a holiday home or short-letting opportunity.  

PROPERTY IN LARNACA

Larnaca is located near the Larnaca airport, right by the sea and the property prices are usually at an affordable rate compared to that of Limassol. It offers easy access to Nicosia and good beaches to enjoy.

PROPERTY TYPES TO CHOOSE

There are a whole lot of properties in Cyprus to choose from. You can either decide to buy a holiday home for you to occupy occasionally, purchase a property you can rent out long-term or you can also decide to buy a residential home for permanent living.

RESIDENTIAL HOMES (DETACHED VILLAS, APARTMENTS, TOWNHOUSES)

There are so many options you can choose from. From detached villas with beautiful views and private swimming pools to apartments in peaceful villages, houses in the urban region that are modern in nature, and bungalows in the middle of city centers. It is possible for you to buy or purchase a resale property and renovate it to your specific desire or taste or you can also purchase a modern home..

HOLIDAY HOMES

Many people find it appealing to own a holiday home that can use occasionally and at the same time generate some income by letting it out while not using it. It is quite easy to get a property for holiday purposes since there are a lot of options from apartments with communal swimming pool and detached villas with private swimming pool. Getting or acquiring a holiday a villa by the coastline or a house with a pool as a holiday home is a fantastic idea.  Holiday rentals is a solid recommendation you can invest in once the adequate funds are available. You can benefit from capital proliferation in a rising property market.

HOTEL PROPERTIES

Although not feasible for the average people, there is quite an interest about purchasing hotels in Cyprus, since there are a lot of sea front hotels on a very realistic prices. Investing in properties such as hotels is considered a great investment property to be obtained or purchased in Cyprus. It is efficient on so many financial levels and if handled properly, there will be very few disadvantages that will come with it causing it to yield a substantial amount of interest. Finding the right property is the most important, a hotel that can be easily accessed and the environment or surrounding is not hostile or unfriendly.

LAND

This is another property you can buy in Cyprus. Investing in this particular property type can yield a lot of profit, as land as a property, appreciates with time giving you a capital appreciatino. It can also serve a great purpose in agricultural aspects. That is to say that it can be used to produce a lot of agricultural products. It should be noted that when making an investment in this type of property it is important to make sure that the property has a road access and it is not isolated or too far from amenities and shops.

REAL ESTATE COSTS IN CYPRUS

The costs or prices of real estate in Cyprus hinge on the type of property and also where it’s located. For instance, a two-bedroom apartment located in Paphos cost between €100,000-€120,000. A 3-bedroom villa with a private swimming pool will cost around€250,000. While in the outskirts of Larnaca, a five-bedroom mansion can costs about €400,000. In other words, there are a lot of cheap real estate options in Cyprus.

With all of these mentioned above, it is clear that obtaining or purchasing a property in Cyprus is a good idea, whether it would be for renting it either long-term or short-term, for permanent living or even for retail purposes, it serves as a positive way to go financially and affordable depending on the location. Another important point is that in Cyprus you can find friendly and professional services in all industries. People in general are very friendly and always smilling. There are very little or no complications that come with purchasing a property either new or resale and in some cases, they help generate interest from the beginning. There is also a low cost of doing business when investing in properties in Cyprus. That is to say, that, buying a property in Cyprus is affordable on reasonable levels.

IS CYPRUS WORTH IT?

Cyprus is a beautiful place to invest by buying real estate. By purchasing a new property worth at least €300,000 (+VAT), you and your family will get much more than a beautiful home. You will also be granded a permanent residency in the island which means you can legally live, work and study in Cyprus.

Cyprus offers a satisfactory tax policy and also boasts a developed infrastructure and an affluent choice of entertainment. It also has a pleasant temperature with almost 300 days of sunshine, has access to the Mediterranean sea, a surplus amount of vineyards in the nucleus hilly area of the island, a splendid view of nature, and extraordinary architecture.

Here are some reasonable benefits of buying a property in Cyprus:

• Liberal foreign investment authority
• Excellent telecommunications infrastructure
• Stable Bank services
• Low crime rates and high life quality
• Friendly people

Paphos is known to be a great place for a holiday, this is one of the reasons why a lot of people tend to buy or purchase property here. There are so many luxury choices which include villas and apartments located in different areas. Paphos is a great place to kick back and relax in the sun. It provides you with so many options whether it is an area of peace and tranquility in a village-like setting or settling at the convenience of what the resort has to offer, Paphos properties provide you with all of these things.

The fair demand placed on Cyprus property does not affect the good value for money. Paphos offers plenty of two-bedroom apartments with communal pools and detached villas for sale with swimming pool. These are usually really good for investors and holiday home purchasers. Another important information to know about the Cyprus holiday rental market is that it gets more regulated and provides more security to landlords than ever before.

The Cyprus rental market keeps enlarging due to people’s holiday habits continue to move from the traditional compilation of tours to self-built packages and locals exploring the countryside.

Paphos is getting more than 2 million tourist a year making it an excellent place for family holidays, hence the demand for holiday properties are on the rise during the hotter months of the year.  The increase demand makes purchasing a property in Paphos an ideal investment that will always be in demand.

Paphos is much more than a holiday resort. It is also recorded as a World Heritage Side from UNESCO. The easy to access the beautiful Cyprus countryside with rural villages where life remains much like it has for decades is always a positive. The prices in Paphos are considered to be relatively reasonable compared to places like Limassol but there might be a tendency for that to change.

The towns' location and its accessibility from the rest the island is another attractive aspect of buying or purchasing property in Paphos. With all this information, it is safe to say that buying property in Cyprus is a good investment.

Copyright. C.N. Property Canvas Ltd.

Author: Christos Nikolaou

BEng Mechanical Engineering, MSc Real Estate, ETEK Property Valuer, Register and Licensed Real Estate Agent.

Christos Nikolaou is the founder and Managing Director of Property Canvas, he holds a license as an Estate Agent from the Association of Real Estate Agents of Cyprus and he is a registered Property Valuer in the Technical and Scientific Chamber of Cyprus (ETEK). He is the author of our “Is Buying Property in Cyprus a Good Investment?” and is a certified advance negotiator.