NEW HOMES: THE BEST INVESTMENT IN THE PAPHOS MARKET TODAY?!

It may be more advantageous to invest in new homes than in resale homes in the current market, particularly in the Paphos region. To help readers make an informed choice, this article atempts to offer insights into the benefits of new properties along with relevant data.

Currently, a two-bedroom apartment that is 15 years old costs just under €200,000, while a brand-new apartment costs about €250,000. Why then should you think about spending the extra €50,000? 

Modern features and amenities: New properties offer the latest in design and technology, including energy-efficient appliances and smart home systems. Through the use of innovative storage options and built-in cabinets, designers maximize space use. Large windows framing, thermal insulated walls, indoor gardens, and live green walls all contribute to a peaceful, happy, and overall better living environment.

Customization options: The flexibility to personalize a property to suit your preferences is a big benefit of new homes. Pick layouts, materials, and finishes that fit your lifestyle. According to a 2015 research by the Royal Institute of Chartered Surveyors (RICS), homebuyers are increasingly favoring customized homes that suit their preferences.

Lower maintenance costs: Compared to older homes, newer properties typically need less upkeep and immediate repairs. In the first years, maintenance costs for newly constructed homes typically amount to roughly 1% of the purchase price, but they might range from 2% to 4% for resale homes. Additionally, an Energy Efficiency Class A home (which is the norm on new constructions) can save about €80 per month on energy costs depending on an average home size of 150 sqm with an EPC Class C.

Warranty and guarantees: The builders or developers, of new homes provide warranties and guarantees that cover building flaws, significant structural problems, and particular systems and equipment. The typical warranty periods in Cyprus are up to 10 years for the building, 2 years for the plumbing and electrical systems, and 1 year for the appliances.

Resale homes are frequently found in well-established areas close to amenities. The area may need to be revitalized, nevertheless, due to its outdated aspect. Even though resale homes typically cost less to buy, it's important to factor in the cost of renovations and overall return on investment. Furthermore, compared to older properties, newer properties can be rented for greater monthly fees. Finally, there is frequently room for negotiating when buying a resale property because owners may be more accommodating than developers of new properties.

Considering your budget and finances, carefully assess if you can afford new homes, which offer modern features, customization options, and warranty coverage, favoring them over resale houses. Remember to evaluate potential revival projects and repair expenditures with resale homes. If affordable, new properties align with current trends for individualized living spaces, improving your quality of life and potential long-term profits through renting. The extra investment of around €50,000 for new properties, equivalent to €3,500 per year or €280 per month over 15 years, becomes a wise financial decision if feasible. By evaluating your specific needs, preferences, and financial considerations, you can make an informed choice for a fulfilling homeownership experience within your budget.

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 “NEW HOMES: THE BEST INVESTMENT IN THE PAPHOS MARKET TODAY?!” and is a certified advance negotiator.