Here, we update you on recent changes to the Cyprus property market, and what to expect in the future.
The last few months have seen an increase in real estate activity in Cyprus. Apartments and houses are selling particularly well, with retailing and warehousing real estate activity having stabilised after a period of struggle. Although, we are interested in helping you to move overseas, so we are not too worried about retail and warehouses.
What do the figures say?
In the latest report on Cyprus from the Royal Institution of Chartered Surveyors (RICS), the figures show a consistent growth in market value. The year-on-year comparison of values saw an islandwide increase in all asset types, with apartments increasing by 8.09%, followed by houses at 4.62%.
The greatest increase in market value was seen in Larnaca and Famagusta. Growth in Larnaca is unsurprising. Larnaca is known for its palm-tree seafront, Finikoudes; its historical sites such as, the Church of Saint Lazarus and the ruins of Citium, the ancient city on which it was built; and its marina. The area is home to Larnaca International Airport, the country’s primary connection to the world. Currently, one-bedroom apartments in Larnaca can be purchased for €100,000. For family villas, the starting price would be around €250,000.
Cyprus is seeing an increasing number of new builds crop up. These, inevitably, come with higher price tags. For example, a one-bedroom bungalow in Larnaca can be purchased for €64,000. But it would come needing serious renovations to make it comfortably habitable. So, even if it sounds like a steal, the cost of renovation can bring the price closer to that of a newer apartment. In contrast, new developments are typically priced between €100,000 and €200,000. For this amount, you can expect spacious rooms; air-conditioning throughout the property; and some even have a communal swimming pool.
Holiday homes – both apartments and houses – have been experiencing an overall upward trend in their values. There was a downward trend from the beginning of 2020 to mid 2021, this was likely due to the coronavirus pandemic. Moreover, since 2021, holiday properties have continued to see an upward trend in their values.
There was also an increase in rental values: the biggest increase was in houses, followed by apartments.
Given the increase in rental values, if you were to buy a holiday home in Cyprus, with the desire to rent it out when you are not there, then you are in luck. About one million Brits visit Cyprus each year, so renting out won’t be difficult.
Although, it should be noted that foreigners are restricted to purchasing one home in Cyprus.
As the world recovers from the coronavirus pandemic, so too has real estate in Cyprus. Furthermore, the world opening up has seen an increase in the market value of holiday homes. Naturally, the world opening up has also led to more people craving sunshine holidays. So, renting out a holiday home in Cyprus is a promising option. Experts predict that Cyprus’ real estate growth will steadily continue.