Rising construction costs, a limited supply of suitable apartments in residential and central areas, VAT and the lack of documents confirming ownership have changed the market’s interest in acquiring old houses.
In most cases, these properties are in need of modernization and renovation, and pre-crisis residential buildings that would have been considered worn out are also being modernized and renovated, highlighting their future potential and modernization capabilities.
In all these calculations of the comparative cost of a new or used apartment, VAT plays a role (5% or 19%), as well as separate title deeds (for older apartments), which offer easier financing.
For a second-hand apartment of 100 sq.m. , the average sales price should be around 1000 euros/ sq.m ., and for an equivalent new apartment – 2200-2500 euros/ sq.m .
This condition does not apply to Limassol and other coastal locations (add transfer and VAT for new apartments to the difference in cost).
This shift to older properties has increased the demand for the services of microcontractors , who can offer the full range of building restoration, such as carpentry, decorating, and electrical and mechanical installations. The difference in cost in the example above exceeds 120,000–140,000 euros, which is much higher compared to the cost of the upgrade. When purchasing older apartments, you should consider the quality of the overall costs, the presence of any hidden defects, as well as the quality of the neighboring apartments.
Based on the experience of real estate agents and according to some parameters, buying and modernizing an old property is more economical than a new one.
A similar increase in demand for old apartments is observed in Greece. According to a recent report from real estate agencies, 70% of buyers preferred to buy older apartments (before 1988).
It is noteworthy that now there is a trend on the market towards the sale of small apartments with an area of about 70 sq.m. In response to this situation , microcontractors from Greece have begun to emerge and this trend is expected to continue.
There is a noticeable increase in demand for older apartments in the city center, partly due to rising rents for students. Purchasing, upgrading and modifying these rental properties is particularly beneficial.