We analyze what constitutes inexpensive real estate in Cyprus and identify the best city to buy it in. Buying property in Cyprus at a low cost is a common request often seen online and one that we have personally encountered many times. Some people want to move closer to the sea but have a limited budget, while others consider buying a home in Cyprus as a profitable investment.
In any case, it’s important to understand what “cheap” really means in the context of Cyprus’s real estate market. In this article, we explore the price diversity across Cyprus and highlight the most budget-friendly options. For example, inexpensive real estate in Paphos will have a different price range compared to Limassol.
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What is inexpensive property in Cyprus and how much does it cost
The indicators that determine the price of an apartment are quite predictable – this is its location, the presence of previous residents, the price per square meter. m, repair, number of bedrooms and contents: furniture, appliances, etc.
It is quite predictable that the budget option will be located away from the center and have a small square. Most often this is not a new building, but already inhabited housing. But even two absolutely identical apartments (houses) with these characteristics can have catastrophically different prices.
Inexpensive property in Limassol and Paphos
If you have 100,000 € in your pocket, you can afford a small studio (40-50 sqm) in a village near Limassol, where real estate is the most expensive in Cyprus. For comparison, in the suburbs of Paphos, the same amount can get you a property with an area of 50-60 square meters.
An apartment closer to the center of Limassol, around 35-40 sqm, will cost about 150,000 €, whereas in Paphos, you can find a property of 60-100 sqm for around 110,000 €. The difference is clear: you can save money and buy a more spacious property in Paphos that is still not too far from the center.
If we consider houses, a small house with 1-2 bedrooms in the suburbs of Limassol will cost around 150,000 €, while in Paphos, you can find a village house of 70-100 sqm for about 54,000 €. Houses of 90-100 sqm in areas closer to Paphos will cost about twice as much—starting from 100,000 €. Even so, these prices are significantly lower compared to Limassol.
To put it into perspective, the cost per square meter of an apartment in Paphos is about 1,500 € cheaper than in Limassol, and for houses, the difference is around 500 €. This is a substantial difference, so if your primary goal is to save money, buying property in Paphos is a better option.
We’ve compared two of the most popular cities in Cyprus, both of which are ideal for living and renting out properties. However, there are other, less common options worth considering.
Affordable property in Nicosia, Larnaca and Famagusta area
Nicosia, the capital of Cyprus, is often considered more for residential living than for investment in rental properties. This is because property prices in Nicosia are similar to those in Limassol, but the demand from tourists is much lower, making it less profitable for short-term rentals.
On the other hand, Larnaca offers more affordable real estate prices, typically 15-20% lower than in other cities. However, while Larnaca can be a good option for buying property for personal use, the rental demand is mostly seasonal, peaking from May to October. For the remaining six months, your investment may not generate income, leading to potential periods of vacancy.
The same seasonal trend applies to Ayia Napa, Protaras, and the Famagusta region. While renting out property in these areas during the holiday season can be profitable, long-term leases to a single tenant might not provide a quick return on investment.
While these general trends hold, there are always opportunities to purchase properties below market value, such as through urgent sales. These opportunities can provide significant benefits, but they require careful searching and quick action.
Working with a real estate agency can be particularly advantageous in finding such deals. Agencies can help you identify properties within your budget and locate special offers that might otherwise be difficult to find.
Buy property in Cyprus cheap: what are the benefits
Inexpensive Housing in Cyprus: Disadvantages
While the idea of buying inexpensive housing in Cyprus might seem appealing, there are some potential downsides to consider.
Need for Additional Finishing
One of the main drawbacks of cheaper properties in Cyprus is the need for additional investment. Often, lower-priced homes are older and may have been neglected over time, requiring significant effort and expense to bring them up to a livable standard. It’s important to factor in these potential costs when budgeting for your purchase. Additionally, if you plan to rent out the apartment, you’ll need to furnish it, including appliances and a functional kitchen, which can add to your expenses.
Invisible Pitfalls
Beyond the visible shortcomings, there may be hidden issues that aren’t immediately apparent. For instance, old pipes might be leaking, drafts could be coming in through windows, or there might be ventilation problems. These issues can sometimes be overlooked even during a thorough inspection. Working with a knowledgeable realtor can be beneficial, as they can often spot these subtle issues based on their experience and help you avoid costly surprises.
Utility Bills and Home Inspections
When renting out an apartment, it’s essential to account for utility bills, especially if you are responsible for covering these costs. If the apartment remains vacant for extended periods, you could find yourself at a financial loss. Additionally, you should consider the costs associated with traveling to Cyprus to inspect the property yourself. This can be particularly expensive if you’re residing in another country.
We’ve explored the potential downsides of buying inexpensive housing in Cyprus. It’s important to weigh these considerations carefully when deciding whether to proceed with such a purchase. Sometimes, paying a bit more for a property in better condition might save you from unforeseen expenses and headaches down the line.
