For everyone who loves the island of Cyprus and is looking for a reliable way to invest, in this article we look at investing in property in Cyprus with all the pitfalls of this issue.
The interest of Russian citizens in Cyprus as a holiday destination appeared at the end of the last century. At first, flying to Cyprus was something exotic, then this resort became more and more popular.
So popular that many did not want to limit themselves to short-term trips: Cyprus began to be seen as a suitable place to buy a home and property for investment.
The advantages of Cyprus still attract Russian tourists to this day: you don’t need a visa to travel, the island has a pleasant climate, and there are many beautiful places to stay. In a word, Cyprus is an ideal place to take a break from the noisy life in the metropolis.
Until now, Cyprus has not lost its attractiveness in the face of Russian investors. And, if you want to become one of them, then let’s take a closer look at the features of investing in real estate in Cyprus.
Investing in property in Cyprus: then and now
If we consider property prices in Cyprus in the early 2000s, they can be called ridiculous compared to what is happening on the market now.
At the beginning of the 21st century, the cost of a 3-bedroom apartment in Cyprus on the seashore was 90,000 €. Now for so much you can buy not new housing only in villages near cities such as Paphos, Limassol, Larnaca, Nicosia. Prices for plots also increased by almost 10 times.
Over the past 30 years, prices have risen significantly, so those who bought a home then are now in a big plus. The only thing that could have bothered investors of the 2000s was the crisis of 2013, but even that was left behind.
Experts predict that this trend will continue for at least another 10 years. You can safely invest in property in Cyprus and expect that in a decade its value will increase by 3-10 times.
However, there have been cases when they bought housing in places with low demand for a relatively high cost. If the place of purchase is not the coastline, not the resort area or not the city center, then there is a high probability that you will not win here in the price in the future. As practice shows, at best, the price will not change or slightly increase, at worst, in 10-20 years, on the contrary, it will fall due to the age of the house in an unclaimed area.
How the situation has changed: invest in property in Cyprus now
First of all, considering real estate as a way of investing investments, you need to be more careful. Unfortunately for many investors, prices are not skyrocketing now as they used to be. You have more risks, and the chances of multiplying your fortune by 10 times are much less than if you invested 20 years ago.
How to choose property for investment in Cyprus:
- consider new objects: cottages or apartment buildings. Moreover, investing in an object at the construction stage, you can save a lot.
- pay attention to Limassol, this city of Cyprus is the most popular among tourists and immigrants, in addition, there are entire blocks of Russian-speaking residents.
- give preference to housing by the sea. Property that is close to the sea will never lose popularity. The main thing at the same time is to make sure that the house is built correctly and there is no high humidity. Otherwise, you run the risk of mold – the enemy of investing in the long term.
- if you are considering resales, then first of all take into account 1 line of the sea.
These points will help you take the first step: choose a direction and calculate the budget. But there are still thousands of nuances, because in order to buy property in Cyprus for investment, you need to take the matter seriously.
But it is worth remembering that the most suitable investment options are often the most expensive. And even with this condition, there are risks if you make the wrong choice when buying.
It is necessary to sensibly assess the situation and analyze the market. And if you wish, it is better to turn to experts who work on the island and know which property in Cyprus is better to invest in. A reliable real estate agency can become such experts.
Investing in property in Cyprus: other cities
We have already mentioned that Limassol is considered to be the most reliable option for long-term investment. But what about Larnaca, Paphos, Famagusta region and other cities?
The fact is that when buying real estate in these cities, you run the risk of not making money on increasing its value in the long term. But that doesn’t mean they should be eliminated entirely.
Larnaca, Paphos and other cities are good options for those on a tight budget. Real estate in these cities is 30-50% cheaper than in Limassol, as well as Nicosia. Here you can find a budget option in order to buy a property in Cyprus.
Moreover, real estate in Cyprus is not necessarily considered as a source of income in the long term. At a minimum, this is a great option for yourself: a house by the sea, where you can come or move on a permanent basis (below in this article we will tell you how your property helps with obtaining a residence permit).
But you can also rent out property in Cyprus by the sea. This is a good way to generate income on a permanent basis, because property in Cyprus does not stand idle for long. Even in the suburbs, there may be people who rent your housing. The only thing is, if in Limassol you will surely be able to profit from renting property in Cyprus, in other cities everything is different. If we consider Larnaca, Paphos, Troodos and other cities, there is a large influx of tenants during the holiday season (from May to October).
Real estate in Cyprus as an advantage when obtaining a residence permit
Obtaining a residence permit or permanent residence is also a kind of investment in your future. And in obtaining any type of residence, having your own property in Cyprus is of great importance.
- to obtain a permanent residence permit, you need to purchase real estate worth at least 300,000 €.
- with a temporary one, everything is much simpler: to get a temporary residence permit, it is enough even just to rent a property for a long time (from 1 year). Buying your own property in Cyprus – the cost and other details do not matter – will be a great advantage for you when obtaining a residence permit.
Investing in property in Cyprus: pros and cons
Of the main advantages:
- real estate is constantly growing in price – from 3% per year
- advantage in obtaining permanent residence or residence permit
- convenient location in Europe
- high demand for rental housing in Cyprus
- Annual yield of real estate – from 4%.
- Cyprus is a pleasant country for living and profitable for investment
- high cost of real estate in Cyprus by the sea
- hot weather in summer and high humidity
- there are difficulties with official employment even with a residence permit
- left-hand traffic on the roads
Investing in property in Cyprus: a summary
Thus, without knowledge in the topic of investment, you should not rely on the widespread opinion that investing in Cyprus is profitable. This statement is true, but not in all circumstances.
There are different ways to profit from real estate in Cyprus. But before you buy a property in Cyprus for the purpose of investment, it is better to understand this issue a little more.From the article, you learned the main nuances that deserve attention, but that’s not all.
If you do not have a lot of time for an independent search, but have a desire to invest your money in real estate in Cyprus, you can entrust this issue to experts. A real estate agency with many years of experience in Cyprus real estate is ready to help you with this. Moreover, you do not have to pay for the services of the agency, this issue is taken over by the real estate seller.