15.03.2024
Property platform INDEX on Friday published a report identifying Larnaca as a key Cyprus destination for investors and homebuyers looking for profitable property ventures, citing a recent analysis of the local property sector.
“This discovery comes at a time when the sector has seen significant influx of both institutional and retail investors, driven by the desire for higher investment returns amid persistently low interest rates on deposits,” the company said. Analysis of data obtained from more than 4,200 properties on INDEX revealed a sharp discrepancy in the prices of new and used properties in Larnaca ,” the company explained. The analysis showed that the average price per square meter of a new property is 3,619 euros, while the cost of a used property is 2,289 euros per square meter.
INDEX’s analysis takes into account 19% VAT on new assets and 4% transfer fee (TTF) on used assets. This significant discount of 3.6% on used properties makes Larnaca an attractive investment destination. Moreover, noticeable but smaller differences in the prices of new and used properties were also observed in other regions, including Limassol (25% difference), Nicosia (27%), Paphos (27%) and Famagusta (21%).
These findings are based on an analysis of 24,773 new properties and 4,539 pre-owned properties, a sample size robust enough to provide a complete picture of the current market situation.
The company stated that “the information provided by INDEX is invaluable: it highlights Larnaca as a rising star in the real estate sector, while also highlighting its unparalleled offerings in terms of investment and housing opportunities, making it an ideal destination for investors looking to resell real estate for profit and for individuals seeking to purchase their dream home.”
