When purchasing property in Cyprus, you may face a choice between new developments and secondary properties. Secondary real estate refers to properties that have been previously owned and are being resold. In this article, we will explore the advantages and disadvantages of buying secondary real estate in Cyprus.
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Pros of Secondary Real Estate
1. Variety of Options
The secondary real estate market in Cyprus offers a wide range of properties with different types and characteristics. You can find apartments, houses, or villas with varying numbers of rooms, locations, and infrastructure. This allows you to find a property that meets your needs and preferences.
2. Lower Price
One of the advantages of secondary real estate is its lower price compared to new developments. Sellers of secondary properties may be willing to lower the price or offer additional benefits to attract buyers. This can be an attractive aspect when planning your budget for purchasing property in Cyprus.
3. Established Infrastructure and Amenities
Secondary real estate is usually located in established areas with developed infrastructure and amenities. Nearby, you may find schools, shops, restaurants, medical facilities, and other conveniences, ensuring comfortable living and avoiding the construction work often associated with new developments.
4. Ready for Living or Renting
Buying secondary real estate allows you to acquire a property that is already ready for living or renting. You can move in immediately or start generating rental income, making secondary real estate appealing to those who want to quickly utilize their investment.
Cons of Secondary Real Estate
1. Wear and Tear, and Repairs
One of the main disadvantages of secondary real estate is the possibility of wear and tear and the need for repairs. When buying a pre-owned property, you may face the need for investment in repairs or modernization, which could require additional costs and time.
2. Limited Choice of Styles and Design
Purchasing secondary real estate means you are limited in your choice of styles and design. Unlike new developments, where you can make changes and customize the interior to your taste, secondary real estate may offer limited opportunities for alterations and adaptation to your preferences.
3. Limited Warranties and Legal Checks
When buying secondary real estate, especially if the property is being resold, there can be risks associated with the lack of warranties and legal issues. It is important to conduct thorough legal checks to ensure the transaction is clear and free of encumbrances.
Secondary Real Estate in Cyprus in 2024
In 2024, the demand for secondary real estate in Cyprus remains stable, with prices varying depending on location and property type. The average cost of residential property is around €260,000, with most houses and apartments priced under €250,000. The most popular properties are apartments under €250,000, especially in urban areas where the urban population has increased from 50% to 60% over the past five years.
The most sought-after areas for property purchases are Limassol, Paphos, and Nicosia, with Limassol leading in sales of higher-end properties. Interestingly, foreigners are more likely to buy property in southern coastal areas such as Limassol, Paphos, and Larnaca.
In Nicosia, high demand is driven by its developed infrastructure and educational institutions. In Larnaca, known for its Mediterranean beaches, apartment prices start at €1,400 per square meter. Paphos, popular among foreigners, offers apartments at prices ranging from €1,100 to €1,600 per square meter.
Investing in real estate in Cyprus also presents an attractive prospect for rental income, with project yields ranging from 6% to 8.5% per year. Property values on the island continue to rise, making it a good hedge against inflation.
To obtain permanent residence in Cyprus, you are required to purchase property worth at least €300,000. This can include one property or two, including both residential and commercial real estate. It’s important to note that residential property for permanent residence must be purchased from the new build market, while commercial property can be acquired on the secondary market.
Overall, the secondary real estate market in Cyprus in 2024 offers diverse investment opportunities for both local residents and foreign buyers.
Buying secondary real estate in Cyprus has its pros and cons. It offers a wide selection of properties at lower prices and established infrastructure, but may require additional costs for repairs and have limitations in style and design. It’s important to carefully weigh all aspects before making a decision and work with reliable agents and lawyers to ensure a successful purchase of secondary real estate in Cyprus.
