21.06.2021
Demand for housing turned towards older buildings. The reasons were the increase in construction costs, the limited supply of residential real estate in the central areas of the city, the burden of VAT and the lack of ownership of new apartments. Age buildings require repair and modernization. In the past, old objects were of little interest and were considered of little value.
With a change in attitude and a willingness to ennoble such houses, they have acquired a new value. When taking into account the difference in price, VAT, availability of permits, this makes sense. The difference in purchase price is much larger than the investment required in the old fund.
When considering purchasing an old apartment, the buyer should keep in mind the quality of the common areas, the possible presence of hidden defects (the same applies to new apartments, but to a lesser extent), the quality of the project, the area, and so on.
The trend towards buying older apartments has in turn created a need for small building contractors to carry out the necessary repairs and upgrades. Such organizations should provide a wide range of services, including construction, decoration, woodwork, electrical and mechanical work.
Cyprus lacks such companies so much that we have seen Greek contractors doing this type of renovation work here. That being said, it’s important to make sure the builders are registered and have the proper license, otherwise you could run into legal problems.
Older buildings (say 10 or 15 years old) tend to be more spacious than new ones. However, living space is smaller.Verandas, kitchen and dining areas are separated, there are no private bathrooms attached to all bedrooms, often there is not enough storage space and enough parking spaces.
Newer buildings have fewer problems than older ones, but may require capital investment. On the other hand, new buildings, which have better conditions, have higher overall costs. This factor is exacerbated by the fact that many residents do not pay their bills. This problem is significant and makes the operation of apartment buildings and development projects a serious problem. It also causes resentment among the residents.
On the one hand, the government is trying to reduce property values and rents, but on the other hand, its inaction on the issue of general spending creates problems.
There is a clear increase in demand for old apartments, especially in city centers, which is also driven by an increase in rental demand from students, young families and Airbnbs owners.
When we compare the cost of renting in Cyprus with prices in other EU countries, Cyprus is a relatively cheap place to rent. EU statistics show that the monthly rent for two-bedroom apartments in European cities is as follows:
Vienna – 1250 euros;
Brussels – 1090 euros;
Sofia – 1150 euros;
Helsinki – 1550 euros;
Paris – 2200 euros;
Berlin – 1400 euros;
Athens – 1000 euros;
Dublin – 2150 euros;
Valletta – 1200 euros;
Rome – 750 euros;
Bucharest – 860 euros;
Nicosia – 740 euros.
However, salaries in Cyprus are also lower compared to other countries.Recently, we have provided a Japanese client with a high-quality three-bedroom apartment for rent. He was very excited about the €2,000 per month rent, saying, “Do you know how much we pay for a property like this in Tokyo? At least 4 times more!”.
