The property market in Cyprus is divided into two primary sectors: the metropolitan centres of Nicosia, Limassol, and Larnaca, and the beach resort districts of Paphos and Famagusta, which are popular with people wishing to sunbathe. Following three years of strong improvement, the market was performing significantly better than it had in a long time up to 2020. Below we provide the complete guide to buying property in Cyprus.
Why move to Cyprus?
First of all Cyprus is a Mediterranean island, located southeast of Greece and perfectly positioned for long summers. It is considered one of the most popular places for expats when looking for overseas property.
To buy a property in Cyprus
is still relatively straight forward for Non EU citizens. Due to the excellent weather its an ideal situation to own a holiday home in Cyprus due to the high amount of tourists you shouldn't struggle to rent out your property. It is also seen as one of the safest places in Europe and with a big expat community, most consider retiring to Cyprus.
With Cyrpus pushing to become one of the technical centres of Europe and also having the stunning coastline and beach resorts moving to Cyprus could give you the best of both worlds for moving your family to Cyprus.
Can foreigners purchase real estate in Cyprus?
In a nutshell, yes, foreigners may buy property in Cyprus. Furthermore, compared to many European nations, it is simpler to do so here.
EU nationals can buy property in Cyprus with no limitations. It is still feasible for UK nationals, however, the restrictions have altered since the UK left the EU and would now follow the same process as other non-EU citizens.
A step-by-step guide to buying property in Cyprus as a foreigner:
The procedures for purchasing property are comparable to those in the United Kingdom, with a few exceptions. The following are the important steps:
- Arrange your mortgage - If you're not a cash buyer, look into mortgages and loans first to see how much banks will offer you before you start looking.
- Appoint a local lawyer who is independent of the developer/vendor and estate agent engaged in the sale to ensure your interests are protected.
- Begin your home search - websites like Rightmove Overseas are a good place to start.
- Once you've discovered a home, you need to see it in person to ensure that it's in good shape. Ensure the property isn't mortgaged already and is the rightful owner of the property.
- Request permission to purchase a property in writing from the Council of Ministers.
- Sign the contract of sale, which will also be signed by the vendor.
- Transfer the money for the property purchase.
- Complete the transaction - once approvals have been obtained and finances have been validated, the property will be registered in your name.
Investment in Cyprus:
If you started looking into acquiring an overseas home, this is a reasonable and crucial question to ask, since it has a lot to do with your money and economic situation. Investing in a property requires thorough research around the part of Cyprus, the value of the property and the type of property you want to buy.
Here are some of the best places to buy property in Cyprus:
For decades, real estate in Limassol, Cyprus's second biggest city, has been in high demand among investors. It is an important industrial, cultural, tourist, and economic centre, as well as the island's biggest port. Its infrastructure is rapidly expanding, particularly in the entertainment industry. World-Class corporations have established branches here.
Among the several advantages for investors are:
The demand for homes and commercial assets in this city is high, and it is not seasonal, as it is in other locations. Investing is profitable. Limassol has greater real estate prices than other cities in Cyprus, although the property may also be sold more profitably. Furthermore, visitor activity is high from April to November
The city's commercial and cultural life, as well as the return on investment in real estate in these areas, are busy all year (a unique advantage for the settlements of Cyprus). Trade, entertainment, and social systems are all highly established.
Property options range from flats in seaside skyscrapers to villas and apartments in residential regions. The city is promising for the construction industry since it is home to multinational partners from a range of businesses.
Another appealing characteristic is the well-established Russian-speaking community.
Despite the coronavirus pandemic's numerous ups and downs, a record amount of real estate transactions were completed in Limassol in the tough year of 2020. Volumes fell by only 30%.
If you enjoy the beach and a slower pace of life, as well as discovering historical sites, then purchasing real estate in Paphos, Cyprus is the ideal way to go. Paphos has its own international airport, making it excellent for regular travellers with convenient access to Limassol. As a result, several Limassol workers relocate to Paphos to save money on rent, as costs in Paphos are lower than in Limassol. The bulk of houses for sale here are freehold detached villas with swimming pools and apartments/flats with communal swimming pools, providing a more relaxed setting than the rest of Cyprus.
It's easy to see why Paphos has always been popular with British purchasers. You have great beaches, from Coral Bay to more quiet alternatives on the Akamas Peninsula outside of the city. There are plenty of good tavernas, taverns, and restaurants in Paphos and the neighbouring towns and villages, and Paphos Airport provides year-round flights back to the UK.
Nicosia, the capital of Cyprus and the republic's political, geographical, economic, and cultural core, ranks third in popularity. This city is well-known for its rich cultural legacy, stunning scenery, and an abundance of civilizational landmarks renowned well beyond the country's boundaries.
If you wish to live an active life, purchase real estate in Cyprus in Nicosia, which is a contemporary, populated, European-style city with everything you need.
Despite this, Cyprus's capital has always been seen as less appealing to real estate investors due to its distance from the shore. Tourists are drawn here solely for the cultural legacy; rental housing here is significantly inferior in terms of demand to Cypriot destinations.
Many investors are drawn to the possibility to buy a home in Larnaca, another significant city in Cyprus with a clean, mild coastline and a slower pace of life than the preceding cities. However, the demand for real estate in Larnaca is not as great and, in general, is ambiguous: while many tourists visit, Europeans are not eager to relocate to Larnaca.
What an investor should think about:
It is more advantageous to rent out rather than sell housing in this area.
Residential property prices are several times cheaper than in Limassol, Nicosia, and Paphos.
The building industry is not particularly active – buying a property in Larnaca in the secondary sector is many times more likely.
Local inhabitants are the primary buyers of real estate. Apartments, commercial property, and hotel amenities are popular, while villas are scarce.
Nonetheless, the infrastructure is well-developed here: there is a harbour, an airport, and cultural, social, and recreational facilities: Larnaca is a promising location.
Ayia Napa, located in the Famagusta district in the island's south, is justifiably known as the beach party capital of Cyprus. During the peak season, it offers entertainment events including the top DJs worldwide. The city boasts its own beaches with white sand and clean water, attracting a large number of tourists.
What an investor must consider:
There is a big influx of visitors, as well as a developed entertainment infrastructure — the demand for rental homes is quite strong, and real estate investments are profitable.
However, keep in mind that Ayia Napa is a seasonal resort, thus revenues fluctuate. Renting out properties is only advantageous during the summer.
Located on Cyprus's east coast, it boasts some of the greatest beaches in the country, ideal for sunbathing, swimming, and watersports. Ayia Napa is also nearby. It was once known for its clubs, but it is now a revitalized, family-oriented resort.
Things to avoid while buying property in Cyprus:
Developers frequently take out a mortgage on land or property10, for which you would be responsible if they went bankrupt and you signed a contract to buy it. Appoint an impartial lawyer to confirm that no mortgages have been placed on the land before to buying, ensuring that you do not run into problems later. Request a Land Search Certificate from the Land Registry through your lawyer.
Be careful that purchasing property in northern Cyprus carries considerable risk. Land ownership is frequently challenged in the north as a result of claims of ownership coming from individuals evacuated in 1974 10. Buying such property may result in legal action. As a result, if you want to buy in the north of the island, it's a good idea to rent first and learn about the local market. A skilled lawyer should also assist you in obtaining property with the necessary form of irrevocable deeds.
What kind of property to look for?
There are several homes to select from in Cyprus. You have the option of purchasing a vacation house to use on occasion, a property to rent out on a long-term basis, or a residential home for permanent living.
There are several solutions available to you. From isolated villas with stunning views and private swimming pools to flats in tranquil areas, sophisticated urban dwellings, and bungalows in the heart of metropolitan districts. You may buy or acquire a resale home and renovate it to your own wish or taste, or you can purchase a new house.
Many individuals find it tempting to possess a vacation house that they can use periodically while also earning money by renting it out when they are not using it. There are several alternatives for holiday properties, ranging from flats with common pools to detached villas with private pools. Getting or getting a holiday villa by the shore or a property with a pool as a vacation home is a terrific idea. Holiday rentals are a good investment once you have enough money. In a booming real estate market, you may gain from capital proliferation.
This is another house up for purchase in Cyprus. Investing in this form of property may provide a lot of profit since land, as a property, appreciates over time, offering you capital appreciation. It can also be quite useful in agricultural applications. That is, it may be utilized to create a wide range of agricultural goods. It should be emphasized that while investing in this sort of property, it is critical to ensure that it has road access and is not isolated or too distant from amenities and businesses.
The most successful investment in Cyprus will be in residential and commercial real estate
in Limassol and Paphos. Both locations have an excellent assortment of property and pricing. But it all depends on your objectives and budget:
Accommodation in Larnaca or Nicosia is also ideal if you are doing business in Cyprus.
If you're searching for a summer vacation home, consider real estate in Paphos and the Famagusta region.
If you wish to reside on the island permanently or only for the winter, you will discover possibilities in Limassol, Larnaca, Paphos, and Nicosia.
It's all up to you. Anyway, Cyprus is now one of the most rewarding countries for real estate investments.