Larnaca is one of the prime locations in Cyprus to buy properties. The time is now since the real estate market in Larnaca is proliferating. However, to have a secure investment, it is necessary to know how to buy properties in Larnaca legally and financially.
In this article, we will go through important information when it comes to buying properties in Larnaca.
1. Finding the Property in Larnaca
When it comes to buying properties in general, the first step is the most important: finding the most suitable and secure property to buy. The first fundamental two factors that matter the most are the followings:
- The location of the property: The location is king. When you buy a property in a strategic location, you benefit from the lifestyle in that location, but also, your property value of the investment grows in time.
- The developer who built the property: By choosing the right and trustable developer, you can assure that the build quality of your property is high and you won’t be facing any issues in the future. In addition, the correct developer should always offer fair market prices and never overcharge you.
If you are looking to buy properties in Larnaca, then below are our projects built with the highest quality and at the most strategic locations in Larnaca:
2. Visiting the Properties in Larnaca Either In-Person or Virtually
When you have a list of chosen properties to buy in Larnaca, it is time to perform your viewings. The viewing is scheduled and performed on-site with the developer, however, in post-pandemic times, pioneer developers can also offer a virtual tour of their properties for you to view the property remotely.
When viewing the properties, have a goal in mind of what you are looking for. Do not hesitate to ask questions and take your time to experience the property thoroughly.
3. Choose a Property in Larnaca
Once you are finished viewing the properties in Larnaca, then it is time to select one to pursue. That one property should feel suitable for you and your family. The property should give a clear image of you and your family living in it.
4. Reserve Your Chosen Property
Since most of the properties for sale in Larnaca are within the open market, it is vital that you reserve that property by a reservation fee. With your reservation, the developer will take the property off the open market and reserve it for you.
When reserving your property, you and the developer will sign a reservation agreement with all the terms and conditions stated.
If you feel that you need legal advice when signing this reservation, it is good to reach out to a lawyer in Larnaca and ask for help.
5. Proceed with Your Purchase
The purchasing procedure in Cyprus is simple and straightforward. Here are the steps to take to complete your purchase following the reservation of your chosen property:
A Sales Agreement noting all particulars of the property transaction is signed between you and the developer. This agreement can be registered by the Department of Lands and Surveys to secure ownership for you.
Whilst your property is under construction, stage payments will be requested by the developer as each of the various construction stages is completed. These are noted and followed as per the Sales Agreement until the completion and delivery date of the property.
The following once-off transactional costs, over and above the purchase price of the property, should be considered by you as a buyer:
- Value Added Tax (V.A.T.): 5% of the property value as a first time buyer in Cyprus as long as the dwelling is used as the principal and permanent residence, 19% for all other cases.
- Stamp Duty: 0.15-0.20% of the property value
- Sales Agreement deposit: €50 – flat
- Legal Fees (optional)
- Foreign exchange costs (if applicable)
Once your property is completed and ready for delivery, the developer will notify you accordingly.
6. Take Delivery of Your Property in Larnaca
Once all of the above steps are done and the property is completed, you are ready to take delivery of your property. By receiving the keys to your property and all the remaining documents, now you are the legal owner of your property. You can now continue decorating your flat/house with your desired furniture and make it your home.
7. Rent Your Property in Larnaca (Optional)
Expats, investors, and businesses invest in the Cypriot residential market, primarily in rapidly growing markets like Larnaca, Paphos, and Limassol, to reap higher returns on investment (ROIs). Landlording is one of the best ways to transform your property in Larnaca into a profitable business with an active income stream. You can either manage this business yourself or engage a reliable Larnaca-based property management firm to work the rental properties for you.
Here are some steps that will help you seek tenants:
- Market your property on the leading listing platforms to attract potential tenants.
- Develop a screening system to screen potential tenants by investigating their backgrounds, income, etc.
- Conduct interviews with potential tenants to find the right candidate for your property.
- Engage a real estate attorney to perform the legalities and paperwork for the rental contract.
- Establish a mechanism for property management and maintenance.
Landlording is a full-time responsibility, and screening potential tenants is crucial to avoid renting your property to an individual who is likely to use your premises to engage in illegal activities. It’s wise to employ a reliable realtor and property manager to oversee these responsibilities and serve your interests well.
Depending on your needs and preferences, you can market your property as a short-term vacation or a contract-based long-term rental. The rental market is strong, and the rising rental costs tilt the market in the property owner’s favor significantly since the demand is rising and the supply is low.
8. Sell Your Property in the Future
We know that making a profit when you buy properties in Larnaca is just as crucial as making a purchase. If you take the appropriate steps, selling real estate can be very simple and rewarding. The most critical factors are choosing the ideal moment to sell your property, staying in touch with potential buyers, advertising it, and, most significantly, agreeing on your legal rights throughout the transaction.
The right price for the real estate must first be agreed upon with a reputable real estate business. The next thing you need to do is make sure your home is appropriately advertised. A positive outcome will always result from accurately and effectively communicating with those who wish to view the property while showing them around. These are tasks that experts can complete with ease. Finally, before you accept a decent offer, always get the advice of a trustworthy attorney to help you make a secure sale.
9. Advantages of Buying a Property in Larnaca
- Low prices: Larnaca is an inexpensive city both in terms of living and cost per square meter. Land, apartments, townhouses, and cottages can be almost one and a half times cheaper in comparison with Limassol and Nicosia.
- Ideal for short-term rentals: Larnaca is a popular tourist destination all year round due to its proximity to the largest international airport and the capital, which provides an influx of foreign tourists who are not averse to relaxing on the warm sea coast. Larnaca has many undeniable advantages such as beautiful nature, mild and pleasant climate, and well-developed agritourism.
- Historical charm: Larnaca is one of the oldest settlements in Cyprus and has many ancient architectural and cultural attractions.
- Secure leisurely lifestyle: Larnaca is a safe city with friendly residents and low-tide beaches.
10.Current Trends in Larnaca's Property Market
In 2023, Larnaca’s property market is witnessing several notable trends that are shaping the real estate landscape in this vibrant city. One prominent trend is the increased demand for sustainable and eco-friendly properties, as environmentally conscious buyers seek residences that align with modern green living standards. Additionally, there’s a noticeable surge in the popularity of smart homes, with buyers showing a preference for integrated technologies that enhance security, energy efficiency, and overall convenience.
The city’s coastal areas are experiencing a resurgence in interest, driven by a desire for waterfront living and the potential for lucrative short-term rentals. Moreover, the rise of remote work has prompted a growing interest in properties equipped with home offices and high-speed internet, catering to the evolving needs of a more flexible workforce. These trends collectively underscore the dynamic nature of Larnaca’s real estate market, emphasizing the importance of staying informed for those considering property investments in the region.
Suppose you are thinking of buying properties in Larnaca, then you are looking at a unique opportunity. You can read about our other articles with our blog section about why Larnaca is a great city to purchase properties right now.