Residential Property Investment
Residential property investment is very popular in Cyprus. Foreign demand for high quality housing has been a big driver in helping the islands economy for many years and the call for luxury villas and apartments have proven Cyprus’ attractiveness. With a warm climate and low crime rate as well as outstanding foreign schooling system it is easy to understand why investors come to Cyprus.
We will be going through all the basic information you need when considering investment in residential real estate in Cyprus in this article.
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What is Residential Property?
Why Invest in Residential Property
Many investors will typically find tenants for their properties, gaining a passive income. Unlike commercial properties, residential ones can be easier to maintain on your own. Rent collection as well as repairs and maintenance can often be resolved directly by yourself meaning, as an investor you save money as you do not need to hire a property manager.
Residential property investment in Cyprus has many perks. To start, it is easy to rent a luxury villa or apartments out to tourists, allowing the investor to use the property whenever they wish. If you do wish to do this, then know Cyprus has the advantage of a long season in comparison to many other Mediterranean islands and countries.
Investors also benefit from low taxation and the possibility of EU membership when purchasing residential property in Cyprus. The low cost of living as well as the low crime rates also attract people to the island.
Areas for Residential Property Investment in Cyprus
There are also great opportunities for investors to build their portfolio with multiple investments in multiple cities. Cyprus has five major locations, each providing different lifestyles and therefore unique residential properties.
The first location is the coastal city of Larnaca which is arguably becoming the investment hub of Cyprus. This city has recently provided several high-quality projects, that have marked Larnaca on the map. As Larnaca hosts Cyprus’ primary airport and offers easy access to all other cities it seems inevitable that investors will purchase in Larnaca. The city offers luxury apartments in the city center, 5 minutes away from the beach front of Finikoudes, as well as elegant villas on the outskirts of the city. You could say that Larnaca offers an investor almost any type of property or access to develop any property they wish.
Secondly, we have the capital, Nicosia. This is the largest city in Cyprus and is known as the financial and legal hub of the island. Although Nicosia is more popular for commercial property investment because of its work style environment, it still needs residential investment as commuting is not popular within the islands culture.
Next, we have Limassol. A very common choice for foreign investors due to the continuous growth and development of the city. Limassol is the home of the largest port in Cyprus and known for its cosmopolitan ambiance. Although it is very popular with investors, Limassol is the most expensive city to invest in for residential property.
If you are considering investing in beach side residential property outside of city life, then Protaras and Ayia Napa are ideal locations to consider. With white sandy beaches and family orientated entertainment, these two areas are perfect if you are considering residential property investment in Cyprus with the potential to rent out to tourists during peak seasons. The area has become very popular with the recent investment of a new marina which includes luxury villas and apartments.
Finally, we have Paphos. Known for its tourism, it is extremely popular among British tourists who return on a yearly basis for their holiday. The location and lifestyle of Paphos is very similar to that of Ayia Napa and Protaras.
Luxury Residential Property in Cyprus
When choosing to invest in luxury residential property you always need to consider what high-end buyers want. For example, luxury activities and dining experiences are usually popular choices so investing in villas, apartments or land near these types of amenities is vital. Luckily for investors who choose Cyprus, none of these facilities are far away. Waterfront locations are also extremely popular with luxury buyers.
With Luxury real estate there are several paths to opt for including buying high end vacation rentals, completing custom builds and buying luxury condos. All of which are available projects in Cyprus. When considering any of these you must consider the lifestyle you want to provide, private roof decks, swimming pools and large greenery around the properties are standard thoughts.
If you are going to decide upon Cyprus as the location for your residential property investment, then choosing the right city is most definitely key. As mentioned above, Cyprus has five major areas and each one offers something different. Depending on what you want in your portfolio will influence where you decide, however if you want to build up a portfolio of condos, quality rentals that beam with luxury as well as apartments with excellent amenities then Cyprus offers everything. Additionally, Cyprus provides low taxation as well as other positive aspects for investors, so it is understandable why the island is so attractive.