Residential Property Investment
Residential property investment in Cyprus is very popular. 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.
What is Residential Property?
Residential property investment in Cyprus is between one to four units. Examples of this are:
- Single-family homes
- Apartments
- Duplexes
- Triplexes
- Quadruplexes
- Townhouses
- Condominiums
- Villas
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 investment in Cyprus 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.
High Returns on Investment & Superior Life Quality
Cyprus attracts foreigners looking to invest and settle with lucrative and attractive residential opportunities to build a fulfilling life or build a sustainable rental income stream. Whether you’re planning to relocate to Cyprus or wish to become a European landlord to capitalize on the burgeoning tourism and residential industry, Cyprus offers an abundance of opportunities.
The higher return rate is indeed the most appealing advantage of investing in the residential markets of Nicosia, Limassol, Larnaca, Paphos, and Famagusta. Presently, Cyprus ranks among the highest and most stable European real estate industries, and it offers an economically and politically stable market environment to protect and facilitate foreign investors.
The government has rolled out several promising packages and regulations to attract, encourage and facilitate expats and foreign investors interested in residential property investment in Cyprus. Presently, residential properties in Cyprus offer an impressive rate of return ranging between 4.7% and 5.6%, depending on the location.
Residential properties in the urban centers of Limassol, Larnaca, and Nicosia offer a higher rate of returns, given the rapid pace of urban development, business ecosystem, and modern infrastructure. But the coastal hubs of Paphos and Famagusta also reward foresighted investors given their significance for the tourism industry.
Expats, retirees, millennials, and travelers flock to these coastal communities to soak up the Cyprian sun and enjoy its breathtaking coastal beauty. These coastal residential markets offer lucrative ROIs and rental income potential for landlords eager to serve expats and tourists. Despite being struck by the ongoing COVID-19 pandemic, Cyprus’s real estate industry has witnessed three years of continual growth and improvement.
The demand for housing on the island is ever-growing, and foreign investors can benefit from various government schemes and programs.
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.
Conclusion
If you are going to decide upon residential property investment in Cyprus, 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.
If you have any questions regarding starting your residential property investment in Cyprus, do not hesitate to contact us at info@sunshadowinvest.com, call us at +357 24 816246 or Book a 20-Minutes Online Meeting.
Related: Commercial Property Investment in Cyprus 2022: Growing Markets
