Villa for Sale in Cyprus

Cyprus is a modern nation with a robust economy and an especially low crime rate. The capital is Nicosia, an urban sprawl surrounded by the glorious Kyrenia mountains in the middle of the country.

Cyprus successfully diversified its largely agrarian economy into one based on services – including a large tourism sector – and light manufacturing. More recently it has also developed into an important financial hub, especially for investors from Russia and Eastern Europe. Nicosia is the financial and political centre of the country. There has been considerable residential property development in Cyprus.

Cyprus is the third largest Mediterranean island and a popular tourist destination, attracting over 2.4 million tourists per year.

FACTS

Capital: Nicosia

• Population: 1 million (combined)
• Area: 9,251 sq km (3,572 sq miles) (combined)
• Major languages: Greek, Turkish
• Major religions: Christianity, Islam
• Life expectancy: 78 years (men), 83 years (women) (UN)
• Currency: Euro, Turkish lira in the north

RESIDENTIAL PROPERTY FACTS

Price (sq.m): €1,536

Rental Yield: 5.12%

Rent/month: €786

Income Tax: n.a.

Roundtrip Cost: 10.23%

Cap Gains Tax: 20.00%

Landlord and Tenant Law: Pro-Tenant

Price History

After eight long years of house price falls, Cyprus’ housing market is now stabilizing, amidst an improving economy. During the year to Q1 2017, the nationwide residential property price index increased slightly by 0.14% (-1.74% inflation-adjusted), after y-o-y declines of 0.94% in Q4 2016, 1.21% in Q3, 1.71% in Q2 and 1.6% in Q1, according to the Central Bank of Cyprus.

We expect property prices to broadly stabilise over the coming quarters, and the demand for property to increase gradually from low levels,” said Moody’s Investor Service.

Foreigners can buy one home in Cyprus, and are entitled to hold land freehold, but there is a maximum limit on land ownership of 3 donums (4,014 sq m).

By district:

• Nicosia, Cyprus’ capital, residential property prices were unchanged during the year to Q1 2017 (-1.9% when adjusted for inflation)
• In Limassol, prices increased 0.9% y-o-y to Q1 2017 (-1% inflation-adjusted)
• In Larnaca, prices declined by 0.9% y-o-y to Q1 2017 (-2.7% inflation-adjusted)
• In Paphos, prices dropped 1.3% y-o-y to Q1 2017 (-3.2% inflation-adjusted)
• In Farmagusta-Paralimni, residential property prices dropped 3.6% y-o-y to Q1 2017 (-5.4% inflation-adjusted)

Demand is now rising sharply. During the first seven months of 2017, property sales in Cyprus rose by 19.6% to 4,349 units from a year earlier. Sales to the domestic market rose 12.6% and sales to the overseas market were up by 41.3%, based on figures from the Department of Lands & Surveys.

By major urban centres:

• Nicosia registered 708 sales contracts in the first seven months of 2017, up by 22.9% a year earlier.
• In Limassol, property sales rose by 33% y-o-y to 1,624 unitsover the same period.
• In Paphos, sales contracts increased 27.4% y-o-y to 1,083 units.
• In Larnaca, property sales fell by 10% y-o-y to 702 units.
• In Famagusta, sales contracts rose by 20% y-o-y to 252 units.

Where to buy property in Cyprus

Larnaca is one of the major tourist areas of Cyprus. It is home to the island’ biggest airport and has a major commercial seaport. Larnaca is a very modern city. It has a vibrant shopping district centred on Zenon Kitieos Street, with many little shops and a large fresh produce market. For most part, Larnaca has a tranquil atmosphere, being much smaller than Nicosia and Limassol. Most of the Villas for sale in Cyprus as situated in Larnaca. There are also many big cyprus real estate developers based out of this part of the country.

Source: Global Property Guide

Rental returns in Cyprus are moderate, but property is inexpensive