Updated: June 10, 2024
Cyprus’s sunny climate, membership in the European Union (EU) and thriving business environment make it an attractive place to live. If you are thinking of buying, selling or investing, here is what you need to know about the Cyprus real estate market.
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Real estate plays a central economic role and becoming familiar with the Cyprus market dynamics is vital before investing. Here is some helpful data:
According to the Central Bank of Cyprus (CBC), the Cyprus residential property price index for Q4 2023 rose 2.3% QoQ and 8.3% YoY.
Prices (in euros) for apartments in Cyprus can range from 110,000 to several million; for houses, from 120,000 to several million.
As of June 2024, the median apartment price in Cyprus is € 550,000, with the median price per square meter around € 4,359. The median house/villa price is € 690,000, with the median price per square meter around € 3,289 (data source - Cyprus property investment guide by DevelopersCyprus).
The median price in Cyprus real estate, the middle value in a sorted list, is less affected by extremely high and low values than the average price, which is the sum of all values divided by their count. The source uses the median as a more reliable indicator of the typical market value, as it better reflects the central tendency in a diverse Cyprus property market.
Several important factors influence the value of a property, including:
The most expensive city is Limassol, followed by Nicosia. Generally, properties in the centre and suburbs are more expensive than in the districts immediately surrounding the city. Villages and country are less costly than city areas, though there can be expensive villages. Seafront properties are the most costly of all.
There is a luxury property market in Cyprus, with unique properties of every type.
Whether you want to buy, sell or invest, finding a real estate agent to navigate the process is essential. A knowledgeable local realtor will help you determine how much your house is worth or what types of property suit your budget. They will advise on the local market, list the home, and help with the buying, selling, or renting processes.
The Cyprus permanent residence program for investors allows you to live in a highly desirable part of the European Union, with all the benefits of a stable government and a pro-business environment. The permit does not expire and may cover spouse and dependent children. Cyprus has created this program to attract business talent and boost the island’s cosmopolitan community.
To get Cyprus permanent residence by investment, the applicant must:
After getting the permanent residence, the applicant must verify annually that they continue to maintain the property. Every three years, the applicant and adult members of their family must verify their clean criminal record and health insurance.
It is easy to buy a property, and you only need a local bank account. However, it is highly recommended that you use the services of a professional property lawyer and real estate agent. The process and paperwork may be complex.
When calculating the total cost of the transaction, you should factor in the following:
If you are a seller, you should factor in:
In Cyprus, utility and lifestyle costs will vary depending on the type of property, maintenance plans, needs, and family size.
Natural beauty, closeness to the sea, entrepreneurship and a stable political environment make Cyprus a prime choice for property buyers, sellers or investors. Though the cost of living is rising, it is still lower than in other parts of the EU, and real property is available at a wide price range. In short, Cyprus is an excellent destination for living, retiring, or relocating.
How many times should you visit Cyprus when buying a property?
To open a bank account, it is recommended that you visit Cyprus at least once. During this visit, you should ideally consult with a real estate agent and lawyer to explore the properties and locations of interest.
What criteria should I use when selecting properties for purchase in Cyprus?
Criteria for selecting properties in Cyprus are twofold: general and Cyprus-specific. General criteria include location, budget, proximity to amenities, cost of living in the area, property’s physical appeal, age, condition, and availability of parking and storage spaces. Cyprus-specific criteria include title due diligence, researching and visiting various locations, deciding on the property type, inspecting the property, and working with professional realtors and lawyers.
What are the advantages of participating in the Cyprus investment programme?
The Cyprus permanent residence by investment offers benefits such as living in an EU Member State with political and social stability, a favourable tax system, a pro-business environment, a cosmopolitan community, affordable living, low crime, a relaxing lifestyle, excellent education system with English-speaking institutions, and access to high-standard healthcare facilities.
How much will it cost to take part in the Cyprus investment programme?
Participation in the Cyprus investment programme requires an investment of € 300,000 plus VAT in real estate (residential or commercial) and a secure annual income from abroad of € 50,000, increased by € 15,000 for a spouse and € 10,000 per child. The investment amount is multiplied per child for financially independent adult children included in the application.
What taxes do I need to pay when buying property in Cyprus?
When buying property in Cyprus, you’ll need to pay VAT of 19% or a reduced VAT of 5% for your first and main dwelling (up to 130 sq m). A transfer tax is required if VAT is not applicable, with a 50% exemption available. The amount depends on the property value and your share in it. Stamp duty is also payable based on the property’s value. While there is no immovable property tax, various municipality taxes are applicable.
What does buying a house in Cyprus give you?
Buying a house in Cyprus offers the opportunity to live in a pro-business environment within the EU. It represents a good investment due to the high demand for real estate and the region’s popularity.
Why is it dangerous to buy a property in Northern Cyprus?
Buying property in Northern Cyprus is risky because it may constitute unlawful land possession, potentially leading to criminal charges and a European Arrest Warrant. Governments like the UK, France, and the US advise against it due to potential ownership disputes with evicted Greek Cypriots and involvement in unlawful occupation of significant archaeological or historical sites.
How much are the utility payments in Cyprus?
Utility costs in Cyprus depend on lifestyle and family size. Indicatively, expect about €400 bimonthly for electricity and water. Monthly food costs for a family of four are around €1,200. The average price for unleaded petrol is €1.55 per litre (see daily rates). Affordable internet and phone packages are available.
Can I buy an apartment or house in Cyprus and get citizenship?
Buying a house or apartment in Cyprus does not directly lead to citizenship. However, it can contribute to obtaining a residence permit. After eight years of residence within a ten-year period, including a continuous, legal 12-month stay before applying, one may become eligible for citizenship.
George K. Konstantinou
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