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08 July, 2022

Real estate in Cyprus rises in price for the first time in 2 years. Buy or wait?

The value of Cypriot residential property increased by 1.5% year on year and by 0.7% in the first quarter of 2022. The statistics were published by the Central Bank of Cyprus.

We talk about the dynamics of prices for residential real estate in Cyprus.

Permanent residence in Cyprus for the purchase of real estate
Photo: Adobe Stock

The Central Bank of Cyprus publishes the Residential Property Price Index quarterly. The Cypriot market experienced difficulties between 2014 and 2020. Over the past two years, demand for real estate has grown, including among foreign buyers. But property prices continued to fall.

The increase in average prices for Cypriot property was noted for the first time in the last couple of years.

Residential property sales also rose, with Cyprus registering 23.8% more sales contracts in the first quarter of 2022. Foreigners bought 117.9% more real estate in the same reporting period.

Apartments increased the most in price: by 6.8% year on year and by 1.7% quarterly. Houses have risen in price by 1.5% and by 0.7% over the same periods.

How the cost of residential real estate in Cyprus has changed

CityDynamics of prices for apartmentsDynamics of house prices
For 2021For the 1st quarter of 2022For 2021For the 1st quarter of 2022
Nicosia+3,4%-1,3%-0,2%+0,1%
Limassol+6,9%  +1.4%+2,1 +0,6% 
Larnaca+2,4%  +0,8% +1,3%  -0,2%
Pathos+10,6%    +2,7%+4%  +3,3% 
Famagusta +8,3%  +3,9%+2,4% +2,1 

The Central Bank of Cyprus notes that the growth in property prices will soon slow down. Most of all, objects in cities where important infrastructure for the country is being built will increase in value. For example, Cyprus has begun renovating the marina in Larnaca and is building the largest European casino in Limassol. Thanks to new properties, real estate prices in these cities will increase by at least 10% in the next two years.

How to become a resident of Cyprus by buying property

Cyprus offers investors to obtain permanent residence for the purchase of real estate in the amount of 300,000 €. You can buy one or two residential primary properties. It is not possible to invest in resale property.

The investor pays VAT separately: the standard rate is 15%. It can be reduced to 5% if the investor buys an object for himself and this is his only home on the island.

The investor can also invest in commercial real estate, primary or secondary. In this case, he must buy or rent housing in Cyprus: under the terms of the permanent residence program, you must have a permanent address on the island.

Examples of investment properties in Cyprus

Real estate in Cyprus: examples of objects under the permanent residence program

Apartments in a modern complex in a prestigious area of Limassol. The cost is from 392,000 €. Profitability – up to 4% per annum

Real estate for investors who participate in the permanent residence program in Cyprus

Apartments in a residential complex near the sea. The cost is from 505,000 €. Profitability – up to 4% per annum

Real estate, for the purchase of which you can get permanent residence in Cyprus

Boutique hotel with 40 rooms in the historic center of Larnaca. The cost is 13,000,000 €. Profitability – up to 4% per annum

Real estate, for the purchase of which you can get permanent residence in Cyprus

Commercial building in the business center of Limassol. The cost is 4,500,000 €. Profitability – up to 3.6%

Immigrant Invest helps to obtain permanent residence in Cyprus for investment. If you want to become a resident of Cyprus and buy property on the island, please contact investment program experts for advice.

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Real estate in Cyprus rises in price for the first time in 2 years. Buy or wait?