Cyprus is a Mediterranean island combining brilliant sea and poetic landscapes, a diverse economy, and a dynamic real estate market. Realty is a business that brings in millions in euros each year, over a billion in 2023. It is also competitive and evolving. Here, we explore and give you tips for buying and selling!
- Research the local market and the factors that affect it.
- The central question is whether the property is right for you and your family.
- You will need a lawyer and a real estate agent.
- The Cyprus real estate market forecast looks good, while global prices are stabilising!
Factors influencing the real estate market
The real estate market is sensitive, influenced by factors including:
- Supply and demand.
- Currency value and interest rates.
- Economic trends.
- Investor activity. Local and international investors influence the market by influencing supply and demand.
- Regulatory factors such as building, zoning and planning laws.
The Cyprus real estate market outlook
Global Investment Group Goldman Sachs reports that the global housing market is fast stabilising.“House prices are defying expectations and are rising in major economies”. On 26 May 2023, they reported that sales and prices worldwide are recovering “at a surprisingly fast pace”.
Cyprus has a solid real estate sector. The Financial Mirror (August 1, 2023) reports increased construction activity for Q1. RICS (the Royal Institute of Chartered Surveyors), reporting on Q2 2023, note an increase in all assets, including rental and holiday assets.
Do your research, contact professionals
The first thing to do if you are buying or selling a property is research. Real estate is a valuable asset that appreciates over time. Nevertheless, “speed with caution”. Research and understand the market to make an informed decision. Learn about influences on the market and the availability of housing inventory. Buying or selling a house is a critical step. You will regret a decision taken in haste or ignorance!
Furthermore, decide your investment strategy. Are you buying long-term or short-term? Will you rent the property? Calculate the costs. Apart from the price, consider:
- Legal fees and stamp duty
- Renovations or repairs
- Municipality taxes
- Price forecasts
Also, contact an experienced real estate agent. They know the local market and the way buying and selling works. Don’t navigate house inventories, prices and ways to advertise your property without the help of a professional.
Further, you need a lawyer registered with the Cyprus Bar Association. The lawyer does the process and filing; they perform due diligence and protect your interests.
The value of personalised advice
A professional will also give personalised advice. With buying and selling, your specific circumstances matter. The best property is the property that works best for you. Whether it is a good investment comes later.
TV personality and realty expert Phil Spencer, writing for the Evening Standard (23 June 2023), says that you should always go for a property that will be flexible and adapt to your lifestyle. Choose a house that will suit you for longer.
Location in Cyprus
Cyprus locations are divided into city, country and beachfront. If you are a city person or into business, the city is best; if you do not mind commuting, think about the countryside. Cyprus is small; you will not be far from amenities or a city.
Limassol is the most popular location because of its business culture and closeness to the sea. It is also more expensive than other cities, with Nicosia next. Nicosia is the capital and the centre of government. Larnaca is a good choice for business, while Paphos is laidback prime for the expat community!
Seafront properties are available, ranging from apartments to bungalows and villas. They tend to be expensive, though. If you do not mind the quiet, mountain properties are an option. Mountain villages have amenities and are hotspots for local culture.
Buying real estate in Cyprus
There are two points to settle here. The first is the budget: how much you can afford monthly for a mortgage or how much money you have in savings. The way to know how much you can afford is to calculate monthly expenses carefully, considering that your salary or income may decrease later. The second is the property and the location. Go for a property that will respond to your budget and needs, considering whether you will have a family or whether it will grow larger. Realtors give guidance on suitable properties.
Once you select some properties, drive around the areas. Check their proximity to schools and amenities, distance from the city centre, and how noisy it is.
During the house inspection, pay attention to details:
- Is it easy to make changes?
- Minor issues may be repaired quickly. The decisive factor is the significant problems. Consider taking a civil engineer or architect with you.
- If you buy new, ask about the developer’s reputation and look at their other projects. Word of mouth is vital in Cyprus, so asking around is a good idea.
- The seller does not have to tell you everything about the property. However, if you ask, they must answer truthfully.
- Whether acting for you or not, the real estate agent should give an honest opinion on the property’s condition.
On the legal side, your lawyer will explain the contract of sale. They will also perform due diligence, checking the property’s title and, if the seller is a company, the company’s health. If you take a mortgage, the bank will release the sums to you, and you will pay the seller. Don’t sign anything until your lawyer says so.
Selling real estate in Cyprus
The realtor will advise on the price range and receive offers when selling real estate. You will select a buyer and sign a contract. Upon payment, you will transfer the title deeds to the buyer. Ensure the property is repaired if it is a resale. If there are issues, it is better to discuss them beforehand. Don’t sign anything until your lawyer says so.
You should research and work with professionals to navigate the real estate market. Cyprus combines natural beauty, a business culture, and robust housing activity. The outlook for buying and selling looks promising and good!
This post is for information only. It does not constitute or replace personal legal, financial, investment or real estate advice. Every effort is made to ensure that the information is accurate. However, we do not warrant the accuracy and completeness of the information. Any liability is disclaimed.