Buying a property in Famagusta
Famagusta is one of the six districts in Cyprus and is located on the east coast.
Most of the district, including its city, is in Northern Cyprus, which has been under Turkish control since 1974 and where we do not advise international clients to buy.
However, there is still a sizeable part of the district – almost 2,000 square kilometres, so roughly the size of an English county like Surrey – on the Republic side of Famagusta. This includes a number of property hotspots.
For those buying a property in Famagusta, here we’ll outline the reasons people choose to buy there, share insight on the property market and highlight the best areas for international buyers.
Why buy property in Famagusta?
Beautiful Blue Flag beaches
The district of Famagusta is home to some of the best beaches in all of Cyprus. In fact, 14 of them have been awarded the Blue Flag accolade based on the beach’s quality for accessibility, cleanliness and sustainability. They include Ayia Thekla beach, Fig Tree Bay, Nissi beach, Pernera beach and Ayia Triada beach.
Quality of life
Residents of Famagusta enjoy a high quality of life thanks to the low cost of living (compared to its European neighbours) and access to excellent healthcare, education and recreational facilities.
Balmy climate
Famagusta is one of the hottest spots in Europe and enjoys sunshine for an average of 320 days a year. This attracts both permanent residents and holiday home buyers seeking a slice of paradise on the eastern Cypriot coast.
Affordable homes
The average apartment in Famagusta is typically more affordable than in any other Cypriot district, highlighting its investment appeal to both buyers and investors[i].
Established expat community
The Famagusta district has a welcoming expat community with residents from various countries, including the UK. Due to the high number of expatriates, there are numerous social clubs and activities that cater to foreign residents, helping them to integrate and enjoy a fulfilling social life.
Understanding the Famagusta property market
Property in Famagusta continues to rise in price, according to the Bank of Cyprus. Last year, the average apartment cost €140,000 and the average home cost €276,000. Apartments remain the more popular option for buyers in the district of Famagusta, likely for their affordability and handy shared amenities.
In terms of sales volumes, according to the Department of Lands and Surveys (DLS), real estate sales fell ever-so-slightly in 2023.
New developments are less popular in Famagusta as a whole, however, there are some areas where resort-style living is more popular, such as Ayia Napa and Ayia Thekla.
Where to buy property in Famagusta?
Ayia Napa
Ayia Napa is a popular tourist destination renowned for its vibrant nightlife. This has mellowed slightly since the early 2000s and Ayia Napa has become a favourite destination for family holidays.
Ayia Napa would be an ideal location for those seeking a lively atmosphere with proximity to the gorgeous Mediterranean Sea. Homes are in high demand in Ayia Napa, and the market has a plethora of options from luxury villas to modern apartments and more traditional houses. Prices really vary in Ayia Napa. You can find a small two-bedroom apartment for as little as €75,000 while a three-bedroom detached villa is likely to start at €300,000.
Sotira
Sotira is a quiet village on the east coast of Cyprus, renowned for its relaxed lifestyle and traditional charm. It’s a great place for those seeking a peaceful community, without being in the sticks, as Sotira has easy access to nearby towns.
There are a number of new-build developments, with two-bedroom apartments starting at €150,000. This is significantly cheaper than the current resale market. However, for detached homes, prices start from €135,000. For €300,000 you could get a three-bedroom detached villa, either a few streets back from the beach or a short drive from Ayia Napa marina.
Paralimni
Paralimni gracefully combines traditional Cypriot culture and modern conveniences. It’s known for its friendly, welcoming community, good schools and proximity to beautiful beaches. For that reason, Paralimni is a hit with families and expats, who enjoy socialising and keeping fit.
The Paralimni property market is equally as diverse as Ayia Napa, offering everything from affordable apartments to luxurious villas with private pools.
Liopetri
Liopetri is a small village in the southern Famagusta district, home to just under 5,000 residents. It’s known for its red soil which produces pomegranates, figs and potatoes. The village can be traced back to Medieval times and is home to a number of traditional homes made of mud bricks and straw.
The village has picturesque views of the surrounding landscapes and the residents enjoy a tranquil living environment. The property market is quite small but has a range of affordable options, with starting prices of €90,000 for a two-bedroom apartment. It’s the ideal place for someone seeking a quiet, rural lifestyle with the convenience of nearby amenities.
Is buying property in Famagusta a good investment?
The region offers competitive prices compared to other Cypriot and Mediterranean locations and the affordability of properties makes it an attractive option for investors seeking value.
For the past decade, property in Cyprus has risen steadily in price. However, according to the Bank of Cyprus, it is still below the levels before the global financial crisis.[1] Therefore, it looks like it still has plenty of room to grow.
Tourism is one of the main economic contributors in Famagusta, especially in summer when those from further inland head to the coast to enjoy the beautiful beaches. This high demand can translate into lucrative rental income opportunities. However, non-resident owners must beware the strict rules/bans on short-term lets, and the implications for buying costs. For example, VAT on let property is 19%, compared to 5% for primary residences.
Apartments remain the most popular property type in Famagusta, rising in price by 9% in 2023 alone[ii].
10 steps to buying a property in Famagusta
Buying a property in Famagusta is not difficult if you have a plan and some help from professionals. Follow our step-by-step guide to make your dream a reality.
- Define what you’re looking for: Determine what you want in terms of property type, size, location, accessibility and budget. Separate your must-have features from your nice-to-haves. Allow for buying costs of up to 10% on top of the sales price.
- Research and planning: Download guides, go on trips, and sign up for events and exhibitions to gather all the information you may need about buying a property in Famagusta. Try to narrow down the location you want to buy a property in.
- Speak to a currency expert: Firstly, you need to know your budget. Secondly, moving exchange rates are a risk in international property purchases, so discuss managing that risk with a forward contract that fixes your exchange rate.
- Make essential connections: Connect with a local estate agent. The easiest way to do that is to enquire a property in Famagusta. Also, contact an independent property lawyer and maybe a tax specialist too.
- Viewing trip: Speak to your estate agent about your requirements, then book a viewing trip to visit potential properties. The agent will advise on the best time for that.
- Make an offer: When you find a property you like, you can make an offer via your estate agent. Your lawyer will begin the legal and due diligence processes.
- Sign the reservation and sales contract: You may have to pay a reservation fee to take the property off the market. Once approved, and due diligence completed, you’ll sign the contract and pay a deposit (usually 20-30%).
- Plan for utility connections: The wait begins, this can often take up to nine weeks. It’s wise to look into getting your utilities connected during this time.
- Sign the final contract: When ready, you’ll be asked to sign the final contract and pay the outstanding amount on the property. Then, you’ll get the keys to your very own home in Famagusta.
- Register the property: Finally, once you’ve signed the final contract, your lawyer will register the property with the Land Registry to ensure the property is in your name.