Why wouldn’t you buy a home in Cyprus? Sun, sea, sand, rising property prices and rental values are tempting overseas buyers in search of a permanent tan and a property with long-term investment potential.
It’s that time again: a Cyprus property market update, to keep you abreast of the various factors that could impact your purchase. Back in April the Cyprus Buying Guide was on hand to inform you that house prices were on the up during the fourth quarter of 2016, as were property sales to overseas buyers, thanks to enticing tax incentives and golden visa schemes. We recently reported that this trend for growing demand has maintained its upward trajectory, but what about prices? Have they plateaued, dipped or continued their growth over the last five months?
As an overseas property buyer you probably don’t just dream about spending your days relaxing in the Cypriot sun. Your mind will also wander to visions of bagging your ideal home for a bargain, and then sitting back – in the sun – and watching it grow in value, until the day comes when you sell up for a tidy profit. Buy a home in Cyprus and both dreams could come true, if you act quickly. Not only is the island drenched in 326 days of sun a year, property prices are still rising.
Residential property in Cyprus further accelerated in the first quarter of 2017.
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Property prices
The 13th publication of the Royal Institute of Chartered Surveyor’s (RICS) Cyprus Property Index reveals that the price of residential property in Cyprus further accelerated in the first quarter of 2017. Across the island house and apartment prices increased on a quarterly basis by 2.3% and 1.3% respectively. While compared to the first quarter of 2016, apartment prices have risen by 4.9% and house prices by 3.3% on an annual basis.
The port town of Larnaca on the south coast recorded the biggest quarterly price increase: 4.6% for apartments and 2.8% for houses. While significant annual increases were recorded in Limassol, Nicosia and Larnaca.
Property price rises have been particularly strong in Larnaca.
The value of holiday homes has also risen on a quarterly basis across the island: 1.7% for apartments and 1.3% for houses. The port town of Limassol, also on the south coast, reported the highest increase in apartment prices (2.9%), while Paralimni (2.1%) near Ayia Nappa recorded the highest rise in house values.
The report attributes the domestic property market’s strength to the resurgent economy, renewed confidence in the banking system and improved access to mortgages.
Rental value for holiday homes has increased on a quarterly and an annual basis.
Rental Values
The Cyprus Property Index also brought good news for anyone planning on purchasing an investment property on the island, or simply looking to let it out when they aren’t in residence. According to the report, rental value for holiday homes has increased on a quarterly (2.5% for apartments and 2.6% for houses) and an annual basis, 5.5% for apartments and 9.6% for houses.
If you explore the Cypriot property market, you will discover an island awash with properties with long-term investment potential both in terms of its future value, and the amount of money you can generate from entering the rental market.
The Cyprus Buying Guide takes you through each stage of the property buying process, with practical recommendations from our experts who have been through the process themselves. The guide will help you to:
