Investing in luxury real estate in Cyprus: is it worth buying now?
In case you're planning to buy a foreign property, Cyprus is one of the most interesting options to consider. A property on the island can not only offer a beautiful home or beachfront apartment, but also a multitude of profitable financial opportunities. Let's figure out why it's smart to invest in a luxury real estate in Cyprus and what are the peculiarities of this market.
Dynamics of the real estate market
Cyprus' economy reflects strong growth and development in the face of worldwide slowdowns. Post-financial crisis and pandemic rebound has indicated the resilience of Cyprus' economy as well as the potential of foreign investment inflows to the island state. Cyprus' property market remains one of the most popular foreign buyers' assets, due to which house prices are gradually increasing.
Care should be taken to develop the tourism industry. Tourists have grown by leaps and bounds in the recent years, and this has created demand for rental properties and helped appreciate the value of property. Construction of new tourist areas such as hotels, resorts and recreation further invite investors and buyers to the island.
Luxury Housing Rental Income
Cyprus luxury real estate is becoming ever more attractive to investors, especially in the rental sector. The demand for high-end housing is consistently strong due to the influx of foreign professionals, digital nomads, businesspeople and wealthy tourists. The best cities for rental yield are Limassol and Paphos: in Limassol, for example, yields per year can be 5-7%, and in some cases even higher, especially for short-term rentals.
Location holds a special status: sea-view villas, apartments in secured residential complexes with pools and SPA areas are rented at a premium and guarantee a steady flow of tenants. The residence permit or citizenship of Cyprus also makes it easier to manage the property and achieve profit.
It is necessary to take into account the seasonality: in the summer, the demand for rent increases several times, especially in resort areas. Luxury real estate requires professional management and regular maintenance, which affects costs, but with the right approach, the investment's profitability remains high. In the long term, because of the growth of housing prices and steady rental potential, investments in luxury real estate in Cyprus will definitely be profitable and long-term.
Forecasts for the last years
In the course of the subsequent few years, Cyprus luxury real estate will continue to be in demand by investors due to a series of inherent advantages:
Price appreciation: Sustained demand for high-end apartments in Limassol and Paphos will yield reasonable price appreciation in the next two years.
Good rental yields: Luxury houses give good returns due to increased demand from tenants, i.e., entrepreneurs and tourists.
Tax advantages: Cyprus has good tax regulations, i.e., foreign investor schemes and the benefit of being able to acquire a residence permit.
Perfect location: Cyprus remains attractive to individuals who look for housing near the Mediterranean Sea with good ecology.
Financial stability: Despite the challenges in the world, Cyprus is financially stable, and for this reason, the real estate market is reliable for investment.
All these factors create positive conditions for long-term investment in luxury housing in Cyprus.