The Pros and Cons of Buying a Property in Cyprus

When it comes to Cyprus budget property, there’s a lot of interest from buyers. 

The first group of people are those who plan on living abroad. Imagine the possibilities of living in a foreign country. It is an opportunity that many people don’t take advantage of.

The second category of investors is made up of citizens and non-residents who want to make a profitable investment in Cyprus. It is a great way to make money. You invest in real estate and rent out your home or other properties. 

Find out more about the pros and cons of buying a property in Cyprus in the article below.

The cost of inexpensive real-estate

The housing market in Cyprus is not like in other countries. Inexpensive apartments and houses are usually not bought with plans to resell them at a higher price. 

That type of investment only happens with people who have money invest overseas in safe places with high returns on their investments. The budget housing market is a popular spot for foreigners looking to rent out their properties.

However, the concepts of “inexpensive and cheap” are always relative. To define them, you need to clarify the following points:

1. The location of the real estate.

2.  It’s important to know the difference between primary and secondary properties.

3. You need to know how much a square meter costs in the area.

4. How many bedrooms the property has.

5. You need to inform yourself about property utilities, furniture, and technology.

You are probably going to come across inexpensive property with a small number of square meters. 

The secondary market in real estate is a niche that has been growing exponentially over recent years. In rare cases, you can even get great deals on new construction property with low prices.

Inexpensive apartments and houses in Cyprus aren’t bought for the purpose of reaping profit. They are typically an investment by foreign buyers. The budget real estate is more often preferred as rental property.

The most expensive real estate in Cyprus

The range of prices for real estate in Cyprus is truly staggering. We have to use examples to make this more tangible.

Expensive real estate can be found in Limassol district village. An apartment located there can cost up to €60,000. At this price you will either get a studio or small one-bedroom apartment with an area that’s around 40 – 50 square meters.

The average one-bedroom apartment costs around €110,000. This price can buy you housing in the suburbs of Limassol, which is around 35-45 m2.

You can get a small house in Limassol for €150,000. For this price, the buyer can expect an area of approximately 70-100 m2.

Homes in developed suburbs are selling for an average price of €200,000. The spacious 120 – 170 m2 property has 2-3 bedrooms. 

The cost of one square meter in Limassol is around €2,500. The average price of a square meter of a home in Cyprus is about €1,700.

Affordable real estate options in Cyprus

The pros of affordable real estate in Cyprus

Buying inexpensive property is an opportunity to invest in your future. A small amount of money can go very far when it’s put into the right places. 

Property prices in Cyprus are not expected to fall for at least 10 years. Plus, there are some more benefits to it. Here are just some of them:

1. You can gain a residence permit. 

When buying real estate in Cyprus, non-EU citizens can apply for a residence permit. The permit can also be obtained for your family members. 

Owning property in Cyprus can help you get a residence permit without any problems. However, when you apply for Cypriot nationality, it’s necessary to live in Cyprus permanently.

2. You can rent out your property

There are different types of renting, short-term and long-term rentals. In big cities, it is easy to find tenants. Keep in mind that when you’re in a non-tourist area, long-term rental is always more profitable.

3. The cost of maintaining the property is low

The more luxurious your home is, the more you pay for it. In most cases, an inexpensive home will not require a renovation. Utility bills for a one-bedroom apartment  are usually around €300 – 500 per year. 

The cost to renovate an apartment for short-term rental can range from about €300 – 500. You can exclude this expense if you’re planning to move in or rent for longer periods.

The cons of inexpensive real estate in Cyprus

You can’t beat the price for an affordable home, but there are some drawbacks. You need to prepare for them in advance.

1. Property renovation

When you buy an apartment in need of renovation, the price will be cheaper. The best way to buy an apartment is by understanding if it’s profitable. You also need to calculate how much money you’ll need for renovation. 

2. Primary and secondary real estate disadvantages

Repairs are required in 95% of secondary housing cases. In most of the cases, the problems are connected to legal matters.

There can also be difficulties with your primary real estate. It happens, especially if you bought an apartment in a building that is still under construction. In winter, strong winds can blow around your apartment. You will not be able to survive without a heater.

3. Property maintenance after the investment

When you own an apartment, it’s important to keep up with the maintenance. As a buyer, you need to calculate the cost of maintaining your new home. You are on your own when it comes to solving any issues with utility bills or other issues. 

A foreign owner must understand specific local services. It is significant to look for different specialists and negotiate with them in their native language.

Conclusion: Investing in affordable housing is a smart way to make your money work for you

Inexpensive apartments and houses in Cyprus are bought mainly by foreign buyers. There is no shortage of options. There is a variety of apartments and houses for sale on the low end all the way up to luxurious mansions. Investing in affordable housing is a smart way to make your money work for you. In this article, we have presented some pros and cons. Nevertheless, it is up to you to weigh them all out and make the best decision for you.