Cyprus has been a member of the EU (European Union) since 2004 and a member of the Euro Zone since 2008. Since joining the EU and synchronizing its laws and regulations, its economy has been developing with healthy growth rates.
Cyprus property market follows the trends of its economy. It has been growing steadily for the past 15 years attracting both foreign as well as local investors.
Foreign investors usually acquire higher value properties. Their preferences include mainly commercial buildings (usually with shops and offices) and residential properties. They are looking for high grade tenants offering strong rental yields. Yields, vary from 3,5% - 5% for new properties to 4,5-6% for good resales. 19% VAT on new properties tends to suppress yields. Foreign buyers usually employ property management companies to handle their properties.
Cypriot investors mainly acquire smaller residential properties near universities or city centers. One-bedroom flats are in the highest demand followed by studios and 2-bedroom. They tend to manage them themselves until they realize how much work this entails. Yields are similar i.e., 3,5% - 5% for new properties to 4,5-6% for good resales. Exceptionally, we can get even higher yields with properties exceeding 20 years of age. With properties built before the year 2000 the tenancy law may kick in which dampens the prospects of the investment. That is why we would recommend against buying such properties for investment. If the amount to be invested justifies buying 2 or more units we suggest that these are concentrated on one building a. to have a stronger voice in the Administrative Committee of the building and b. for more efficiency in managing the flats.
Please find below properties that we consider good investment propositions:
Studios
1 Bedroom flats
2 Bedroom flats
Shop
https://www.foxrealty.com.cy/properties/shop-for-sale/in/nicosia-cyprus
Offices
https://www.foxrealty.com.cy/properties/office-for-sale/in/nicosia-cyprus/page/
Commercial Buildings
Residential buildings
