Is buying a property in Engomi a good investment?

Last updated on December 7, 2023

Yes, the analysis of Nicosia's property market is included in our pack

If you've enjoyed the suburban charm and green spaces in Engomi, Nicosia, you might have looked into purchasing a residential property in this peaceful neighborhood to make it your comfortable and tranquil home in the capital of Cyprus.

Is it a good idea though? How is the real estate market there? Are prices going up or going down? Do people make profits on their real estate investments? What about the rental demand?

We'll answer all these questions for you! When building and updating our property pack for Cyprus, our team has been researching and surveying this area. Actually, lots of customers are interested in investing there. So we thought it would be a good idea to add some information about it in our pack.

Why do property buyers like investing in Engomi?

Engomi, located in the heart of Nicosia, has emerged as a highly sought-after area for property buyers, offering a blend of attributes that set it apart from other real estate markets in Cyprus.

What makes Engomi particularly appealing is its unique combination of residential tranquility and urban convenience. Unlike other bustling areas of Nicosia, Engomi maintains a serene atmosphere, making it ideal for those who seek a peaceful living environment yet still want to be close to the city center.

One of the key factors that have contributed to Engomi's popularity is its strategic location. It's nestled near the University of Nicosia and other educational institutions, which makes it a prime spot for students and academic professionals.

This proximity to educational hubs has steadily increased its popularity over the years, particularly since the early 2000s when the University of Nicosia started expanding.

The area's ongoing development and modernization, coupled with its educational and cultural offerings, suggest that Engomi will likely maintain its appeal in the foreseeable future.

However, it's not just students and academics who are drawn to Engomi. The area is also attractive to families and professionals, thanks to its well-developed infrastructure, including shopping centers, healthcare facilities, and recreational areas.

Engomi's high-quality lifestyle offerings position it as a comfortable and convenient place to live for a diverse range of people.

In comparison to other areas in Nicosia, Engomi stands out for its well-balanced urban development. While some parts of Nicosia might offer either a more bustling city life or a quieter, more suburban atmosphere, Engomi strikes a harmonious balance between the two. It provides a quieter residential setting without sacrificing access to urban amenities.

However, like any area, Engomi has its drawbacks. One potential issue is the cost of living and property prices, which can be relatively high compared to other parts of Nicosia. This might be a deterrent for some buyers, particularly those on a tighter budget.

Additionally, the area's popularity and development have led to increased traffic and parking issues, particularly during the academic year when the student population swells.

Overall, Engomi's appeal lies in its unique blend of peaceful residential life and urban convenience, attracting a diverse demographic of residents.

While the area continues to grow and evolve, its blend of educational, cultural, and lifestyle offerings ensures it remains a desirable location for property buyers in Nicosia.

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Why is Engomi a nice place to live?

Engomi offers a unique and appealing living experience, combining the charm of a serene neighborhood with the convenience of urban life.

This balance makes it an attractive place to live, especially for those who appreciate a quieter lifestyle yet still want access to city amenities.

The lifestyle and culture in Engomi are marked by a blend of traditional Cypriot charm and modern living. The area is known for its relaxed atmosphere, making it a pleasant place for both families and individuals. There's a strong sense of community, and the pace of life tends to be more laid-back compared to the bustling city center of Nicosia.

Engomi has a growing expat community, primarily due to its proximity to the University of Nicosia and other educational institutions. This multicultural environment adds to the area's diversity, bringing together people from various backgrounds and cultures.

The presence of expats contributes to the international feel of the neighborhood, offering a comfortable setting for those relocating from abroad.

In terms of cost, living in Engomi can be considered moderately expensive, especially when compared to other areas in Cyprus.

The housing market here tends to cater to a range of budgets, but the demand and location can drive up property prices and rental costs. However, the quality of life and amenities often justify the expense for many residents.

Safety is a key feature of Engomi, with the area being known for its low crime rate and secure environment. This aspect is particularly appealing to families and those who prioritize safety in choosing where to live.

Engomi boasts a variety of amenities and facilities that cater to the needs of its residents. Educational institutions like the University of Nicosia and the European University Cyprus are prominent landmarks here. For healthcare, the Nicosia General Hospital and several private clinics offer medical services.

Shopping needs can be met at the Mall of Engomi and various local shops, providing both convenience and a range of options.

The infrastructure in Engomi is well-developed, with efficient road networks, reliable utilities, and good internet connectivity. These aspects ensure a comfortable and convenient living experience, with the basic needs and more being easily accessible.

Access to Engomi from other parts of Nicosia and major transport hubs is straightforward, thanks to its well-connected roads.

It's relatively easy to travel to and from different parts of the city, making Engomi a convenient location for those who commute or enjoy exploring the city.

Public transportation in Engomi includes bus services that connect it to various parts of Nicosia. These services are generally reliable and provide a cost-effective way of getting around. However, for more flexibility, many residents prefer using personal vehicles or taxis.

How much does it cost to buy real estate in Engomi?

If you need a detailed and updated analysis of the prices, rents and yields, you can get our full guide about real estate investment in Cyprus.

Resale properties, ranging from older apartments to well-maintained houses, offer character and often come at a slightly lower price point.

Speaking of prices, the cost of buying property in Engomi varies widely based on the type and location of the property.

As a rough estimate, prices per square meter can range from around €2,000 to €3,000 or more, depending on the property's age, size, and amenities. It's important to note that these figures can fluctuate based on market conditions.

Over recent years, property values in Engomi have generally seen an upward trend. This increase is attributed to the area's growing popularity, continuous development, and its appeal as a balanced residential area.

The presence of universities and other educational institutions has steadily driven demand, positively impacting property values.

Looking ahead, there are several factors that could influence the real estate market in Engomi. Any upcoming city planning changes or new developments can significantly impact property values.

For instance, new commercial or educational developments could make the area more attractive, potentially driving up property prices.

Predicting the future of the Engomi real estate market involves considering current trends and planned developments. If the area continues to develop at its current pace and maintains its appeal, it's plausible to anticipate a continued increase in property values. This is especially likely if new infrastructure projects or amenities are introduced.

Factors indicating a potential increase in property value include ongoing urban development, the expansion of educational institutions, and improvements in transportation and infrastructure.

Additionally, Engomi's reputation as a safe and pleasant area to live continues to attract a range of buyers, supporting the potential for growth in property values.

Where is the best area to buy a property in Engomi?

When considering the best area to buy a property in Engomi it's essential to understand the diversity within the suburb itself.

Engomi is characterized by its varied neighborhoods, each offering a distinct atmosphere, variety of properties, and pricing.

Certain parts of Engomi are more residential and tranquil, ideal for families or those seeking a quieter lifestyle. These areas typically feature detached houses and larger apartments, with gardens and more space, which naturally come at a higher price point.

On the other hand, areas closer to the University of Nicosia and other educational institutions have a more vibrant, youthful atmosphere.

Here, you'll find more apartments, including studio and one-bedroom options, catering to students and academic professionals. These properties are often more affordable, but also in high demand due to their proximity to the university.

An up-and-coming area within Engomi to consider is the neighborhood around the Mall of Engomi. With new developments and amenities, this area is becoming increasingly attractive for both living and investment.

Properties here offer the convenience of being close to shopping, dining, and entertainment options, while still being within a comfortable distance from the busy city center.

If you're looking to buy a property in Engomi, areas near the university and the mall are worth exploring. These locations offer a blend of lifestyle conveniences, accessibility, and investment potential, especially if you're interested in renting out your property.

The demand for housing in these areas, driven by students and young professionals, can ensure a steady rental income.

Conversely, areas on the outskirts of Engomi, which are farther from central amenities and transport links, might not be as advisable for property investment.

While these locations might offer more affordable housing options, they could also pose challenges in terms of accessibility and convenience, especially for those who rely on public transportation or seek the vibrancy of a more urban setting.

Here is a summary table to help you visualize better. If you need more detailed data and information, please check our property pack for Cyprus.

Area	Atmosphere	Property Types	Price Range	Suitability
Residential Areas	Tranquil, Family-friendly	Detached Houses, Larger Apartments	Higher	Families, Those seeking quieter lifestyle
Near University of Nicosia	Vibrant, Youthful	Studio and One-bedroom Apartments	More Affordable	Students, Academic Professionals
Around Mall of Engomi	Developing, Convenient	Various	Moderate to High	Investors, Young Professionals
Outskirts of Engomi	More Isolated	Various, More Affordable Options	Lower	Those seeking affordability over convenience

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Is there a strong rental demand in Engomi?

Engomi is indeed experiencing strong rental demand, primarily due to its strategic location and the presence of educational institutions.

The rental market in Engomi is more inclined towards long-term rentals, largely driven by the student and academic community associated with the University of Nicosia and other nearby educational institutions.

The target demographic for rentals in Engomi predominantly includes university students, academic professionals, and young working professionals. Students, both local and international, are continuously seeking accommodation close to their universities.

Academic professionals, such as lecturers and administrative staff, also form a significant portion of the rental market, looking for convenient living near their workplace.

These potential tenants usually look for specific types of properties. Students often prefer studio or one-bedroom apartments that are affordable and easy to maintain. Properties that are furnished and include modern amenities are particularly appealing to this demographic.

Academic and working professionals, on the other hand, might opt for slightly larger apartments or even small houses, prioritizing comfort and a quiet environment suitable for working from home.

Specific areas within Engomi that attract the most rental demand include those in close proximity to the University of Nicosia and the European University Cyprus. The neighborhoods around these educational hubs are hotspots for rental properties due to their convenient location.

Certain amenities can significantly enhance the attractiveness of a rental property in Engomi. High-speed internet, a crucial need for students and professionals, can greatly reduce vacancy rates.

Additionally, properties with modern furnishing, good security, and proximity to public transportation, shops, and restaurants are more likely to be rented out quickly.

In terms of investment returns, properties in Engomi can offer promising yields, especially given the steady demand. The potential returns on investment can vary, but generally, landlords can expect a decent yield from rental income.

For instance, smaller apartments, which are in high demand among students, can offer good returns relative to their investment cost.

Looking ahead, the type of properties that are gaining more demand and could potentially offer better yields are those that cater specifically to the needs of the student and young professional demographic. This includes well-located, modern apartments with amenities like high-speed internet, easy maintenance, and access to local facilities.

As the student population in Engomi continues to grow and the demand for convenient, modern living increases, these types of properties are likely to remain in high demand, offering lucrative opportunities for investors in the rental market.

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Is it easy to buy a property as foreigner in Engomi?

Before we answer the question, please know that we have an article dedicated to the experience of buying real estate as a foreigner in Cyprus.

Buying a property in Engomi, Nicosia, as a foreigner is relatively straightforward, but there are specific regulations and factors to consider.

Understanding these can help navigate the process smoothly and mitigate potential risks.

Firstly, Cyprus does have regulations for foreign property buyers, but they are generally not prohibitive. Non-EU citizens need to obtain permission from the Council of Ministers to purchase property, which is usually granted without much complication. EU citizens have fewer restrictions, making the process easier for them.

The purchasing process in Engomi typically starts with identifying the desired property, followed by negotiating the price. Once agreed upon, a sale contract is drawn up and signed.

Foreign buyers need to pay a deposit (usually around 10-30% of the total price), and then apply for approval from the Council of Ministers if required. Once approved and the remaining amount is paid, the title deeds can be transferred to the new owner.

One primary risk associated with property investment in Engomi, especially for foreigners, is navigating the legal and administrative aspects of the purchase. This includes understanding property laws, taxes, and potential zoning issues.

A classic pitfall is not conducting thorough due diligence on the property, which can lead to unexpected legal problems or additional costs.

A unique aspect to be aware of in Cyprus is the issue of title deeds. In some cases, properties are sold without immediate issuance of title deeds, which can be a risk for the buyer. Ensuring that the property has clear title deeds, or that they will be available upon completion of the sale, is crucial.

Working with a local real estate agent and a lawyer is highly important in this context. A local agent can provide insights into the best areas to invest in and help navigate the local market trends.

A lawyer, on the other hand, is essential for ensuring all legal aspects of the purchase are handled correctly, especially given the complexities of property law in Cyprus.

For property investors in Engomi, common exit strategies include selling the property after a period of appreciation or renting it out to generate rental income. The rental market, particularly for properties near universities, is robust, offering a steady income stream.

Selling the property can also be lucrative, especially if it has appreciated in value, but it's important to be aware of the market conditions and timing for the sale.