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Yes, the analysis of Nicosia's property market is included in our pack
Considering buying real estate in Nicosia? You're not alone!
Many people are intrigued by Nicosia's Mediterranean beauty and dream of owning a charming villa or a modern apartment in this city.
Is it a wise investment, though? Are property prices increasing in Nicosia? How much does it cost? Should you consider buying in the city center or suburbs? Are there any hidden fees? Where are the best yields?
In this article, everything is sorted out for you.
The Investropa team knows this market like the back of their hand. Actually, we've gathered all our findings in a pack. Get it now.
In this article, get ready to receive valuable insights from us.
How is the real estate market in Nicosia?
Are property values increasing or decreasing? Let's check the latest data and statistics.
Types of properties
In Nicosia, you can find various types of properties for sale, including apartments, houses, villas, and commercial spaces like shops and offices.
Apartments are often available in different sizes, from cozy studios to spacious multi-bedroom units. Houses and villas offer options for those seeking more space and privacy, with choices ranging from modern designs to traditional styles.
Additionally, there are opportunities to invest in commercial properties, such as shops for retail ventures or offices for businesses.
Whether you're looking for a place to live or an investment opportunity, Nicosia offers a diverse range of properties to choose from.
Buying or renting?
(If you want to live there yourself and not rent it to others)
Whether you're already living in Nicosia or considering it for your future, you might be pondering the buy vs. rent decision in this dynamic capital city of Cyprus.
Without a doubt, you should buy if you want to acquire equity and benefit from potential appreciation of the property over time.
To make a good decision, look at the property price-to-rent ratio. It's a way to understand how many years of rental income you need to cover the property's current price.
According to Numbeo, the property price-to-rent ratio in Nicosia is around 17.83, which is around the world average.
Simply put, it would typically require 18 years of rental payments to buy a property in Nicosia.
Property prices in Nicosia
On average, according to the last data from Statistical Service of the Republic of Cyprus, buying a property in Nicosia would cost you around $2,660 per square meter.
Obviously, there is a significant spread. An apartment in the city center of Nicosia might have a different price per square meter than a house in Strovolos. We actually give you a more detailed breakdown in our pack for buying property in Nicosia and in Cyprus.
To put things in perspective, it means that, instead of buying an apartment in Paris or London, you can afford 5 properties in Nicosia.
Also, housing prices in Nicosia are 45% cheaper than in Paphos.
The most expensive neighbourhoods in Nicosia are probably Aglantzia, Strovolos, and Engomi, while the cheapest neighbourhoods are likely Kaimakli, Latsia, and Omorfita.
Trends
First, let's acknowledge that Cyprus currently offers peace and stability to investors. The last Fragile State Index that has been reported for this place is 56.9.
Don't overlook this while weighing the pros and cons of buying a property in Nicosia.
Besides that, if we look at the IMF's GDP forecasts, Cyprus's economy is expected to soar by 12.9% in the coming 5 years, resulting in an average GDP growth rate of 2.6%.
If you want to invest in real estate in Nicosia it's a good thing because, when people experience an increase in wealth, it typically translates to a surge in housing costs.
Also, in Cyprus, the average GDP per capita has changed by 8.8% over the last 5 years. It's a satisfactory number.
This data is a positive signal - housing prices in Nicosia might soar in 2024 and after that.
Looking for more updated data? We've done a big-picture study to find out if it's a good idea to purchase property in Cyprus right now.
Buying property in Nicosia
Buying real estate in Nicosia can be difficult due to the lack of reliable and updated information available. That's why we have created the pack to buy property in Nicosia and in Cyprus.
Buying process
In our pack, we've explained the entire buying process in detail. We've provided clear information about prices and yields based on the area, guidance on negotiating the price, and options for securing a mortgage.
Now, we're offering you a simpler version, step-by-step, to make it easier for you to grasp.
This is the step-by-step process to purchase a property in Nicosia:
- Research property market and budget in Nicosia, Cyprus.
- Find a licensed real estate agent or search online property listings.
- Visit properties to assess suitability and location.
- Engage a lawyer specialized in Cyprus property law for legal guidance.
- Make an offer through the agent with the help of your lawyer.
- Negotiate the price and terms, considering the local market trends.
- Sign a preliminary agreement (pre-contract) outlining terms and conditions.
- Pay a reservation fee (typically 1-5% of property price) to secure the property.
- Your lawyer will conduct due diligence, including title deeds and property permits.
- Sign the final contract (sales agreement) after all checks are cleared.
- Transfer the funds to complete the purchase; you'll need a Cyprus bank account.
- Register the property in your name at the District Land Registry Office with the help of your lawyer.
Also, if you're not from the country, you might want to check our article on how to buy property as a foreigner in Cyprus.
Make a profitable investment in Nicosia
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Where to find a property
If you're looking for properties in Nicosia, these websites are worth exploring:
- Kuutio Homes - An award-winning luxury property developer in Cyprus, known for delivering exceptional properties featuring stunning design and natural materials.
- Altia - Offering a wide variety of properties across the country, including residential, commercial, land, and investment opportunities.
- Ktimatogora - Providing an impressive portfolio of properties and collaborating closely with developers to transform your dream home into reality.
- Spitogatos - Presenting a diverse range of properties along with advanced search filters and an interactive map feature.
- Zoopla - Offering an extensive selection of homes, apartments, and new developments that showcase stunning sea views and modern amenities.
Also, know that we have included contacts of real estate agencies, property lawyers, moving companies, expats communities and more in our pack for buying property in Cyprus.
What you can get
As mentioned before, the average price per sqm in Nicosia is $2,660. A 1-bedroom property with 60 square meters would cost approximately $160,000, while a 2-bedroom with 85 square meters would be around $226,000.
However, property prices can vary because of their qualities and where they're located.
Property prices in the top areas of Nicosia are commonly at a premium. If you're considering Engomi, a villa might cost around $650,000, but a house in Strovolos could be priced at $470,000.
Certainly, certain areas are more affordable. You may find an apartment in Kaimakli for $90,000, or you might encounter an apartment in Pallouriotissa priced at only $70,000.
Find a more detailed breakdown in our full pack for buying property in Cyprus.
Common mistakes
Here are the main pitfalls specific to buying a property in Nicosia, Cyprus:
- Title deed delays: Complex land registration processes may lead to lengthy delays in obtaining title deeds.
- Mortgage accessibility: Foreign buyers might face challenges in securing favorable mortgage terms and interest rates.
- Communal fees: Overlooking high communal fees in gated communities or apartment complexes can strain finances.
- Capital gains tax: Understanding the tax implications on property sales is crucial for maximizing profits.
- Leasehold properties: Some properties are offered on leasehold rather than freehold, limiting long-term ownership rights.
- Cultural differences: Misinterpreting local customs and practices may lead to misunderstandings in property transactions.
- Encroachment issues: Boundary disputes with neighboring properties can lead to legal battles.
- Unfinished developments: Investing in incomplete projects may risk delays, quality issues, and even abandonment.
We don't want this to happen to you, so we have included a full checklist for your property investment in our pack of documents. Avoid these mistakes and save a lot of money.
Everything you need to know is included in our Cyprus Property Pack
Living in Nicosia
Life in Nicosia is a vibrant mix of modern and traditional culture, offering a mix of city amenities and rural tranquillity, making it an ideal place to buy property.
Cost of living
The cost of living in Nicosia is generally considered to be reasonable. Prices for basic necessities such as food and utilities are generally lower than in other European cities, but the cost of housing can be quite high.
Here are some examples to better understand the cost of living in Nicosia, Cyprus:
- Traditional Cypriot coffee (Kafes): $2 at a local café in the Old City.
- Rent for a one-bedroom apartment in Aglantzia neighborhood: $650/month.
- Meze dinner for two at a traditional tavern in Strovolos: $50.
- 1.5-liter bottle of KEO beer: $2.50 at a supermarket.
- Electricity bill for an 85m² apartment using EAC (Electricity Authority of Cyprus): $120/month.
- Monthly membership at the Acropolis Park gym: $35.
- Ticket to a film at K-Cineplex Nicosia: $7.
- Local Halloumi cheese (250g): $4 at the neighborhood market.
Neighbourhoods
Since we want to present information in a clear and reader-friendly way, we've created a summary table outlining the different neighborhoods in Nicosia. For yields, prices and rents, check our property pack.
| Neighborhood | Description | Strengths | Weaknesses |
|---|---|---|---|
Agios Dometios | Agios Dometios is a lively neighborhood with a mix of residential and commercial areas, known for its vibrant community and cultural events. | Good transport links, diverse shops and restaurants, active social life. | Some areas can get noisy, limited green spaces. |
Egkomi | Egkomi is a large suburban area with modern infrastructure and a range of amenities, popular among families and students due to its proximity to the university. | Close to the University of Cyprus, well-connected by roads, parks and recreational facilities. | Can be densely populated, traffic congestion during rush hours. |
Strovolos | Strovolos is one of the largest neighborhoods, offering a mix of residential and commercial areas, with a blend of modern and traditional elements. | Abundance of shops and restaurants, good schools, well-organized infrastructure. | Heavy traffic, some areas lack green spaces. |
Latsia | Latsia is a rapidly developing suburb with a mix of housing and commercial establishments, attracting young professionals and families. | Newer infrastructure, affordable housing options, proximity to the city center. | Less established community, ongoing construction in some areas. |
Acropolis | Acropolis is a historic neighborhood with narrow streets and traditional houses, known for its cultural heritage and local events. | Rich history and charm, cultural attractions, convenient access to city center. | Limited parking, some areas may lack modern amenities. |
Aglantzia | Aglantzia is a suburb with a mix of residential and student areas due to the presence of the University of Cyprus, offering a youthful and diverse atmosphere. | Proximity to the university, various leisure facilities, good public transport connections. | Can be busy during the academic year, limited parking in certain parts. |
Engomi | Engomi is a residential area with a mix of housing options, known for its green spaces and upscale properties. | Lush and green surroundings, prestigious properties, good schools. | Higher property prices, limited availability of shops and restaurants. |
Old City | The Old City is the historic center of Nicosia, surrounded by Venetian walls, and filled with historic landmarks, traditional architecture, and cultural events. | Cultural and historical significance, unique atmosphere, various traditional shops and eateries. | Restricted vehicle access, limited parking, some areas may lack modern amenities. |
Life in Nicosia
The economy of Nicosia is based on the service sector, which accounts for over 80% of its GDP. Nicosia is the financial and business hub of Cyprus and the headquarters of many international companies.
What expats usually like the most in Nicosia is the mix of modern amenities and traditional culture, like the variety of restaurants and shops, as well as the old city walls and churches.
Access to healthcare in Nicosia is good, with a Healthcare Index of 55. An effective healthcare infrastructure always boost the appeal of a place, which is good for real estate.
Finally, it is worth noting that the University of Cyprus ranks among the top 500 universities in the world.
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Renting out in Nicosia
If your intention is to buy a property not for personal use, but to rent it out and create income, then this section is for you.
Long-term
Tenant Profiles in Nicosia
According to the data reported by Wikipedia, the home ownership rate in Cyprus is 70%, which is average.
It means that, if you decide to buy and rent out in Nicosia, there will be a good number of people who can become your potential tenants.
If you decide to buy and rent out to long-term tenants, you should target students, professionals, and expats, as Nicosia is home to many universities, businesses, and international organizations. If you choose to rent out short-term, you should target travelers, tourists, and business people.
Here is a little summary table we've made for you.
| Property type and area | Profiles of potential tenants | What they are looking for | Expected monthly rent in $ |
|---|---|---|---|
Apartment in City Center | Professionals, expats | Central location, amenities | $500 - $1,000 |
Studio in Engomi | Students, young professionals | Near universities, modern | $400 - $800 |
Apartment in Strovolos | Families, locals | Residential area, schools | $600 - $1,200 |
Studio in Aglantzia | Students, academics | Near university, affordable | $300 - $600 |
Apartment in Pallouriotissa | Youth, professionals | Urban area, accessible | $400 - $800 |
House in Latsia | Families, expats | Suburban living, space | $800 - $1,500 |
Apartment in Lakatamia | Professionals, commuters | Easy access to city | $500 - $1,000 |
Rental yields
Nowadays, the rental yields you get in Nicosia are between 5% and 7%. There are some opportunities. So you know, a "good" rental yield is above 7%.
The best rental yields in Nicosia can be found in the city centre and the surrounding suburbs, due to their proximity to amenities such as shops, restaurants, and public transport. Additionally, areas with a high concentration of students and young professionals tend to offer higher rental yields as they are in high demand.
For further explanation and a more detailed breakdown, you can check the reports and analyses we have made.
Short-term
You could also decide to rent short-term to students, tourists, and business professionals visiting Nicosia. Additionally, professionals attending conferences or seminars in Nicosia may also be interested in renting short-term.
If you decide to go with that option, look for properties in the old city centre and the area around the University of Nicosia. These areas are close to the city centre, shops, restaurants, and other attractions, making them attractive to short-term tenants.
There are approximately 465 active Airbnb listings in Nicosia, reflecting a dynamic short-term rental market. The average daily rate stands around $75.
You have the opportunity to generate a nice additional income stream then. According to online testimonials and analytics platform like AirDNA, Guesty and Inside Airbnb, people who offer short-term rentals in Nicosia can make around $900 per month. Also, the average occupancy rate is estimated at 66%.
Is it worth buying real estate in Nicosia then?
Absolutely, buying property in Nicosia can be a fantastic investment choice, but let's cut to the chase.
If you're planning to make Nicosia your long-term home or you're an investor seeking rental income, it's a solid green light. The property price-to-rent ratio is reasonable, indicating that owning property can be more financially savvy than renting in the long run.
With rental yields typically ranging from 5% to 7%, and the city's appeal to students, professionals, and expats, you can expect a steady flow of tenants. Plus, Nicosia's positive economic outlook and its stable, growing economy bode well for property values in the coming years.
If you're seeking a unique mix of modern amenities and traditional culture, Nicosia's historical charm, vibrant community, and promising lifestyle make it an attractive choice. And if you're interested in short-term rentals, particularly in central or university-adjacent areas, there's potential for extra income.
However, if you're planning a short-term stay or your financial situation is uncertain, pumping your capital into property might not be your best bet. Real estate transactions come with costs, and selling property can be slow and cumbersome.
Moreover, if flexibility is your priority or you're not prepared for the responsibilities of property management, renting could be a more sensible path. And if you're risk-averse or prefer a more stable financial portfolio, other investment options might align better with your goals.
So, in a nutshell, if Nicosia aligns with your long-term living or investment dreams, go for it. But if you're looking for flexibility or uncertain about your financial future, renting or exploring alternative investments might be the way forward.
Make sure you understand the real estate market in Nicosia
Don't rush into buying the wrong property in Cyprus. Sit, relax and read our guide to avoid costly mistakes and make the best investment possible.
The content provided here is for informational purposes only and does not imply endorsement or advice. While we strive for accuracy, we do not guarantee the completeness or reliability of the information, including text, images, links, or other elements in this material. Following the content and analyses presented here does not assure specific outcomes. For guidance tailored to your individual circumstances, it is recommended to consult with a professional, such as a lawyer, accountant, or business advisor.