The luxury real estate market in Cyprus is now very diverse. You will find expensive penthouses with private rooftop pools, exclusive beachfront villas spread over a huge area, spacious apartments in high-rise buildings, and large-scale residences located on 1-2 hectare plots. They are all unique in their own way. There is a huge demand for Cyprus villas with pools and other types of real estate among both the local and international buyers.
There is huge interest among international investors as the Cyprus real estate market has seen stable growth over many years. There are several other reasons as well:
- Tourism – Cyprus is a top tourist destination in the eastern Mediterranean. Its resort and entertainment industry is well developed. In 2020 alone, more than 2.5 million tourists visited the country, even though many other countries saw their visitor numbers plummeting. In Cyprus, on the other hand, the number of arrivals kept growing every month. With a lot of tourists looking for accommodation, property owners on the island can rent out their homes. And, of course, a Cyprus home will also be perfect for a family vacation.
- Climate – Cyprus is warm and sunny, without being too hot. The climate is ideal for older people with heart disease or arthritis. This is why many retirees and pensioners prefer to live here.
- Low crime rate – Compared to many other places in Europe, in Cyprus, there is practically no crime. The severity of crimes as well is very low. Large-scale murder or fraud is extremely rare in the country. This is because the locals are very peaceful people. Cypriots have very close family ties. Many families live together in the same house or the neighborhood. Most of the locals welcome foreigners.
- No terrorist threats – There is no political instability in Cyprus. The likelihood of political coups and terrorist attacks is negligible. So investments are safe on the island.
- Friendly tax structure – The tax rates in Cyprus are significantly lower compared to many European countries. There is a 75% reduction in real estate tax, which makes investments on the island even more profitable.
- You can become an EU citizen – When you buy a home in Cyprus, you can get Cypriot permanent residence or even full citizenship for you and your relatives. This will make you a resident of the European Union.
The Cypriot government offers a citizenship by investment program for those who buy real estate on the island. Since Cyprus is a member of the European Union, this will give you an EU passport. You have to invest a minimum of 300,000 euros to qualify.
Life in Cyprus
Cyprus is an ideal country to live in. The sun shines all year round. Life is calm and peaceful. There are no reasons for stress, crime is low.
Healthcare and medicine are advanced. Human life is highly valued. The education system is also very developed.
Cyprus has an impeccable business reputation: The company registration process is simple, tax rates are low, the island has tax treaties with other states, which makes Cyprus a world-class business center and a gateway to Europe.
The island offers many tax incentives to investors. It has one of the lowest corporate taxes in the European Union, which is why many CEOs love Cyprus. A high level of security, reliable investment climate, and other favorable factors allow Cyprus to rightfully remain as a top investment destination in Europe. This includes foreign investment in the real estate sector as well.
The biggest advantage of Cyprus over other countries is the program for citizenship by investment in real estate. Here, you have to invest a minimum amount of 2 million euros. This plan was approved by the Cypriot government in 2013. If you invest more than 300,000 euros’ worth of real estate, then you can qualify for the accelerated plan to gain permanent residence.
Language and Communication in Cyprus
Most Cypriots read, speak, and write English. This is very convenient for overseas people who want to invest and buy real estate in the country. Also, most of the locals are extremely friendly towards foreigners. That’s because the foreigners rarely take up local jobs. They create jobs by making investments. There are many good private English schools. Their graduates can enter the best universities in the world. Also, there are regular flights to many places in Europe and the world.
Types of Luxury Real Estate
Apartments in high-rise buildings
Usually preferred by wealthy citizens from Arab countries
Apartments in clubhouses
Popular with the Brits
Purchased by residents of the UK and those from other countries
Many foreigners prefer to buy a house on a hill, which offers them a panoramic view of the sea and the surrounding countryside.
Foreign buyers' requests for luxury real estate often with a swimming pool, orchard, garden, and one that is close to a good private school. When choosing a penthouse, the priority is always with a rooftop pool that offers panoramic sea views. In recent times, requests and sales of elite houses and penthouses have increased. They are often called “house on the roof” in Cyprus. Privacy, comfort, and location have become the specific characteristics of real estate in demand.
There is also a lot of demand for small properties… 1, 2, or 3-bedroom apartments located in closed-type clubhouses with a high-quality expensive finish, energy-efficient A+ or A++. Classification, with overflow pools, saunas, gyms, conference rooms.
Many buyers like to combine several apartments into one large space during the construction stage. This gives the homeowner an area of 200-300 sq. meters. This approach will turn a small 1-bedroom apartment into a huge bedroom with a bathroom of 15-20 square meters, a dressing area of 20-40 square meters, and a library. The interconnected apartment will also offer more space for the kitchen, dining area, and living room.
Where Are the Best Properties in Cyprus?
The best clubhouses are located in the most popular areas of the island that have a well-developed infrastructure. You will find most of the skyscrapers in Limassol. The city offers many types of housing, high-quality construction, and very good infrastructure.
However, the best properties are not always close to the sea. Many buyers interested in permanent residence, don’t always focus on how close the property is to the beach. Often, the popularity of the area and infrastructure are the key deciding factors. They look for proximity to large supermarkets and shopping centers, fruit shops, pharmacies, hospitals, schools, kindergartens, children's development centers, and other important facilities.
On the other hand, if the property is meant to be rented out to tourists, then naturally, proximity to the sea is crucial.
Facilities, and Maintenance Cost
You will get very good facilities and amenities if you buy a private house or an exclusive villa in a luxury gated community. But the cost per square meter will naturally be much higher than a similar detached house. The maintenance cost will include not just the cost of maintenance of the villa, but also the common areas and the facilities. Of course, this will be divided among all the community members.
Demand for Luxury Real Estate
The demand for luxury villa rentals and secluded estates in gated communities has gone up by 25% this year because of the pandemic. That’s because, everyone now wants to stay on private property, away from crowded places. This, in turn, has led to an increase in buyers in this segment.
Villas are always popular, but typically, they account for 30% of sales only. 70% of all sales are for apartments.
The Best Places in Cyprus for Luxury Real Estate
You will find exclusive villas, clubhouses, private residences, and prestigious commercial real estate in every city on the island.
Their key features are luxury and first-class infrastructure. Of course, you can build a premium-class villa in an ordinary residential area, which will help you save money towards the cost of the site. But the presence of old buildings in the neighborhood and the lack of an established service may not please the owners.
The most popular areas among foreigners are Potamos Germasogeia, Mutayaka, Agios Tychonas, Agios Athanasios, Mount Amathus. But the most elite area in Limassol is Columbia in Potamos Germasogeia. Both wealthy Cypriots and foreigners own real estate here.
You will find high-quality real estate, privacy, silence, picturesque parks, sports grounds, sea and mountain views at Columbia.
Columbia is 700 meters from the sea. So, the cost of land here is slightly lower than those facing the beach.
The most prestigious and popular areas for both Cypriots and foreigners are Coral Bay, Sea Caves, the villages of Tala and Tsada. Properties range between 150-250 square meters, living space on 3-5 acres, to a family residence of 600-700 square meters with 7 bedrooms, barbecue, spa, a tennis court, orchard, and a 185 sq. meter swimming pool.
Residents get stunning sea views, proximity to the Akamas Nature Reserve, and ancient historical sites.
The most prestigious areas are Mackenzie and Radisson, where you will mostly find luxury club-type apartment buildings. There are villas in premium communities & detached luxury homes at Livadia and the Pila tourist area.
- Limassol – The developers pay special attention to the quality of finish and exclusivity. One of the central streets of Kollonakiou is within walking distance of shopping centers, supermarkets, pharmacies, schools, children's development centers, cafes, restaurants, cosmetics and clothing stores, shops selling furniture and appliances.
- Paphos – Very popular with wealthy Cypriots and foreigners, many of whom are European citizens.
- Larnaca – The cost of land is still significantly lower than in Limassol and Paphos. So, a premium villa in Larnaca will be about the same as an elite apartment in Limassol.
The best villas on the island can cost several million. But you will also find wonderful properties for 600,000 euros.
- The cost of a prestigious 1-bedroom apartment in an elite clubhouse in Limassol in Columbia starts from 210,000 euros.
- In Potamos Germasoy, you can buy a penthouse with a private pool in a clubhouse, 350 meters from the sea, for 900,000 euros.
Buying Property in Cyprus
When buying such real estate, you can expect to get permanent residence within 3 months if you want. This will make you a citizen of Cyprus, which makes you eligible to become an EU national.
You can deny citizenship too if you want. But, of course, most investors, purchasing a residence in Cyprus for 3-5 million euros, will not refuse the government bonus because they will get a European passport.
However, you will still find buyers who do not want to obtain second citizenship or already have it. Many investors who already have a Cyprus passport continue to invest in residential and commercial properties. They register their companies and start business activities on the island.
Despite the pandemic and difficulties arising out of the quarantine, Cyprus is seeing continued growth in business and real estate. Many developers are offering discounts to buyers, which means, buying luxury real estate on the island is now even more attractive.
Many such transactions are being carried out now. This is great news for investors who want to benefit from the passport program to obtain citizenship.