The Cyprus capital of Nicosia is on the up for property investment and starting to attract overseas property investors.
While Limassol and Paphos may be the two cities in Cyprus that attract the majority of real estate investment, accounting for 70 per cent of foreign buyers, Nicosia is gaining momentum.
The Cyprus capital is starting to gain strength in the real estate sector, both in sales and construction of residential units. These indicators show the current mobility in the real estate market and the trend for building houses and apartments.
Rent prices have risen sharply in both Nicosia and Limassol, offering strong rental yields for overseas property investors, reaching up to €600 for a one-bedroom apartment and €800 for a two-bedroom apartment.
While Limassol currently ranks at the top of the list in real estate sales, Nicosia is closing in. The number of contracts of sale deposited at the Limassol District Land Office during the last nine months has risen to 2,488 against 2,008 in the corresponding period of 2017, an increase of 24 per cent.
However, Nicosia recorded an increase of 34 per cent, with the number of sales contracts reaching 1,169 compared to last year’s 871, ending in third place (after Paphos).
With regard to foreign buyers, Nicosia lags behind both Paphos and Limassol. It remains last, with only 168 sales to foreigners, of which 88 are from non-EU buyers and 80 from EU buyers. Limassol ranks second to Paphos, accounting for 29.7 per cent of sales to foreigners, with 949 sales contracts.
However, when it comes to the future development of the real estate industry, the Cyprus capital has picked up speed, while Limassol has stabilised.
Nicosia is now ranked first in the number of building permits. Between January and July, permits were issued for 1,185 units in the capital, up 74 per cent, and 1,153 in Limassol, compared to 1,053 in the same period last year.
Overseas property investors may wish to take more notice of Nicosia, as it could be the new property investment hotspot in Cyprus.