Larnaca a prime hotspot for real estate investors
Cyprus based real estate platform INDEX.cy unveiled a report on Friday, singling out Larnaca as the prime destination for investors and homebuyers eyeing lucrative opportunities in the island’s real estate sector.
This designation stems from a recent analysis conducted by the company on the local property market.
INDEX noted that, “this revelation comes at a time when the sector is witnessing significant inflows from both institutional and retail investors, driven by the quest for higher returns on investments amidst persistently low deposit interest rates”.
A dive into the data, drawn from a pool of over 4,200 real estate listings on INDEX, revealed a notable contrast in pricing between new and pre-owned properties in Larnaca, the company said.
According to the platform’s analysis, the median price per square meter for brand-new real estate stands at EUR 3,619, while preowned properties come in at EUR 2,289 per square meter.
These figures account for the 19% VAT for brand-new assets and the 4% Transfer of Title Fees (TTF) for pre-owned properties.
“This substantial 36% discount on preowned properties not only positions Larnaca as an attractive investment avenue, but also as an ideal locale for those scouting for their next home,” noted the INDEX analysis.
Furthermore, comparable yet slightly smaller differences in pricing between new and pre-owned properties were observed in other regions, including Limassol (25% difference), Nicosia (27%), Paphos (27%), and Famagusta (21%).
Robust sample
These findings, as per the report, are based on an analysis of 24,773 new properties and 4,539 pre-owned ones, providing a robust sample size to outline the current market landscape comprehensively.
INDEX emphasised that their insights underscore Larnaca’s ascension as a significant player in real estate transactions, highlighting its unmatched potential for investment and residential opportunities, thus making it the preferred destination for both profit-driven investors and individuals seeking their dream homes.
Anton Karbanovich, the founder of INDEX, noted that, “the real estate landscape is evolving, with a growing ‘flipping sector’ emerging in recent years.”
“Mirroring trends in the US and central Europe, an increasing number of retail and small investors have started venturing into the realm of buying pre-owned properties, undertaking renovations, and then flipping these assets for a profit,” he added.
“INDEX’s data analysis underscores Larnaca’s standout position in this market, especially within the residential real estate segment,” Karbanovich concluded.
The report also emphasized that, “as the real estate market continues to evolve, driven by both global trends and local dynamics, Larnaca stands out as the new destination for real estate endeavours”.