Property Investment In Nicosia
Nicosia has developed a strong property market within both the commercial and the residential sector and presents some good investment opportunities for Cyprus property purchasers.
With a year round rental market, rather than a seasonal one, Nicosia’s property market differs from that of many other tourist cities on the island.
The commercial property market in Nicosia is very competitive and attracts high profit margins and consequently property prices have been rising steadily and consistently.
Prices have increased as the scarcity of land has gradually become greater.
Nicosia employs a large foreign workforce due to the many international companies now based here. The majority of the foreign labour consists of immigrants looking for improved working conditions and a better quality of life. In addition, Nicosia also attracts a private workforce from other towns of the island since most Cypriot private companies and the majority of its government institutions are based in Nicosia. The workforce in Nicosia is forever growing and in need of increasing amounts of quality housing near their work place. The University of Cyprus along with the largest colleges in Cyprus is also based in Nicosia.
Both foreign and local investment has played a significant role in shaping the demand in the Nicosia property market and capital is invested aggressively each year.
The downturn of the Cyprus Stock Exchange pushed most capital investment towards the property market in preference to the poorly performing stock market. This is, as we know, a phenomenon in many countries. Nicosia’s property market enjoys the full confidence of Cypriot investors due to its very positive performance over the last 15 years.
In the capital city of Nicosia, with a population of 250,000, there are more than a hundred listed development companies, plus many small developers supplying new housing for the growing population. Construction has been growing at such a rate that finding labour has sometimes become a challenge for smaller development companies. Despite the increase in demand for housing, almost all new developments are sold off-plan and most of them before they reach the frame stage. Hidden Properties® offers great property choices from the foremost developers in the country,
Current Conditions and Predictions
In Cyprus, an ever increasing demand and good expectations for the future suggest the property market has not yet reached the peak for the following reasons:
- Prices in the industry have been increasing rapidly and consistently.
- Investors are investing and reinvesting their money in real estate.
- Developers are selling their properties before they begin the construction process. At Hidden Properties®, we offer a connection to the best Property Developers in Cyprus.
- Profits are sufficient for investors and developers. This causes increasing demand as well as increasing supply of newly developed properties.A new wave of foreign investors has made a strong move in acquiring property in Nicosia during the last year. This is understandable if we consider the English property market is comparatively unsatisfactory and many investors are looking to diversify their portfolio abroad. Many of them seem to prefer the year-long rental contracts of Nicosia to the seasonal rental contracts of other towns.Investors expect increases in rental return in the near future. Property prices have increased disproportionately to rental increases. Since increase in demand increases prices, the local population’s income will not be sufficient to purchase property. This will increase demand for rentals and thus stimulate a rise in rents.Market Trends That Shape Nicosia’s Property Market
The property market in Cyprus has changed considerably in the last few years due to political changes and influences in the socio economic structure of the island.
- Accession to the EU relaxed regulations and invited investments to flow in from abroad. Foreign workers flocked to the island while EU accession boosted the confidence of foreign investors.
- The phenomenon of younger people having their own place to live in is becoming increasingly popular in Cyprus, as elsewhere. This has a huge impact on the demand for residential apartments and a higher standard of living for young professionals.
- Cypriots are generally more confident buying new properties from developers than getting involved in the construction process themselves.
- Nicosia is the education centre of Cyprus and aspires to expand further into the Mediterranean and Middle-East. Colleges have applied to become universities expecting that joining the EU, along with the high standard of Cypriot education and quality of life will attract more foreign students to Cyprus. The University of Cyprus has a strategic target to grow consistently every year and reach approximately 10,000 students by 2010. To date, the university has enrolled approximately 3,000 students.
- Many international companies have shown significant interest in registering in Cyprus following the strategic plan of the Cypriot government for tax incentives (corporate tax of 10%). EU accession helps in this attempt, providing an additional sense of security and stability for the foreign companies. According to the Cypriot company registration authority, a significant percentage rise has been observed in the number of new companies applying for registration.Contact Hidden Properties® and let us help you find your home away from home.