Cyprus real property

Buying property in Cyprus is a safe investment if you entrust the process to woodgrip.

Concerning Our Sales Service in Cyprus

Cyprus real estate is a profitable and sound investment, offering a guaranteed rental income as well as ideal living circumstances for ahappy and safe family. woodgrip serves as a one-stop for all of your real estate needs in Cyprus, from the initial decision to buy or rent to maximizing your investment and providing post-sale care. We give extensive guidance, legal aid, and expert transaction support while taking into account your unique preferences. Our premium service is bolstered by the fact that we offer a free selection of properties from our own database in all areas of Cyprus.

Property Developer in Cyprus

Quality Home Developers Cyprus was founded by the late Mr. Soheil in 2000 as a building construction company.

During its early years, the company worked in both the public and private sectors, building properties, villas, schools, road improvements, and carrying out projects for the power authority, the Ministry of Education, and the Ministry of the Interior.

Following the Turkish invasion of 1974, and as a class “A” construction enterprise, it was active in the island’s rebuilding. It was tasked with developing projects for banks, municipalities, organisations, and ministries, including the Ministry of Defence, something only a few enterprises in Cyprus had done before.

The enormous number of commercial and residential properties in Pafos and Limassol are further evidence of high quality and dependability standards. Apartments, luxury penthouses, townhouses, and individual villas in prime locations are also available. Quality Home Developers Cyprus has something for everyone and every lifestyle.

Quality Home Developers Cyprus is now one of Pafos’ largest property developers. The Group currently employs roughly 480 people across seven different firms and has a large number of properties available.

Aside from Real Estate and Property Development, the Group is also involved in the tourism industry, owning a number of hotels in Paphos and Ayia Napa. The Travel Agency of the Group provides appropriate tourist and investment tours and services. The Property Rental & Management Company binds the services that an Investor anticipates receiving.

The Group self-finances all properties developed, and it takes pleasure in its freedom in terms of selling pricing and payment methods due to the absence of the customary limits or demands as a direct result of external finance.

Property in Cyprus

iListers.com Is the best place to look for Cypriot property and part of iListers.com/cyprus, Cyprus’s number one property website – is the finest place to search for Cypriot property. Cyprus is an island paradise in the Mediterranean Sea, with stunning scenery, gorgeous beaches, and ancient ruins. You may locate your dream holiday property in Cyprus on iListers.com, which has a large number of villas, houses, and flats for sale. iListers.com is the finest location to find the most recent property in Cyprus.

Cyprus has a diverse cultural heritage, having been inhabited by people ranging from the Middle East to Western Europe throughout the last 9000 years. As a result, Cyprus is a completely unique and distinct country, as well as a lovely location to live. Cyprus, the third biggest island in the Mediterranean Sea, is home to a broad spectrum of landscapes and cities. Property in Cyprus may be found in some lovely places, ranging from the pine-clad Troodos Mountains in the island’s interior to the bustling streets of Nicosia. Many visitors come to Cyprus to enjoy the traditional pristine beaches and blue waters. Thousands of tourists flock to resort towns like Ayia Napa to party late into the night. More sedate villages and towns dot the shore, and there is some excellent property in Cyprus for sale. Property in Larnaca, property in Paphos, and property in Limassol all offer lovely historic surroundings in some of Cyprus’s best towns. Property among shady vineyards, historic monasteries, sandy beaches, lemon trees, and castle ruins may be found all across the island. Cyprus is one of the most vibrant places in the Mediterranean!

Paphos Property

Property in Paphos, a prominent seaside resort in southwest Cyprus, provides buyers breathtaking views on some of the island’s most beautiful beaches. Although New Paphos is the current inhabited city, there were two Cypriot places called Paphos in ancient times: Old Paphos and New Paphos. Property in Paphos is varied and diverse due to the town’s rich history, offering something to suit every taste. Paphos is a popular tourist destination with magnificent beaches, white washed homes, and an appealing harbour lined with vibrant fishing boats and restaurants. Paphos, in addition to being a fantastic vacation and second home location, has beautiful history, culture, and architecture. And, because Cyprus has such beautiful weather, your Paphos property may pay for itself if you chose to rent it out to others when you are not using it!

Limassol real property

Limassol, Cyprus’s second largest city, is located on the island’s southern coast and serves as the capital of the Limassol District. Property in Limassol is abundant on the coast, ranging from luxury Limassol homes to more basic Limassol apartments. Limassol is the centre of the wine industry, therefore a property in Limassol would be ideal for spending weekends and holidays roaming around the city streets after evenings spent wine tasting.

Larnaca real property

Larnaca, Cyprus’s oldest living city, is located on the island’s west coast and is home to Cyprus’ primary international airport, Larnaca International Airport, making visiting your property in Larnaca convenient! It is the island’s second largest port and an important tourist destination because it is one of the major seaside resorts in Cyprus, with various beaches extending for around 25 kilometres around the city. When you buy a property in Larnaca, you benefit from being close to magnificent beaches as well as the services and amenities of the major tourist resorts. Larnaca’s main beaches, Phinikoudes and McKenzie, have both been given Blue Flags for environmental cleanliness. There are luxury beach hotels, apartments in Larnaca, and villas in Larnaca around the Larnaca Bay, with the city itself offering a broad selection of restaurants, taverns, cafes, and pubs.

Famagusta Real property

Famagusta is known for having the nicest beaches in Cyprus. The district’s golden sandy beaches softly hug the island’s eastern corner. The popular holiday destinations of Agia Napa and Paralimni have been described as “heaven” for everyone who enjoys the sea and watersports. The picturesque environment includes Agia Napa’s modest fishing harbour, the ancient monastery at the heart of the village, and the windmills and churches of Paralimni and Protaras. This region is known as ‘Kokkinochoria,’ which means’red soil villages’ and is the main potato producing area on the island. This region’s villages are also well-known for their folk poets, who are widely regarded as the best on the island.

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Cyprus is a wonderful place that conjures up images of a peaceful and happy life. The island’s moderate climate, unusual natural wealth, friendliness of the residents, and plethora of historical sites leave no visitor uninterested. Property owners in Cyprus will recognize the benefits of the solar republic, and our pricing will astound them. Living in Cyprus offers a diverse range of alternatives, so locating the type of property that you require will not be difficult.

Purchases of real estate in Cyprus should be done with caution. The right investment item, understanding all the complexities of the legislation, and finding ways to save money – these activities come with a slew of complications. That is why many customers prefer to do business with a reputable company with a strong housing market position.

When purchasing property in Cyprus, you will receive competent guidance on all areas connected to the acquisition of apartments and houses from woodgrip.

Attention

Woodgrip is a professional firm that provides buyers and investors with comprehensive real estate experience in Cyprus.

Orderly

The first rule we follow is to be and stay on schedule.

Transparency

Our pricing is transparent and competitive, so you know exactly how much our services are worth.

Larnaca's Agents

Agents with a wealth of expertise in the Larnaca real property market.

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House prices are falling, but apartment values are rising

Despite the fact that house prices are falling, apartment values are rising

Due to a minor fall in house prices and a rise in apartment values, the residential Cyprus property price indexes slowed in the second quarter of 2021.

According to the Cyprus Central Bank’s Residential Property Price Index (RPPI) report for Q2, a quarterly gain of 0.3 percent was reported, up from 0.5 percent in Q1 2021.

On an annual basis, it increased by 0.2 percent from 0.9 percent the previous quarter.

“The price of houses presents a different picture than the price of apartments, with the former showing a decrease while the latter shows an increase,” the research states.

According to the Central Bank, housing prices fell by 0.3 percent and 1% on a quarterly and annual basis, respectively.

Apartment prices, on the other hand, grew by 1.3 percent quarterly and 3% annually.

This pattern was observed in all areas except Limassol, which had an increase in home prices, while Paphos saw an annual decrease in apartment prices.

The increase in apartment prices, according to the Central Bank, indicates local purchasers’ and investors’ ongoing appetite for flats over homes in most regions.

According to the report, Cypriots prefer to invest in smaller homes and apartments. It is ascribed to the fact that savings are directed toward the purchase of real property, either as an investment or for personal use.

Furthermore, the rise in the cost of construction materials has helped to keep prices stable.

The Central Bank stated in the sales documents that investor demand for property has stabilized as a result of investment promotion and the government’s scheme for foreigners to get permanent residence permits in Cyprus.

Property sales are increasing across the board

According to numbers released by the Department of Lands and Surveys, property sales increased across the board in September compared to the same month last year.

Domestic sales

 which accounted for 63 percent of total transactions in September, increased by 9% compared to September 2021 and 41% compared to September 2019.

With the exception of Famagusta, where sales were down 7% from the previous year, the remaining four districts saw increases.

Limassol saw a 21% increase in sales, followed by Larnaca (9%), Nicosia (3%), and Paphos (3%). (1 percent )

In all districts, sales have increased year over year. Paphos (59%) is the most popular destination, followed by Famagusta (54%), Limassol (47%), and Larnaca (47%). (34 percent ).

The government’s interest rate subsidy scheme, which will last through the end of 2021, has boosted sales to the domestic market. In February, the maximum loan amount for home acquisitions was increased from €300,000 to €400,000, with a 1.5 percent interest rate subsidy for a four-year term.

However, keep in mind that the data include an undocumented number of ‘non-sale’ agreements between banks and failing borrowers, such as loan restructurings, recoveries, and debt-to-asset swaps, in an effort by the banks to lower their non-performing loan portfolios.

Sales in other countries

Property sales to the international market, which represented for 37% of all transactions in September, increased by 30% compared to September 2021 and 19% compared to September before COVID.

Sales climbed in the remaining four districts, with the exception of Paphos, where they fell by 2%.

Sales in Larnaca increased by 86%, followed by Limassol (38%), Famagusta (31%), and Nicosia (31%). (29 percent ).

On an annual basis, sales in Nicosia increased by 63 percent, followed by Larnaca (29 percent), and Limassol (almost unchanged), despite sales in Paphos falling by 7% and Famagusta remaining almost unchanged (15 percent ).

Sales to European Union nationals

Sales to the EU part of the outside market, which represented for 17% of total sales in September, increased by 30% from September 2021 and by 45 percent from September before COVID.

All of the districts saw an increase in sales. Famagusta led the way with a 267 percent increase in sales, followed by Larnaca (86 percent), Nicosia (36 percent), Limassol (8 percent), and Paphos (8 percent) (2 percent ).

The number of homes sold to EU citizens has increased in all areas on an annual basis. Larnaca (81%), Nicosia (73%), and Limassol (73%). (43 percent ). Paphos (31%) and Famagusta (31%). (30 percent ).

Non-EU citizens are targeted for sales

Sales to the non-EU part of the international market, which represented for 20% of total sales in September, increased by 30% over September 2021 and 3% over pre-COVID September 2019.

Sales plummeted 30% and 8% in Famagusta and Paphos, respectively, but surged 86 percent in Larnaca, 66 percent in Limassol, and 14 percent in Nicosia.

Sales in Paphos and Larnaca are down 37 percent and 22 percent, respectively, on a year-over-year basis. However, sales in Nicosia have increased by 49%, while sales in Larnaca and Limassol have increased by 10% and 2%, respectively.

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Property prices are skyrocketing due to rising costs

soaring as a result of growing costs

In the first half of the year, building material prices in Cyprus skyrocketed, pushing construction costs to new highs and pushing property prices even higher.

This rise has also made it more difficult for the real estate and construction sectors to recover following the cancellation of the “golden passport” scheme and the aftermath of the coronavirus pandemic.

Steel, cement, sand, stone aggregates, and wood-based components have all seen considerable price increases in the last seven months, as have other essential items including steel, cement, sand, and stone aggregates.

In comparison to the same period last year, this has increased overall building costs by 7.38 percent.

Real estate analysts believe that the growing trend will cause property values to skyrocket, sending shockwaves through the market and halting building and sales of new development projects for the time being.

Availability chain interruptions caused by the Covid-crisis and pre-existing geopolitical hostility reduced the supply of building materials at the same time that output remained stable during the epidemic.

Geopolitical factors, as well as the newly created alliance between the United States, the United Kingdom, and Australia, have cornered China, which is feeling the strain of imposed constraints.

that Australia has been an ally of China’s economic rebirth since 2000, sending 85 percent of its ores to the country. He added that this relationship helped Australia to emerge unhurt from the global financial crisis of 2008, while China became a major participant in the global manufacturing of final products (steel and iron).

The newly created partnership, however, has exacerbated tensions between the two countries. As a result of the crisis, he added, there are trade restrictions, lower output, and higher final product pricing.

Inflationary shipping costs, spurred in part by COVID-19 and geopolitical issues between the west and China, have also pushed up building material prices.

Furthermore, the epidemic has resulted in a significant increase in freight shipping costs, particularly from Asia to the West. The average cost of a container has risen from €1,500 before the outbreak to €10,000.

Increased demand for containers, combined with the need for more port staff and the industry’s general inability to meet massive demand, has resulted in a significant increase in transportation prices for both raw materials and finished goods.

This increase will obviously be passed on to the end user, which in this case is the building industry. According to developer reports, the final price of a property could rise by 22%.

Construction projects are behind schedule

What this means for Cyprus is that the economy will suffer yet another setback, with a number of projects in the works being halted, and purchasing real estate property will become even more difficult for some.

Cypriots looking to buy a home will be temporarily put off from doing so, deferring their goal for at least a few months in the expectation that prices will fall again.

that some young couples intending to purchase a home with the help of a bank loan will have a more difficult time obtaining financing now that property prices would definitely rise.

that while no agreements have yet fallen through in the real estate sector, they predict a market freeze as purchasers are unsure what to make of the situation.

According to the Financial Mirror, the cost of building has increased by 29% since 2020, because to rises in transportation and COVID, which have driven up the cost of construction supplies.

As he noted, ongoing projects will be harmed as a result of the decision, with numerous projects being put on pause.

Constructors of continuing high-end property housing projects will confront a big difficulty because the majority of apartments have already been sold. The higher cost will be borne by the contractors, he said.

In the case of newer projects, the expense will almost certainly be passed on to the eventual consumer, the property buyer.

The instability in the market, on the other hand, is only temporary, with property prices stabilizing by the end of next year.

Prices have risen as a result of geopolitical developments that have affected transportation costs. Not to mention Brexit and the coronavirus pandemic, according to Danos.

Prices will deflate once the crest of these tidal waves has passed.

that prices are being pushed up not only by growing building material costs, but also by increased demand as a result of the coronavirus pandemic and the crisis.

Increases have an effect on city properties

Prices of primarily city properties, such as building sites, offices, and new housing projects, have been rising.

that the crisis has struck at an inconvenient time for the industry, just as demand had begun to pick up.

There are a lot of people with money who are looking for a new home or an investment opportunity. We’ve also had interest from foreign Real Estate Investment Trusts (REIT) looking to invest in profitable buildings in Cyprus, he explained.

When asked if the increase in the cost of building materials will offset the market to the point where lowering prices will be a problem in and of itself, he responded that there is now some downward pressure on pricing from property already on the market.

The market is currently being pressed by properties that are already on the market, particularly those owned by banks. Housing units and offices acquired by banks mostly through debt-to-asset swaps are being sold at steep discounts because the banks need to sell them, he said.

This pressure, however, will be short-lived because banks currently have a modest portfolio of such properties, and we’re not talking about prime real property.

Buyers now are looking for new, modern, energy-efficient buildings, and they appear to be optimistic that the market will stabilize in 2022.

Things are already looking good, with the European Union anticipating a boost in GDP and an increase in tourism in 2022.

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Performing inspections on resale properties

Performing inspections

Because of the long-standing problems with Title Deeds, more property purchasers are limiting their searches to resale properties that have been issued with the crucial Title Deed.

(However, even properties with Title Deeds may experience issues.) It’s critical to check that the property hasn’t been extended, a swimming pool or garage constructed, or anything else without the right permission. In a subsequent essay, I’ll go into greater detail on this topic.)

Some people purchase a resale property without first visiting the island to assess what they’re receiving. They frequently make decisions based on flashy promotional materials and marketing hype. This is the biggest understatement since Noah stated, “I think we’re in for a drop of rain!”

Just as you would evaluate a car before purchasing it, you must visit Cyprus and view your potential new permanent/vacation house (inside and out) before parting with your money.

You’ve probably seen those TV property shows where a prospective buyer ‘inspects’ a property. They say things like “This room is a good size,” “I like the decoration,” and “What a beautiful view.” So they like the property and the location, but have they thoroughly inspected it?

Taking a look at resale homes

Here’s some general suggestions for browsing resale properties to get you started:

  • Find someone to accompany you. Someone you trust, such as your husband/wife/partner. They can notice something you overlook and prevent you from getting something you don’t need (see below.)
  • Examine as many qualities as possible.
  • After a few days of severe rain, inspect properties for dampness and leaking windows and doors.
  • Take your time and don’t let estate agents or merchants rush you through a viewing without allowing you to peek around every corner.
  • Make a list of all the characteristics you’d like in a new house. If you’re not sure what characteristics you want, make a list of what you enjoy and don’t like about your current home. When you’re looking at houses, bring this list with you.
  • Allowing yourself to be seduced by a stunning environment, the decoration and furniture, or the attractiveness of the agent or dealer will not lead to a purchase.
  • If you locate a property you like, return to it and do a more complete inspection. Return at various times of the day to watch where the sun rises and sets, as well as the changing traffic conditions.
  • Meet your neighbors if at all possible.

The first thing to look for when viewing resale properties (or any other property) is the location and general condition of the surrounding area and buildings.

The most critical element to consider is location. But, depending on your specific needs and tastes, a “good location” can imply various things to different individuals. Here are a few things to think about:

Check out the region at various times of the day to get a sense of the general environment and conditions, as well as what local amenities are available.

  • Is it a noisy neighborhood?
  • Are there any farm animals in the area? Is their odor likely to be an issue?
  • What is the state of the properties around you?
  • Is there any adjacent industrial or construction activity that could cause a nuisance?
  • Is there any land nearby that could be developed at a later date?
  • How close are neighborhood conveniences like shops, physicians, and dentists?
  • Is there public transportation available nearby?
  • What are the local traffic conditions (peak and off-peak)? Are the local roads in decent condition?

Restrict your search to resale properties in residential zones if you’re looking for a permanent residence. (Many properties in tourist zones are purchased as vacation homes or as investment properties for holiday rentals; many are vacant outside of the peak tourist season, and you may not have permanent neighbors, and some travelers can be noisy.)

Before making a purchase, take some time to look around. Don’t be seduced by the place’s romance; buy with your brain, not your heart.

Take a look at the big picture. You may be fit and active now, but as the years pass, you may not be able to manage a large or steep yard, numerous steps, or the journey to the shops/doctor/hospital, etc. “Buy in haste, repent at leisure,” says the saying.

In July, NPLs accounted for 17.4 percent of total loans

According to the Cyprus Central Bank (CCB),

According to the CCB, NPLs totaled €4.979 billion in July 2021, down from €4.987 billion in June 2021 by about €8 million, as follows:

Non-financial firms – €2.073 billion, including €1.712 billion in small and medium-sized business loans (SMEs).

Households accounted for €2.670 billion.

€236 million in other financial corporations

Total loans, on the other hand, increased by €137 million to €28.528 billion at the end of July, up from €28.391 billion in June 2021.

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Property values fluctuate as Cyprus changes

Property values fluctuate

Large corporations and high-net-worth individuals who acquire houses and apartments to resell or rent to third parties account for 20% of all property buyers in the United States.

This trend has been increasing for the past two years, as people with the requisite financial means purchase homes with the intention of renting them back to prior owners or reselling them to find a tenant.

As financial crises become more common, a growing number of people view the selling of their homes as an opportunity (a misnomer) to earn income to pay off their debts.

At the same time, Generation Y (those born in the 1980s and 1990s) has demonstrated a preference for renting rather than owning a property and prefers to live in cities with more facilities.

Around 80 million of the 140 million housing units in the United States are family residences.

In addition, 15 million of these family houses are rented, with 300,000 units owned by institutional investors.

The remaining, for the most part, are owned by self-employed experts.

While this is a small quantity, it is sufficient to determine which way the wind is blowing.

Cyprus real estate

The concept of owning a home is still appealing to many individuals in Cyprus.

However, we predict that, like most European countries, the local market will eventually follow the same path as the US.

According to a recent review of transactions in Nicosia over the last 18 months, flats accounted for 40% of the transaction value, with two-thirds of these transactions taking place in urban areas.

This reflects a growing trend among Cypriots, particularly the younger generation, to buy apartments rather than houses (which are cheaper, smaller, and closer to amenities), with many of the purchases coming from investors wanting to profit from the growing rental market.

Taking it a step further and looking at the data available, it’s clear that owning a property is losing some of its attraction.

Property owners made up 74.1 percent of the Cypriot market in 2009; by 2013, that percentage had declined to 73 percent, and by 2019 (the most recent data available), it had dropped even further to 67.9%.

In fact, 2019 was the first year in which Cyprus’s percentage of property owners went below the EU 27 average of 69.8%.

People’s housing demands will certainly vary when the country’s demographics shift (fewer births, smaller families) and social norms shift (more employment – more women in the workforce, greater need for blowing off steam/entertainment). Most individuals nowadays do not want a large house with a front yard and a swimming pool.

They want a smaller, more functional unit that is close to amenities and has minimal operating costs because they plan to spend a lot of time going out for coffee/dinner and traveling.

Furthermore, compared to thirty years ago, the number of people who can afford these residences has reduced dramatically.

We see this on the websites of asset management firms as well: large properties take years to sell, whereas apartments are much more liquid.

The population and households in Cyprus have expanded dramatically over the previous thirty years (from 185,459 households in 1992 to 303,242 households in 2011), resulting in several changes in the supply of residential property.

The main rise in supply, however, has been to meet the needs of international purchasers rather than locals.

Over the last two decades, the native population has gotten older and family sizes have dropped.

While we wait for the results of the 2021 census, in 1992, the number of households (i.e., permanent inhabitants) with one and two individuals was 69,418 and 156,679, respectively, accounting for only 37% of all households.

That number grew to 52 percent in the 2011 census.

Households with four or more persons, on the other hand, decreased from 45 percent in 1992 to 30 percent in 2011. (83,792 in 1992, 91,266 in 2011).

The arrangement of the housing units under construction has also changed.

In the 2001 census, residences with up to five rooms (including kitchen and living room) accounted for 52 percent of the total, but by 2011 that figure had risen to 61 percent.

Houses with three and four rooms saw the greatest percentage growth (18% and 23%) throughout the same time period, which is consistent with how families have altered over time, with family sizes shrinking and young Cypriots having 1-2 children.

The property market will continue to follow the increased demographic shifts. As a result, both the government and the private sector, i.e., developers, banks, and investors, must take the required strategic steps to account for them so that they are not forced to make decisions after the fact.