Key opportunities for landlords
Despite the many challenges affecting the global economy in 2022, the property market in Cyprus continues to show significant resilience. Rising prices, especially in certain key locations, highlight the fact that there is real demand for property and the potential for good returns for anyone wishing to invest in property for the rental market.
What are the underlying strengths of the Cypriot property market?
We probably all know about the great weather, beautiful scenery and safe and relaxed approach to life that makes Cyprus a popular year-round tourist destination and an attractive place for many retirees and remote workers to become permanent residents. But there’s more to it than that. The Cypriot economy is mainly based on the service sector and a low corporate tax rate of 12.5 per cent, one of the lowest in the European Union, has attracted many multinational businesses to set up operations in Cyprus. This has fuelled economic growth and created demand for property, be it to buy or rent. The growth in the Cypriot economy has also seen certain areas increase in popularity as specific development projects like, for example, the new luxurious Ayia Napa Marina in the Famagusta area, attracts investors.
Choosing the right location
If you are thinking about becoming a landlord in Cyprus then the first thing to think about is location. Where is there the greatest demand for property? The most recent data from RICS Cyprus Property Index covering the second quarter of 2022 shows that prices are increasing the most in Larnaca and Famagusta, due to their growing popularity both among expats and holiday makers as well as Cypriots looking to relocate to some of the most beautiful yet dynamic areas of the Island. What is also interesting to note is that despite these increases and a long-term upward trend in property prices which started in 2015, the cost of buying a property in Cyprus is still below 2009 levels. This proves that the property market in Cyprus still offers excellent value for investors.
Choosing the right type of property
Understanding which locations are the most in demand is an important first step in making the most of the opportunities which becoming a landlord in Cyprus offers. The next step is to think about what type of property you should invest in to maximise your returns. The current trends show prices of apartments growing at a faster pace than those of houses. Once again Famagusta and Larnaca are leading the way in this trend, but prices are also increasing in Paphos and Nicosia, while those in Limassol remain stable. In reality, therefore, there are good opportunities for landlords across the country so it could come down to simply choosing the area you personally prefer.
When thinking about where the best opportunities are for landlords in Cyprus you can also find out market information on rental prices. These have also increased over the past year with the most recent data showing that the price for renting a house has increased by some 12 per cent on average over the past year while the cost of renting an apartment has increased by nearly 10 per cent. This growth in prices shows that the rental market in Cyprus remains bullish and that landlords have a definite opportunity to generate an income which not only matches, but exceeds, current levels of inflation.
At the end of the day, whether you want to invest in a house or an apartment, or offer your property for short or long lets, the important thing is to understand the opportunities that exist and to take decisions that make sense for you. This decision making process can be a difficult one so you can always to a Quicklets letting specialist who will be more than happy to answer any questions and guide you.
A well regulated, professional market
A final important factor that makes Cyprus an ideal market to invest in property for rental is the quality of the professional support you will need to succeed. There are plenty of good lawyers who can ensure you have all the right paperwork in place and draw up tenancy agreements which cover all the legal requirements and ensure your rights as the owner of the property are protected. The same applies for other services, be it finance and accounting as well as property management. This will help you to keep your tax affairs in good order and protect your investment by making sure the property is well maintained at all times.
Making the most of your property investment in Cyprus
Becoming a landlord is a big step. You not only need to find the right property in a great location, but you also need to prepare yourself for the ongoing obligations which come with being a landlord. Taking the plunge, however, can be an extremely rewarding experience. As we have seen, Cyprus offers lots of opportunities for landlords. The market offers landlords a significant degree of choice when it comes to the type and location of the property you may wish to invest in and there is plenty of expert support available across the Island for those who need it.
Of course, at QuickLets, we are experts in the rental market in Cyprus so if you are thinking of investing, we would love to hear from you. Not only is our team well placed to give you advice on choosing a property, but we will also be able to manage the letting process and connect you with suitable tenants quickly. For more information take a look through our website at https://www.quicklets.com.cy/