In contrast to other property types, land is rarely subject to depreciation. Land in Cyprus is scarce, thus its value grows fast according to the laws of demand and supply. Those who want to invest in land should actually consider it as a long term investment. Land is said to be the smartest and fastest way for investment, as the rewards can be quite exceptional with land prices increasing after a few years.
In Cyprus many people decide to purchase land for undetermined future usage. This piece of land may stay in the family for years without being developed or exploited. More and more people are buying land which they hold for a long-term appreciation. A good strategy would be to locate parcels of land which are undeveloped and the value is bound to increase as the parcel lies in the path of urban growth.
According to your needs you can investigate the potential changes in use. For example a change from agricultural or redundant industrial use to residential or commercial use, will automatically increase the value of your land. Rezoning for development purposes will also facilitate your land with utilities and improve significantly the building factor which is catalyst to the ways you can invest in your land and therefore affects directly the value.
Investors should keep in mind that the value of land that is not connected to the utilities and does not have a planning permission is considerably less than the value of a land parcel meeting all the above. This is due to the quite high cost that it takes to connect to all the utilities and the time it takes to expand the planning permission to your land.
One good reason to buy land for future use will be to avoid all these costs, as the time will come that everything will be done in an easier and more economical way.
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