Nicosia Properties

Nicosia is the capital of Cyprus and is a dynamic, multinational city with its busy rental market. It has all the infrastructure of a capital city and very good schools.

The ancient part of Nicosia was once completely enclosed by stone walls that were built by Venetians and the original gates of the ancient part were preserved.  At some places the walls are in very good condition even today. There are also several museums in the centre of the ancient part of Nicosia. One of them is the Museum of National Struggle.

Laiki Geitonia is one of the most beautiful areas in Nicosia. This area is only for pedestrians and has many handicraft shops and taverns with their excellent, inexpensive food.

Property in Nicosia is reasonably priced since there is less development than on the coast and it takes only 30 minutes drive down the highway to the Larnaca's beaches.

Property Investment in Nicosia

Nicosia has built a strong property market within both the commercial and the residential sectors and offers some good investment opportunities for Cyprus property purchasers.

Nicosia commercial property market is very competitive and attracts high profit margins and as a result property prices have been rising consistently.

Prices have increased due to the lack of land.

Nicosia provides work for a large foreign workforce because of the many Cyprus based international companies. The mainstream of the foreign labour consists of immigrants looking for better working conditions and quality of life. Additionally Nicosia attracts a private workforce from other towns of the island because most Cypriot private companies and the majority of its government institutions are based in Nicosia.

Both foreign and local investment has played a important role in forming the demand in the Nicosia property market and capital is invested aggressively every year.

The recession of the Cyprus Stock Exchange pushed most capital investment towards the property market in preference to the weakly performing stock market. Nicosia's property market benefits from the full confidence of Cypriot investors because of its very positive performance over the last 15 years.

In the capital city of Nicosia there are more than a hundred listed development companies as well as many small developers providing new housing for the growing population. In spite of the increase in demand for housing, most of new developments are sold off-plan and most of them before they reach the final stage.

A new wave of foreign investors has started to purchase property in Nicosia during the last year. Many of them choose the long term rental contracts in Nicosia rather than seasonal rental contracts of other towns.

Investors expect growth of rental income in the near future. Property prices have increased excessively to rental increases. While growth of demand increases prices, the local population's income will not be sufficient for property purchase. This will increase rentals demand and as a result it will stimulate a rise in rents.

Market Trends That Form Nicosia's Property Market:

Cyprus property market has changed significantly in the last few years due to political changes and influences in the socio-economic structure of the island.

a. Accumulation of foreign workers on the island while EU accession increased the loyalty of foreign investors.

b. The phenomenon of young people who have their own place to live in is becoming very popular in Cyprus. This has a huge influence on the demand for residential apartments and a superior standard of living for young professionals.

c. Cypriots are usually more confident of buying new properties from developers than getting involved in the building process by themselves.

d. Nicosia is the education centre of Cyprus and aims to develop further into the Mediterranean and Middle-East.

e. Many international companies show considerable interest in registering in Cyprus following plans of the Cypriot government for tax incentives (corporate tax of 10%). EU accession helps in this effort, grant an additional sense of security and stability for the foreign companies. According to the Cypriot company registration authority, a significant percentage growth has been observed in the number of new companies applying for registration.

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