The property market in Nicosia differs from that of the coastal cities. Demand in property is peaking, with Nicosia maintaining an imposing business centre compared to other cities. More and more international companies are now established and based in Nicosia. In most cases those companies occupy a large foreign workforce. On the other hand there is a big number of Cypriots who are permanent residents in other cities but choose to work in the capital as there are more opportunities for career advancement. The Government sector also employs many people from other cities, as all the government institutions are situated in Nicosia, with the majority of them moving to the capital eventually. In order to cover the needs of all these people, the property market is maintained strong, when the scarcity of land increases the demand and therefore the value.
Considering that Nicosia is home to the state university, another three private universities, numerous colleges and the majority of the Tertiary Institutions that operate under the jurisdiction of the Government, thousands of young students move to city during their studies. This is the reason why Nicosia boosts competitive and year round rental market, instead of seasonal rentals that are most common to the tourist cities. In the future, demand in rentals will also be affected positively due to the strategic target announced by the Universities to grow and attract bigger numbers of students from the Mediterranean and the Meddle East.
Commercial property market in Nicosia is thriving. Competition is high, mostly in the city center and the suburban commercial centers, with the country’s most important companies being based or maintaining branch offices in the capital. Commercial property in Nicosia provides high profit margins and as a result, the prices are consistently and steadily increasing.
The phenomenon of younger people choosing to live outside the family nesting home has only appeared the last years and is becoming popular and causes great impact the increasing demand in residential apartments. In Addition, more and more Cypriots are confident to buy property from property developers and tend to avoid involvement in the construction process.
Nicosia suggests a broad variety of options, as well as opportunities for the investors, both in the residential and the commercial sector. One can build a multi-storey building and sell or rent apartments for private or commercial use. Another option is to rent an apartment with buy to let agreements. Off-plan purchase is becoming quite common, especially regarding commercial buildings. Due to the scarcity of land and the steady increase in prices, a smart, long-term investment in Nicosia would be to buy land for future use. Demand is always at high levels mostly in commercial centers of the city, but also in highly sought-after residential areas in the suburbs and around the universities. After a few years’ time, the returns of the certain piece of land will be exceptional!
Predictions for the future potential of the Nicosia Property market are optimistic. Investors anticipate generous return from rental in the near future. Due to the disproportionate increase in property prices to rental increases the cost to buy a property will exceed the purchasing power of the people. As a consequence the demand in rentals will increase and since rise in demand is directly proportional with rise in prices, rents are bound to rise as well. Further more, in the last year, a strong move from foreigners acquired property in Nicosia, showing a preference in year-long rental contracts offered in ample in Nicosia, rather than the short-term seasonal rentals on the coastline.
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