Nicosia real estate market: cost, development, areas. Trends and prospects

In Cyprus, property sales to non-EU foreigners are breaking records, attracting mainly resort towns such as Limassol, Larnaca and Paphos. However, there are compelling reasons to pay attention to the island's capital, Nicosia.

Nicosia, the capital of the Republic of Cyprus, is one of the fastest growing cities on the island. In recent years, there has been active construction of high-rise buildings, as well as the development of new areas.

In recent years, iconic high-rise candle buildings have begun to appear in Nicosia, following Limassol. For example, tower “360”, “Tower-25”.

These buildings attract the attention of tourists and business people, but cause mixed reactions from local residents. Some believe that they spoil the appearance of the city, while others see them as a sign of economic growth.

The old center of Nicosia, inside the preserved fortress walls, is not valued as a place to live and is considered a refuge for migrants. Many of the houses here are well-worn, with old communications.

Perhaps due to the deplorable state of the housing stock in general or because of the existing image of the area, a more systematic approach is needed, gentrification. There are some interesting options in the center, but they are rather the exception.

Agios Homologites is a small area located near the center of Nicosia near the parks of Grammiko and Dimitrios. There is a school, kindergarten, shops, cafes, restaurants. From here you can easily reach any part of the city by car or public transport.

Agios Dometios is an area also located near the center. Residents have access to all necessary infrastructure. One of the magnets of the place is the University of Nicosia, which is adjacent to the buffer zone.

Dasoupolis is a small area near the center of Nicosia. There is a school, kindergarten, shops, cafes, restaurants. The area is convenient for those who work or study in the city center.

Strovolos is a large area that is considered one of the most successful for purchasing real estate. It has excellent infrastructure for families with children and pets, business people, and outdoor enthusiasts. The area is ideal for students of the European University of Cyprus.

Aglanda and Plati are areas located in the south-eastern part of Nicosia. They are adjacent to the giant Athalassa Forest Park. In terms of infrastructure, they are somewhat inferior to Strovolos, but the proximity to the green zone is an undeniable plus. In addition, they are loved for their calmer atmosphere. Aglanja is an excellent choice for both families with children and students - the University of Cyprus is located nearby.

The economic growth. Cyprus is one of the fastest growing economies in Europe. This attracts investors and immigrants to the country, which leads to an increase in demand for real estate.

Tourism. Nicosia is a popular tourist destination. The development of the city will contribute to the further growth of tourist flow.

The Cyprus property market continues to develop. In the first eight months of 2023, about 13,000 transactions were concluded, which is 10% more than in the same period last year. At the same time, the share of housing sales to foreigners increased by 76%, reaching 31% of the total number of transactions.

In general, the demand for property in Cyprus is growing both from local residents and from foreigners. However, in Nicosia the situation is somewhat different from the general trend. The share of home sales to foreigners in the capital is only 11%, which is significantly lower than in other cities of Cyprus.

Firstly, Nicosia is the capital of Cyprus and the political center of the country. This means that large government agencies, banks, companies and other organizations are concentrated here. Accordingly, the demand for real estate in Nicosia from local residents is traditionally high.

Secondly, Nicosia is the cultural and educational center of Cyprus. Universities, museums, theaters and other cultural institutions are located here. This attracts students, teachers, artists, musicians and other representatives of creative professions to the capital.

Thirdly, Nicosia is a relatively inexpensive city. Real estate prices here are 20-30% lower than on the coast. This attracts investors to the capital, who expect housing prices to rise in the future.

Property prices in Nicosia vary depending on the area, type of property and condition.A ready-made apartment in a new building with good finishing, far from the center, can be purchased for a price of 90,000 euros. Sellers are asking about the same amount for old, unrenovated housing in the center.

Prices for 1-bedroom apartments in good new buildings in comfortable areas start from 100,000 euros.

For example, a 1-bedroom apartment in a newly built building in the Kaymakli area near Frederick University is on sale for just €105,900 (plus VAT).

A low-rise complex is being built in the same area. The cost of an apartment with 2 bedrooms is from 173,000 euros (plus VAT). A 1-bedroom apartment (67 sq.m.) in a low-rise, interesting building in the final stages of construction is offered at a price of 125,000 euros (plus VAT).