Increase in Demand for Land Purchase in Cyprus

Cyprus, historically an attractive region for real estate investors, continues to affirm its status as one of the most sought-after investment destinations. According to the latest Deloitte report for 2023, there were 25,400 real estate transactions totaling 5.6 billion euros.

Residential property transactions took the top spot, while land purchases in Cyprus ranked second in popularity among investors last year. In 2023, there were over 11,000 land purchase transactions in Cyprus, totaling 1.9 billion euros, accounting for an impressive 34% of all sales.

This is a clear indication that investing in land and subsequent development remains a profitable and promising choice for many investors.

Land Purchase in Cyprus in 2024

The first quarter of the current year, 2024, also confirms a steady growth in interest in land plots in Cyprus. Compared to residential properties, plots of land where construction is permitted (additional building permits are required) are becoming increasingly sought after among buyers.

During the first three months of 2024, a total of 462 land plots were sold across the island, with the greatest interest being shown in plots in Nicosia and Larnaca. These regions stand out from the rest due to the significant number of purchase transactions. Nicosia leads with 143 sold plots, followed by Larnaca with 141 plots.

The average prices of land plots with building rights in Cyprus also influence investors’ decisions. According to data for the first quarter of 2024, the average price per plot with building rights in various regions of the island is as follows:

• In Paphos, the average price per plot is approximately 276,468 euros.
• In Limassol, the average price per plot is 207,875 euros.
• In the Famagusta region, the average price is around 196,857 euros per plot.
• In Larnaca, the average price for a land plot is 182,350 euros.
• In Nicosia, the average price per plot is approximately 167,966 euros.

These figures confirm that Cyprus remains an attractive destination for real estate investment, especially in the land plot segment with building rights. With a variety of regions and available plots, investors can find the optimal balance of price and quality that suits their investment strategies and needs.

What Drives the Surge in Interest in Land Plots in Cyprus?

The increase in interest in land plots in Cyprus can be attributed to several key factors:

• Firstly, it’s the opportunity to create customized housing according to one’s tastes and needs. Land plots offer buyers unique flexibility in designing and building homes, attracting those who seek individuality and comfort.
• Secondly, land plots are viewed as potentially profitable investments for construction. Building residential complexes or commercial properties on these plots can yield significant profits in the future, considering the steady demand growth for real estate on the island.
• It’s also worth noting Cyprus’s stable economic development and its attractive tax regime, making real estate investments on the island even more appealing to international investors.

Overall, the combination of unique customization opportunities for housing, the potential for high investment returns, and the favorable investment climate make land plots in Cyprus an attractive investment option.

The increase in demand for land plots in Cyprus in the first quarter of 2024 indicates dynamic changes in property buyers’ preferences and may serve as an indicator of future trends in the real estate market of this region.

Buying land plots and engaging in construction in Cyprus continue to be a promising and profitable area for investment in the current year, 2024. Discuss your ideas with our experts today and start implementing your investment plans in Cyprus.

We are happy to arrange a meeting for you at our office in Larnaca or online!