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Foytina is a registered & licensed real estate agency (Reg.No:628 / Lic.No:332/E)

Property Market

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  • General
  • The Market of Cyprus
  • Property Pricing Factors

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General

The designated Planning Zone to a piece of Land denotes its' 'development rights' and the degree of up to which it can be built up. It is actually this 'right' that buyers are called to pay when buying the land! Bearing this in mind, quite logically someone could come to the conclusion that places with lower building density should be comparatively cheaper; this is pretty truth. Such places are mainly the suburban and rural areas. However, this is not always applicable as the 'Demand & Supply' factor seems to complicate the Market of real properties and set its' own micro-market principles.

The nowadays trend of people to build their own home in a remote area -regardless the actual motives- by relying on the car-use convenience, has 'pushed' all of the recent development in Cyprus towards the rural areas. The result was to maximise the Demand and of course the value of Land in the countryside. (The reasons of this result are numerous & cannot be extensively described here). On the other hand though, the consumption of the countryside and Greenfield Land has no precedence. This vast 'waste' of Land is in contradiction with the current policies both on the National and European level, which actually aims to develop the so called 'compact eco-settlements'. The major obstacle though in Cyprus for delivering such settlements (villages, townships, towns, etc) is the constitutional inalienable right of property ownership which at the end of the day cannot completely stop the human activities in the countryside in a direct manner.

All of these trends, including many other significant factors, have dramatically and in a complicated way affected the value of real properties in Cyprus, particularly the value of Land.

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 The Market of Cyprus

In heavily populated areas of Cyprus where the allowed coverage factor (footprint) is more than 50%, prices are around EURO 1600 per covered square meter. In other areas where the allowed coverage is only 20 - 30%, prices range from EUROS 2.000 to 3.500 per covered square metre, or even more in more exclusive areas such as commercial roads, seaside areas or gated communities.  A comparison between different types of buildings indicates that apartments are the cheapest ones, townhouses come second whereas detached houses (villas) are the most expensive dwellings to purchase on a covered square meter basis.

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Indicative Prices per covered square meter in EUROS per Administrative District in Cyprus

2004-20072007-20102010-

Nicosia

 

Villas940-15301200-25001100-2400
Apartments850-12751200-20501100-2000

Limassol

 

 

Villas850-14501000-35001200-4500
Apartments765-13501100-20001000-2300

Paphos

 

Villas850-15501200-42501200-4000
Apartments680-13601200-25001100-2500

Larnaca

 

Villas680-12751000-34001000-3000
Apartments680-1275900-1700900-1500

 

In the case of lower allowed coverage, much more land is included in the plot, allowing more amenities such as private garden, swimming pool and privacy as the distance between the buildings is more. This of course requires more land if it is to keep the total covered area of a house on a descent level.

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Property Pricing Factors

It is not easy to price a real property!  Talking about money it is important to distinguish in our minds the difference between 'price' and 'value'.  'Price' denotes strictly an amount of money whereas 'value' can be perceived as moral value, social value etc.

The factors that affect the price of a real property are many but the major of them are: the age of the property, the condition of it, the status of the title deeds, the location, its' orientation, the view enjoyed, the convenience to amenities and other infrastructure, the degree of privacy, the walking distance from various facilities/services or the sea, the social class of the neighbours, the supply and demand of the micro-Market, the street network type, the taxation in effect, the liquidity of the Market, the credibility of the banking sector ar well as the public debt, the planning zone designated to the property etc.

All of these factors are always considerable and determinant for the pricing a real property. In Cyprus for example, there is a trend of seaside property owners to ask for extraordinary amounts of money. As properties that adjoin the coastal line become less and less in the island's market, those numbers will become astronomical.

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The 'Foytina.Com' Team

 

Foytina is a registered & licensed real estate agency (Reg.No:628 / Lic.No:332/E)