The real estate market in Cyprus is on the rise. The market is expected to experience steady growth with an annual growth rate of 4.05%.

This factor alone is enough to alarm foreign investors who are always searching for business opportunities.

Urban and rural real estate markets can have significant differences, especially regarding price, demand, and amenities.

The Cyprus real estate market offers a diversity of options, from crowded urban areas to peaceful rural landscapes. Understanding the differences between the two markets is very important whether you want to buy or invest. In this article, we will explore the key factors that differentiate these two markets and provide insights into their respective characteristics while describing each market’s biggest advantages and disadvantages.

Before we continue, it is crucial to understand the specifics of the Cyprus real estate market.

Cyprus has an area of 9.251 sq. kilometers. It has a maximum length of 240 km from east to west and a maximum width of 100 km from north to south. The Greek mainland is some 800 km to the west.

However, the Republic of Cyprus is divided into two parts: the area under the effective control of the Republic of Cyprus, in the south and west and comprising about 59% of the island’s area (the Greek Side), and the north, administered by the self-declared Turkish Republic of Northern Cyprus, covering about 36% of the island’s area. Another 4% of the island’s area is covered by the UN buffer zone. The international community considers the northern part of the island to be the territory of the Republic of Cyprus occupied by Turkish forces. The occupation is viewed as illegal under international law and amounts to illegal occupation of EU territory since Cyprus became a member of the European Union.

Investors must be very careful not to invest in the Occupied area of Northern Cyprus because they may encounter legal challenges related to property boundaries, ownership rights, and unresolved claims. Imagine paying for a property from a non-recognized state/territory and the property legally belongs to a third party who is not even aware of the purchase and has not given his approval.

Understanding the distinctive nature of the local market is of vital importance. To elaborate, differentiating from rural to urban markets for a small island like Cyprus is a completely different story than differentiating between the UK’s urban and rural property markets.

For example, when buying a Rural property in Cyprus to build your home, does not necessarily mean that it will take you a long time to get to work, in some cases, it is only a 30-minute drive. It is good to know, that the furthest distance to travel in Cyprus between cities does not exceed a 2.5-hour drive.

Location and Lifestyle: Urban Areas: Cyprus’s urban areas, such as Nicosia, Limassol, and Larnaca, are known for their vibrant city life and modern amenities. These areas offer a wide range of housing options, including apartments, townhouses, and luxury villas. Whether you wish to live in a luxury apartment in the heart of the Capital (Nicosia) or a luxury villa on the beachfront of the city of Larnaca, living in an urban area provides easy access to shopping malls, restaurants, schools, and amenities while you do not miss out on employment opportunities due to long distance restraints. However, urban living is usually associated with traffic congestion, pollution, a decline in air quality, and a higher cost of living.

Rural Areas: On the other hand, rural areas in Cyprus, offer a tranquil and picturesque environment. Beautiful landscapes, traditional villages, and slower rhythms often characterize these areas which offer a more relaxed lifestyle. Rural properties usually include traditional stone houses or modern and luxurious villas surrounded by nature.  Amenities and services are usually more limited compared to urban areas.

Property Prices: Urban Areas: Buying property is usually cheaper in Rural areas compared to Urban areas due to higher demand, especially from locals. This does not necessarily mean that locals know better, it is just that the norm of Cypriot society is to live close to their relatives. The cost of living in cities like Nicosia and Limassol is generally higher compared to rural areas. However, urban properties have a higher potential for ROI (Return On Investment) and capital appreciation.

Rural Areas: Rural properties in Cyprus are generally more affordable compared to urban areas. The lower demand and higher supply contribute to lower property prices. This affordability makes rural areas appealing to those seeking a more budget-friendly option or are on the lookout for investment opportunities.

It is good to mention that there has been an upward shift in the demand curve for rural areas, and people choose to give up on some of the luxuries that come with living in an urban area so that they can live a more relaxed lifestyle. Also, buying cheaper land leaves you with more money to spend on your house and this translates to a bigger house and property compared to urban area options.

Investment Opportunities: Both Rural and Urban areas in Cyprus offer excellent investment opportunities. The high demand for Urban areas can have a guaranteed return on rent especially in tourist areas where you can rent the property for a higher value. On the other hand, rural areas, provide a more affordable option, while having also the option to utilize the properties for Agro-tourism. Keeping also into mind that overpopulation tends to drive people out of the Urban areas and this creates opportunities for a huge capital appreciation if you invest wisely.

In conclusion, the choice between the two always depends on individual preferences, personal needs, and of course, the budget.

Urban properties usually offer a higher return on investment compared to Rural properties but come with much higher initial costs. Rural properties are cheaper to buy but can offer a more relaxed lifestyle and although the expected return on investment in the short term will be lower, you can never know the future when buying a land. The social trends, the norms, the way of living, and the global economy are constantly changing at a pace that we have never experienced before.

Always remember to conduct thorough research, consult with local experts, and consider your personal needs and preferences before making any investment decisions.

Our experienced team is ready to assist with your needs and help you make the best possible investment decision with a minimum and calculated risk while ensuring your funds are invested in a safe property.

“Don’t wait to buy real estate. Buy real estate and wait.”