Purchase of land for construction in Cyprus – Is it worthwhile?
Cyprus is an island nation located in the developing Mediterranean, considered a tempting destination for those seeking relocation and real estate investments.
One popular investment option in the country is the purchase of undeveloped land for construction purposes. While some people may be hesitant due to the idea of building a house from scratch in a country with a different language, laws, and customs, there are several prominent advantages worth considering.
This article examines the benefits of this creative investment avenue and explains why purchasing land for construction is an interesting option for those contemplating a move to Cyprus or looking to diversify their investment portfolio with real estate potential.
Cyprus as a Magnet for Real Estate Investors
Before discussing the purchase of land for construction, it’s important to know that Cyprus is a sought-after destination for real estate investments in general. This is attributed to its geographical location in the Eastern Mediterranean, stunning landscapes, virgin beaches, and moderate climate. Additionally, Cyprus is known for being convenient and investor-friendly in terms of taxation.
The legal and regulatory considerations of a country have a significant impact on the overall cost and feasibility of real estate transactions. In this context, the government of Cyprus has undoubtedly been doing a good job and encouraging foreign investments.
Why Consider Purchasing Undeveloped Land?
- Maximum freedom and complete control over property planning and design: One of the main advantages of investing in undeveloped land is the freedom it provides to the buyer and the ability to tailor the property precisely to their budget, preferences, and personal needs. For those interested in building luxury villas, for example, purchasing land and self-building is the ultimate option. When constructing a villa, the aspect of personalization is crucial, and in many cases, villa buyers prefer to plan and build their dream homes rather than settling for a second-hand property.
Of course, the flexibility of an empty plot for construction opens up various other possibilities, such as building multiple vacation units for short-term rental or a private residence with an adjacent rental unit generating a steady income. Undeveloped land is essentially a blank canvas on which any real estate vision can be painted (within legal boundaries, of course).
- Long-term investment: Undeveloped land has the potential for significant growth. The real estate market in Cyprus has been steadily growing in recent years, and investments in land have proven to be lucrative. With thoughtful planning and development, such an investment can be an economic leap in the long run.
- Tax benefits: Cyprus offers tax incentives and various advantages for landowners and investors. These benefits can range from reduced property tax to exemptions on capital gains. Understanding and maximizing these different incentives can significantly improve the profitability of the investment.
It’s crucial to understand that the process of purchasing land for construction in Cyprus is a complex task that requires in-depth knowledge and understanding of all the aspects and details involved in the purchase process. This is where a trustworthy and professional real estate agency plays a decisive role.
Having a deep understanding of the local market, legal requirements, and potential pitfalls is of immense importance. Therefore, it is highly recommended not to forego guidance from an expert in the field, who can connect the buyer with professionals in various domains, ensuring a smooth and successful transaction.
If you dream of purchasing land where you can realize your aspirations, we, “Keynote Assets,” are here to accompany you every step of the way.
We, Dr. Noam and Alice Shani, a couple of Israelis who moved to Paphos, Cyprus, established the company in 2017. With multiple profitable properties in our portfolio, we also founded a real estate fund in 2021, through which we conducted numerous property acquisitions for rental purposes in the region.
We understand the Cypriot real estate market thoroughly and, equally important, the Israeli side of the currency exchange.
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