Construction in Cyprus: 2024 Trends

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Have you considered how to invest your funds for high and stable returns? Construction in Cyprus represents a strategic choice that ensures financial benefits and stands as the number one investment trend.

Interest in construction investments in Cyprus is growing every day. For many, it is the most advantageous investment option at the moment. The demand for high-quality housing in Cyprus remains at its peak, offering unique opportunities to invest in the construction sector.

If you’re considering a construction project in Cyprus, this article is for you. Here, we will not only discuss important aspects of acquiring land for construction but also present the latest trends and prospects in the construction industry.

Our experts are ready to share their knowledge and provide comprehensive legal support at all stages of your project.

Don’t miss the opportunity to discuss your idea with our team of experts! Contact us for an in-person meeting at our office or an online consultation and start creating your successful project in Cyprus!

 

Why Construction in Cyprus is the Number One Investment Trend

Why construction in Cyprus has become an essential part of many investors’ portfolios. Experts highlight several key factors that make construction in Cyprus the top investment trend:

1. Growing Demand for Housing

The construction boom in Cyprus is driven by a significant increase in demand for high-quality housing. This creates ideal conditions for successful construction projects, ensuring stable returns for investors.

2. Tax Benefits and Economic Stability

Cyprus offers an attractive tax system and economic stability, making it an appealing destination for investment and business operations.

3. Affordability

Compared to other European Union countries, the cost of land in Cyprus remains accessible. This opens opportunities for both large-scale construction projects and individual housing developments.

4. Potential Returns

Investments in construction in Cyprus can yield returns of up to 35%. This high profitability attracts investors seeking substantial returns on their investments.

5. Stable Legal Environment

Cyprus provides a stable and predictable legal framework for investors. Transparent property ownership regulations and robust protection of property rights create favorable conditions for investing in construction projects. This ensures investor confidence and supports the sustainable development of the construction sector on the island.

📌 Read more: Why is it now profitable to invest in land in Cyprus and real estate construction?

To successfully invest in Cyprus, it’s essential to have the right approach and strategy based on professionalism and experience. Our team of experts is ready to provide services at every stage of your investment journey and help you achieve your desired results.

Purchasing Land for Development in Cyprus

 

Purchasing land for development in Cyprus is one of the most crucial steps for those planning to invest in construction on the island.

Initially, selecting the right plot of land plays a pivotal role in determining the success of your future project. It impacts its cost, accessibility to utilities, and potential for development. Our experts will assist you in choosing the perfect option that aligns with your investment goals and needs.

An important aspect is the presence of a Title Deed – the primary document confirming ownership of real estate or land in Cyprus. The absence of this document can lead to serious issues, as without it, the owner cannot fully dispose of the property or land, including the ability to sell or mortgage it. Only a Title Deed, registered in the owner’s name, grants full rights to manage the property. The presence of a Title Deed plays a key role in ensuring legal protection and investment security.

Also, when selecting a plot of land, consider the building coefficient, which determines the maximum number of square meters allowed for construction and is expressed as a percentage of the total area of the plot. A low building coefficient may limit opportunities for implementing construction plans, even if the plot initially seems attractive.

Land prices in Cyprus in 2024 vary depending on various factors. For instance, prices in Limassol may start from €600 per square meter of land suitable for construction and can reach thousands of euros, especially if the plot is located close to the sea.

In Paphos and Larnaca, you can also find various options with different pricing policies. For example, a residential land plot in Larnaca with an already licensed construction project covering a total area of 570 square meters, may be available for around €360,400.

It’s worth noting that purchasing land with a pre-developed project and a valid license provides the opportunity to commence construction and sales simultaneously right after acquiring the plot.

Due to the affordability and diversity of offerings, the city of Larnaca, as well as nearby Aradippou and Livadia, are becoming popular choices for investors looking to implement construction projects in Cyprus. It’s precisely here where numerous new residential complexes and commercial properties are actively being constructed.

Legislation and Legal Aspects

 

The government has implemented a new process for expedited construction permits in Cyprus, aimed at reducing processing times from several months to 10 or 20 days. Under the new Urban Planning Policy, applications for construction permits can be submitted to all district planning offices as well as to four major municipalities – Nicosia, Limassol, Larnaca, and Paphos. This significantly simplifies the process, making it more accessible to all parties involved.

The new policy covers the issuance of planning and construction permits intended for the construction of up to two residential units. When applying online, the process takes about 10 days. For paper applications, the timeframe is around 20 days.

To utilize the online application for expedited review, your plot must be qualified as residential land suitable for construction.

Reality of the Process: Be Prepared for Delays

Despite the stated timelines, investors should be prepared for the process to take longer in practice. While the Cyprus government is actively working on streamlining procedures and reducing bureaucratic delays, the actual situation may involve additional stages and checks that extend the review period.

New Initiatives to Support Investors

President of the Republic of Cyprus, Nikos Christodoulides, speaking at the annual General Assembly of the Association of Large Investment Projects on May 15, 2024, announced the preparation of a new revised plan to incentivize the legalization and licensing of new construction.

The introduction of new incentives promises to further strengthen this trend and provide investors with new opportunities for development. In this context, the Cyprus Government has taken initiatives for structural changes, investment support, and bureaucracy reduction.

The introduction of new rules is expected in the summer-autumn of 2024. It is planned that these new rules will truly improve and expedite the process of obtaining construction permits, making it even more convenient and efficient for investors.

We keep track of all legislative updates and inform our clients of significant changes, ensuring that you are always aware of the latest developments and can plan your projects as efficiently as possible.

Trends and Innovations in Construction in Cyprus

 

In 2024, several trends and innovations continue to shape the construction industry in Cyprus, which developers have been following for several years. One key trend is the growing demand for eco-friendly residential complexes. This includes the use of solar panels to generate electricity, leading to reduced electricity costs. Consumers increasingly prefer housing built with energy-efficient technologies.

Developers in Cyprus are actively implementing modern concepts for residential complexes, offering a wide range of services and amenities for comfortable living. New projects typically include the following features:

Gated projects ensuring security and comfort for residents, including guarded areas and surveillance.

Energy Efficiency Class A, contributing to reduced energy expenses.

Parking spaces with charging stations for electric vehicles, meeting modern ecological standards.

Fitness facilities for residents promoting an active and healthy lifestyle, including fitness or pilates zones.

Individual storage spaces for each apartment, providing additional storage and comfort, allowing residents to organize their space as they wish.

Open playgrounds with modern safety systems for children.

As an example, you can explore the characteristics of a residential complex under construction in the city of Larnaca by the developer Centota. This complex serves as a prime example of modern residential complex concepts in Cyprus, offering a wide range of services and amenities for comfortable living.

These innovations and trends in construction in Cyprus reflect the desire for modern residential spaces capable of meeting buyers’ needs.

Prospects for the Development of the Construction Sector in Cyprus

 

The prospects for the development of the construction sector in Cyprus remain optimistic. With sustained growth in tourism and an increasing number of people looking to buy property in Cyprus, further growth in demand for housing and commercial properties is anticipated.

In 2023, there were 25,400 property transactions totaling €5.6 billion. From January to April 2024, 4,963 properties were sold in Cyprus, reaching the highest level since 2008. This is 4% higher than the same period in 2023 and 45% higher than in January-April 2019.

The rapid increase in property transactions, particularly in recent years, indicates a strong and stable market dynamic. This opens up broad opportunities for investors in residential and commercial construction, ensuring high demand and, consequently, profitable project outcomes.

Therefore, the current time presents an ideal opportunity to start a construction project in Cyprus, considering the favorable market conditions and prospects for the successful realization of your venture.

 

Our lawyers in Cyprus are ready to provide you with comprehensive support at every stage of your construction project: from carefully selecting the land plot, registering the company, preparing all necessary documents, to providing services for after-sales support! Contact us today to arrange a personal meeting in our office or an online consultation.

 

LEGAL SERVICES IN CYPRUS

 

 

ALSO READ:

🔹 Top 5 Reasons Why Larnaca is the Best Place for Investment in Cyprus in 2024

🔹 Why Cyprus is the Best Choice for Business in Europe in 2024

🔹 What is important to consider when buying land in Cyprus: our recommendations

🔹 Real Estate Prices in Cyprus in 2024: Overview and Trends

🔹 Why is it now profitable to invest in land in Cyprus and real estate construction?

🔹 How to register a company in Cyprus

🔹 Taxes in Cyprus

 

Article author

Elena Georghiou Founder and Managing Director
Ukraine
Elena Georghiou – Founder and Managing Director of Feod Group. Has two higher educations: the first at the Odessa State Polytechnic University, majoring in automation and computer engineering (1986) and second in the Moscow State Law Academy, majoring in law (1991). Has work experience in London i...
Elena Georghiou – Founder and Managing Director of Feod Group. Has two higher educations: the first at the Odessa State Polytechnic University, majoring in automation and computer engineering (1986) and second in the Moscow State Law Academy, majoring in law (1991). Has work experience in London immigration law firms. Is a regular participant in seminars and trainings on immigration, corporate and private law of the European Union. Elena Georghiou has more than 25 years of legal experience and heads the specialized Residency and Citizenship practice across European countries, UK and USA advising HNWIs and their families on:
  • immigration planning;
  • consultations on obtaining alternative (second) citizenship;
  • Residency and Citizenship by Investment;
  • business immigration;
  • preparation of appeals, working with complex immigration cases.
She advises individuals and corporate clients for wealth/business structuring and assets protection. Central to her Managerial role in the company she initiated and united high level lawyers and other top professionals around the word in order to provide Feod Group clients with bespoke level of legal and business services word wide, keeping the staff focused on the opportunities and challenges faced by each individual client. Speaks Russian, Ukrainian, English.
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