Which area of Cyprus is optimal for real estate flipping?

We scrutinized 50,000 listings within our database with the aim of identifying the prime location in Cyprus for purchasing, renovating, and reselling properties to maximize profits.

According to a recent extensive analysis, Larnaca has emerged as the primary hotspot for investors and prospective homeowners seeking profitable opportunities in the real estate market. This discovery coincides with a period marked by substantial inflows from both institutional and individual investors, motivated by the pursuit of elevated returns on investments in light of consistently low deposit interest rates.

A thorough examination of the data, drawn from a pool of over 4,200 real estate listings on INDEX, highlights a notable contrast in pricing between new and pre-owned properties in Larnaca. The median price per square meter for newly constructed real estate stands at €3,619, while pre-owned properties are priced at €2,289 per square meter. INDEX’s analysis factors in the 19% value-added tax (VAT) for new properties and the 4% Transfer of Title Fees (TTF) for pre-owned ones. This substantial 36% discount on pre-owned properties not only positions Larnaca as an appealing investment option but also as an ideal destination for those in search of their next residence.

Significant yet comparatively smaller disparities in pricing between new and pre-owned properties were also noted in other regions, such as Limassol (25% difference), Nicosia (27%), Paphos (27%), and Famagusta (21%). These conclusions stem from an analysis of 24,773 new properties and 4,539 pre-owned ones, representing a substantial sample size capable of providing a comprehensive overview of the current market dynamics.

The insights offered by INDEX are invaluable, showcasing Larnaca as an emerging leader in real estate transactions while underscoring its unmatched offerings in terms of investment and residential prospects. This positions it as the preferred destination for both investors seeking to profit from property flipping and individuals in search of their ideal home.

Anton Karbanovich, the founder of INDEX, elaborates: “In recent years, we’ve witnessed a shift in the real estate landscape, with a growing ‘flipping sector’ gaining prominence. Reflecting trends seen in the US and Central Europe, more retail and small-scale investors are entering the realm of purchasing pre-owned properties, renovating them, and then selling for a profit. INDEX’s data analysis highlights Larnaca’s exceptional position in this market, particularly within the residential real estate sector.”

As the real estate market evolves, influenced by global trends and local dynamics, Larnaca emerges as the premier destination for real estate endeavors. Through its data and analysis, INDEX uncovers hidden opportunities within the dynamic real estate landscape, establishing itself as an indispensable resource for both investors and homebuyers.