“This revelation comes at a time when the sector is witnessing significant inflows from both institutional and retail investors, driven by the quest for higher returns on investments amidst persistently low deposit interest rates,” the company said. 

Delving into the figures, which were extracted from a pool of over 4,200 real estate listings on INDEX, revealed a sharp disparity in the pricing of new versus pre-owned properties in Larnaca, the company explained. The analysis indicated that the median price per square meter for brand-new real estate stands at €3,619, whereas pre-owned properties come in at €2,289 per square metre. The analysis by INDEX takes into account the 19 per cent VAT for brand-new assets and the 4 per cent Transfer of Title Fees (TTF) for pre-owned. “This substantial 36 per cent discount on pre-owned properties not only positions Larnaca as an attractive investment avenue but also as an ideal locale for those scouting for their next home,” the company said.

Moreover, notable yet lesser differences in new and pre-owned property pricing were also observed in other regions, including Limassol (25 per cent difference), Nicosia (27 per cent), Paphos (27 per cent), and Famagusta (21 per cent). These findings, the report continued, are based on an analysis of 24.773 new properties and 4,539 pre-owned ones, a sample size robust enough to paint a comprehensive picture of the current market landscape. The company said that the “insights provided by INDEX are invaluable, highlighting Larnaca as a rising star in real estate transactions but also emphasizing its unparalleled offerings in terms of investment and residential opportunities, making it the go-to destination for both investors aiming to flip properties for a profit and individuals in pursuit of their dream home”.

Meanwhile, the founder of INDEX, Anton Karbanovich explained that “in recent years, the real estate landscape is evolving, with a burgeoning ‘flipping sector’ making its mark”. “Mirroring trends in the US and central Europe, an increasing number of retail and small investors have started venturing into the realm of buying pre-owned properties, undertaking renovations, and then flipping these assets for a profit,” he added. “INDEX’s data analysis underscores Larnaca’s standout position in this market, especially within the residential real estate segment,” Karbanovich concluded.

The report also said that “as the real estate market continues to evolve, driven by both global trends and local dynamics, Larnaca stands out as the new destination for real estate endeavours”.

Source: Cyprus Mail