Okay, do you want to sell property in Cyprus this year?
Many questions have been raised about the property market in Cyprus. One wonders if the real estate boom that we are currently witnessing there is sustainable or not.
There is a lot of talk about the “cash for citizenship” scheme or the Golden Visa scheme. A number of foreign nationals from non-EU countries like China, Indonesia, India, Brazil and Venezuela have taken advantage of the Golden Visa which grants residency permits to anyone who buys property in Cyprus worth 300,000 Euros and so alot of property for sale in Cyprus is being bought this way.
That explains the recent demand for properties here from overseas investors. It helps that Cyprus is a member of the European Union. So a residence in Cyprus gives one the right to travel through all Eurozone nations without a Visa. That’s one of the biggest advantages of moving to Cyprus and getting a residency permit there.
How has this affected the property market in Cyprus? Well, the results have been mixed. Apartment prices have actually fallen in Famagusta and Larnaca and gone up in Nicosia and Paphos – but only marginally.
House prices have gone up in Famagusta, Larnaca and Limassol by 1.0%, 0.7% and 0.3% and down slightly in Paphos and in Nicosia.
To be fair, the property market has been very stable in 2018 so far, far too tepid, one might argue. But this is a good thing. After a decade where property prices went up and down randomly, Cyprus probably needed a year or two of stability, and that’s what we are getting.
There are obvious signs of recovery wherever you want to see. There are massive construction projects in almost all cities. Many new homes are being built, especially to cater to the demand from Golden Visa or investment-for-passport seekers.
How sustainable this is, we will know only a few years from now. Do we have another property bubble in the making? That’s hard to say as of today, and even if there was a bubble, given how stable the property market has been in 2018, we are unlikely to witness any major disturbances at least for another three or four years.
That is why this is a good time to get involved in the property market in Cyprus, either as a buyer or a seller. Almost half of all property purchases in Cyprus that were registered by the Land Registry office here were for those purchased by foreigners.
This indicates that the overseas investors are the driving force of the property market here. Everyone involved in the local real estate market is on the hunt for overseas buyers. Whether it’s a good thing to have an entire real estate market completely dependent on external factors is hard to tell.
What we know for sure that most of the properties sold to overseas investors will remain empty for long periods of the year. They can fall into disrepair and create an image of a ghost town. That is a result that nobody really wants. Still, there is a lot of money to be made from buying or selling properties in Cyprus.