After a long time, investors are feeling pretty confident about the property market in Cyprus. There is plenty of money to be made whether you’re planning to buy or sell property in Cyprus.
Cyprus has finally come out of the economic recession precipitated by the 2008 housing crash. It was forced to enter into a bail-out program because of the government’s failure to meet its obligations to creditors.
Finally, the national economy is on track, says Nigel Howarth, a journalist based out of Cyprus. , “Things are definitely better, the economy has improved. Cyprus is considered a safe destination, and so it does well with tourism.”
What about the property market? Well, things look much better than they have for a long, long time. Apartment prices have gone up by 7.4 percent this year, which is impressive.
This is different from the early 2000s, when Cyprus first became a member of the EU. Back then, there weren’t too many luxury properties or expensive properties in Cyprus. The property prices here were really low, low enough to attract investors from all over the world.
But these days, the Government of Cyprus does not want to attract just about anyone. They only want rich, high net worth individuals to invest in the country. They have introduced measures like the Golden Visa.
The Golden Visa is a very interesting scheme that has led to an influx of Chinese Russian, Brazilian and South African investors to Cyprus. Basically, the government promises residency permits to non EU nationals who make property purchase of €300,000 in Cyprus.
Investors must guarantee not to sell the property for 3 years after the purchase. In addition to that, if they make an investment of €2 million, they can qualify for an EU passport.
This scheme has already attracted investments worth €4 billion in Cyprus. This is an indication of its popularity. “A lot of development is targeting well-heeled, high net worth buyers from overseas. More foreigners than Cypriots have bought property in the last year,” Mr. Howarth adds.
Some places in Cyprus have really taken off. Limassol, for example, is today described as the Manhattan of the Mediterranean. Properties here are worth quite a lot, according to real estate developer, Michalis Hadjipanayiotou.
“Limassol has changed dramatically in the past few years. Some people say it’s no longer Cyprus, but Limassol still has a nice old town, the sea, and 300 days of sun,” Mr. Hadjipanayiotou says in an interview with the London-based newspaper, The Telegraph.
Foreign investors are attracted by the low tax rates in Cyprus, among the lowest in Europe. The first €19,500 of any income is tax free in Cyprus. For pensioners, anything below €3,450 is tax free and anything above is taxed at only 5 percent.
Another real estate developer, Nikiforos Pampakas, talks about the need to build new properties in Cyprus to cater to the rising demand from investors. “We need expansion. International investors want it, and locals now realise the benefits. Cyprus feels confident, it’s evolved. It offers the whole package to investors looking for a nice lifestyle,” Mr. Pampakas says.
Clearly, things are on the move in Cyprus and this is good news for you if you are trying to sell your property there. You should be able to get a pretty good price for it.