Cyprus economy & the property market
The property market, particularly the high end, is continuing to experience steady growth as Cyprus develops into a highly sought-after destination with marinas, golf courses, high rise towers, and a resort casino in Limassol. The island remains an attractive destination for the purchase of property by foreigners, combining the advantages offered by an EU member state and member of the Eurozone, with those of security, low crime rate, high quality of life and superb climate, while the development of quality properties creates prospects for increased real estate demand, both domestically and internationally.
Additionally, steady growth rates, various tax incentives, the Cyprus Investment Programme, the new tax residency scheme and the prospects emerging from the discovery of natural gas, create a very positive scenario for the development of the real estate sector over the next few years. Cyprus has also successfully been established as a trustworthy, secure and friendly business destination.
During the first half of 2019, property sales in Cyprus rose by 24.4% to 5,560 units from a year earlier, following annual rises of 5.8% in 2018 as Cyprus is seen as a safe tourist destination – and safe haven for investors. Over the period, domestic buyers accounted for about 55% of the total sales while overseas buyers (both EU and non-EU citizens) accounted for the remaining 45%.
An improved economic outlook and steady increase in tourism continues to generate price increases in the property market. Over the last year, prices for apartments rose by 7.4%. This trend was evident in Aphrodite Hills, with strong sales in all categories of properties – buyers were mainly investors, seeing the Resort as a solid area for growth and investment income.
We are optimistic about the ongoing momentum overall, and confident that Aphrodite Hills will continue to attract savvy buyers from all corners of the globe, including locals seeking a solid investment. The resort attracts because it offers far more than a property, enticing those who want to enjoy the high end Mediterranean lifestyle but also benefit from the security of favourable rental yields to help cover costs of owning a property.
Government Incentives and Title Deeds
Government incentives means that there will be no transfer fees for property purchases subject to VAT, while for other purchases, transfer fees will be reduced to 50%, as estimated based on the provisions of the current legislation. Moreover, improvements in developers issuing title deeds in the name of purchasers who have paid the amount due in full to the land developer, has enhanced the credibility of the Cypriot real estate market. Title deeds are available for most properties for sale here on Aphrodite Hills.
Buying your dream property in Cyprus can be a simple process but it is important to work with a reputable, licenced property company that have good local knowledge. The Cyprus land registry system, which was set up by the British, includes safeguards to protect you and your purchase. The property contract will be in English and if you have any queries, ask your lawyer for clarification; lawyers tend not to work on an hourly rate here so feel free to ask questions if you need to!
When it comes to location, there is nowhere in Cyprus like Aphrodite Hills. There are many excellent investment opportunities to be had on resort by purchasing a new or resale properties on resort.
The new build properties are in demand as they offer wonderful views and a high spec build, in premium locations but you do end up paying a premium for these.
Resale properties are available in some of the most sought after locations on resort that provide the perfect opportunity to renovate to your own taste or style. Thanks to recent planning laws that encourage such activities, you are able to extend properties too, adding extra bedrooms and living space if the covered co-efficient allows, increasing the value of the property in the process. We have had the privilege of working on many such projects in recent years and happy to share these with you.
All property owners on the Resort pay a small annual ‘resort charge’ which includes the security cover and maintenance of the sewerage system. The ‘village charge’ is only for properties set within the villages of the resort, and covers things like pool maintenance, external decoration and gardening of common areas etc. The ‘Kouklia council charge’ is for refuse collection, lighting, resort cleaning and other municipal costs.
Finally, there is an Immovable Property Tax which is paid annually to central government. All these charges are surprisingly inexpensive.
The Cyprus banking system has gone through a period of transformation and most high street banks are offering low interest mortgages and loans once again. However, it is still difficult to achieve a Loan to Value of more than 70%. We have contacts at the local banks if you need further information or a referral.
Holiday rentals on the Resort depend on the size, location and specification of the property. Holiday rentals can be achieved throughout the year, with the busiest time being during European school holidays and peak from July – August in high summer. These are exciting times for the Cyprus property market, specifically on Aphrodite Hills with good investment opportunities coming up all of the time. If you enjoy the lifestyle here on the resort, why not invest in a property and become a part of the adventure? Our MD, Mark would be happy to sit down and have a coffee with you to provide you with further information on property renovation/investment on resort and the rental opportunities if you are interested.
For property sales, we recommend Galaxia Estates as they have excellent knowledge of the resort and over 30 years’ experience in real estate.
Feel free to contact Martin on +357 99 813 821 if you wish to discuss any of your property sales needs. He can point you towards the best buys and give you the latest low down of the property market on the resort and the surrounding area.