Cyprus Economy & The Property Market
The Cypriot economy has experienced positive growth rates in 2016 and the expectations are that this trend will continue in 2017 which is excellent news for the property market here. Services including tourism, professional services, shipping and real estate, considered as the backbone of the Cypriot economy, are growing, all contributing significantly to the country’s GDP.
One of the Largest increases of the decade (43%) was noted in the total property sales contracts submitted at the Land Registry in 2016, with December 2016 exhibiting an increase of 121% compared to December 2015. This is an important indicator that confidence in the real estate market is improving.
The interest of foreign investors in Cyprus’ real estate market keeps growing, since over one quarter of the deeds of sale submitted in 2016 involve overseas buyers. This is primarily due to the Cypriot government’s initiative regarding the Cypriot Citizenship Program, the permanent residency program as well as the various tax incentives offered.
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, licensed 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, which is attracting purchasers from countries as far afield as Russia, Australia, China, America, The Middle Ease and Scandinavia. The properties available range from cosy one bedroom apartments to grandiose six bedroom villas.
Local Property Prices
The average house prices in Cyprus for the first three quarters in 2016 when compared with the 2015 yearly average, indicates a 2% increase, reaching a value of €332,155.
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 mortgages and loans once again. However, it is still difficult to achieve a Loan to Value of more than 70%. Your lawyer or agent may be able to advise.
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 part of the adventure.
We recommend Fonterra Estates Ltd as they have their own, in house legal team, have excellent knowledge of the resort and have over 30 years’ experience in real estate.
Contact them or us if you wish to discuss any of your property needs. We can point you towards the best buys and give you the low down of the property market on the resort.