We observed a strong trend in 2022, with new sales increasing by 35% in deposited real estate sales contracts. At the same time, it’s important to take note of the roughly 100% rise in overseas buyers from the prior year.
Despite the market’s general issues, Cyprus doesn’t appear to have been significantly impacted. Except for agricultural land in some locations, market values appear to be remaining steady despite rising loan interest rates, skyrocketing construction costs, the war in Ukraine, and other factors.
When it comes to the number of units sold, sales to international markets account for a relatively modest portion of all sales, but when it comes to the total value of all sales, they account for more than 20% of the total.
Along with our EU membership and the tax system that exists in Cyprus, these factors are big draws.
In addition to the increase in global demand, bank employees and others received millions in redundancy and compensation payments in 2022. After purchasing new automobiles, these individuals invested their money in the local real estate market.
However, the market is supported by international demand. IT corporations and shipping companies have both expressed interest in establishing offices here. The Kassatly Group from Lebanon just made the announcement that it will move here. Israel has also expressed a great deal of interest, which extends from the purchase of neighborhood hospitals to extensive residential and commercial construction, including the Larnaca port.
We occasionally get the impression that the international market will swoop in and buy up Cyprus, which could perhaps be bad for the residents. Although we have nothing against international sales, we do wonder how things will be in, say, five years and, more significantly, how they will affect the local populace.
Increasing rents, inaccessible student housing for locals, and even the expulsion of international students are already a reality.
The market in Limassol is benefiting the most because foreign demand there accounts for almost 70% of all demand, but adverse impacts on the locals are already being seen.
Whatever the government tries to do to address the housing crisis, it simply isn’t enough.
The year 2023 will maintain its active pace, particularly in urban areas.
We assume that the Famagusta region will increase by 5%, Limassol will increase by around 5% over the previous year, Nicosia will increase by about 3%, Larnaca will increase by about 1-2%, Paphos will increase by about 5%, and so on.
It is interesting to note that the Central Bank of Cyprus index notes that rising building costs, inflation, and rising interest rates have a negative impact on real estate but do not always result in lower demand or higher prices. The various ongoing infrastructure projects and the international demand appear to operate as a shield against the unfavorable elements.
Guide To Purchasing Property In Cyprus
It’s crucial to conduct thorough research and be aware of the various considerations that must be made when purchasing real estate in Cyprus. The important factors to take into account while buying property in Cyprus are summarized in this guide.
Budget
Establishing and adhering to a budget is essential before shopping for a home in Cyprus. Calculate how much you can afford realistically by taking into account your income and costs. In order to buy the house, you might need to obtain a mortgage. It is also crucial to take into account any other expenses related to the acquisition, such as taxes, legal fees, and property inspections.
Location
Another crucial issue to take into account is the property’s location. Consider how close something is to a store, a school, a transit station, and other facilities. Take into account the regional weather and topography as well. Exist any possible dangers nearby, such as landslides or flooding?
Title Deeds
To make sure that everything is in order and that there are no unpaid debts or liens on the property, verify the title records of the property before making a purchase.
Legal Advice
Before buying any property in Cyprus, it is crucial to get legal counsel. You can make informed decisions and have a better understanding of the procedure with the aid of a lawyer.
Taxes
Recognize any potential tax repercussions connected to the property you are interested in by being familiar with Cyprus’s tax system. The taxes that could be charged include capital gains tax, property tax, transfer fees, and stamp duty.
Financing
Research the advantages and disadvantages of the various funding solutions accessible in Cyprus. You might be able to obtain a loan from a foreign lender or a mortgage from a local bank, for instance.
Cryptocurrency
As they grow in popularity around the world, cryptocurrencies are a new development that can be easily incorporated into real estate transactions. The real estate industry had to change in order for cryptocurrency sales to be possible. The buying and selling of properties is one of the most crucial economic pillars of the nation, and it will always be one of the most crucial pillars. It was therefore necessary and required to adjust. When investing in cryptocurrencies, the most crucial thing to keep in mind is to think about your risk.
It appears that Cyprus is in a better position than other European nations when it comes to the issue of whether bitcoin is taxable in Cyprus and if you must pay taxes on exchanging cryptocurrency. The explanation is that funds from Initial Coin Offerings (I.C.O.) are subject to taxes in Cyprus since they are regarded as taxable income.
Property Inspections
To make sure the property is in good shape and there are no hidden faults, think about having a property inspection done before you make a purchase. An in-depth evaluation of the property, including any potential safety hazards, will be given by a property inspection.
Properties For Sale In Cyprus
It is now time to start looking for properties for sale in Cyprus after taking all of the aforementioned factors into consideration. Real estate brokers’ and property developers’ websites are only two examples of the many that offer property search functionality. Additionally, newspapers and periodicals may contain listings for real estate.
Conclusion
There are several things to think about while buying property in Cyprus. Set a budget and adhere to it. Research the area where the property is located. Check the title documents. Get legal counsel. Become familiar with the tax system. Research financing alternatives. Get a property inspection. Once you have considered each of these elements, you may begin browsing for properties in Cyprus that are for sale.
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