If you are considering investing in Cyprus Real Estate, you are probably wondering how the process of buying or selling property works. Cyprus is a free market economy impacted by multiple developments and trends, including the COVID-19 pandemic. But while the country has been resilient to other recent geopolitical events, it does have its challenges. So here are some crucial points to consider. Before you buy property in Cyprus, you should consider the following points.
Cyprus Is a Developed Free Market Economy
The economy of Cyprus is open to the world and largely dependent on imports. Its services sector accounts for more than four-fifths of its GDP. Its most important services include tourism, finance, shipping, and real estate. Cyprus has been a member of the EU since 2004, and its currency, the euro, was adopted as its national currency in January 2008.
It Has Been Affected by Multiple Trends and Developments
Various trends and developments have had a direct impact on the market in Cyprus. Cyprus’s low-interest rates and availability of finance have facilitated the purchase of properties, with multiple government schemes aimed at encouraging home ownership outside urban centers. In addition, Cyprus’s recently-ended Investment Programme has led to the recovery of a substantial volume of real estate that was once considered unmarketable by banking institutions. The Land Registry has classed this property as non-performing, meaning that real estate transactions involving mortgages are favored by low stamp duty and land registry transfer fees.
It Has Been Resilient to the COVID-19 Pandemic
Despite the recent onset of the COVID-19 pandemic, Cyprus Real Estate has remained remarkably resilient to the event. While halted many transactions were due to the travel ban, others are still expected to be completed by the first half of 2020. The absence of mass flight bans has also increased demand in the local market, and additional incentives and targeted measures have been implemented to support tourism and property investors.
It Has Been Affected by Geopolitical Events
In the past, Cyprus has been a battlefield between the Western and Eastern worlds, and it entered the EU as a divided country. Since then, geopolitical events have plagued the island, and war and diplomacy have failed to bring a solution. Despite the country’s political future, Cyprus’s recent history has highlighted its geo-strategic importance. Cyprus Properties sits in the Hinterland, a string of land between the seas and the internal Eurasian land mass.
It Is an Attractive Second Home For Brits
Many British property buyers are looking for their dream second home abroad, and Cyprus is no exception. There are 400,000 British properties abroad, with 56% of them located in France or Spain. Cyprus has received British investment since 2002 but will only account for 3% of these in the future. Morocco and Bulgaria will increase their share to 6% and 2%, respectively. British property buyers are primarily interested in investing in property abroad as an investment, but 32% are also interested in living in the property at least once a year.
It Has a Stable Real Estate Market
While the housing market in Cyprus has shown slight signs of decline after the collapse of the offshore banking system and the global recession, the country’s economy is still anchored on real estate. According to official figures, sales have increased by more than 36% YOY in 2016 and another 25% YOY in 2017. In 2017, the Department of Lands and Surveys recorded 8,734 real estate transactions. Despite these lows, the market in Cyprus remains one of the most stable in Europe.
