Whether your dream home is a luxury villa, a well appointed town house, a holiday apartment or a rural property, the Cyprus real estate market is strong and widely considered to be a solid investment.
There is no shortage of good value property in several areas, which include hotspots such as Paphos and Limassol. A three-bedroom detached villa with a pool currently costs around £250,000 in a prime location, while this amount would probably only stretch to a large two-bedroom apartment in the south of France.
Cyprus property continues to grow in global popularity as it is an area of great natural beauty with a warm climate and some of the best beaches you will find in the Mediterranean. Other factors that make buyers choose Cyprus property above many other locations is the security offered by Cyprus real estate investment and the country’s general legal systems which are akin to European standards.
As an investment location, Cyprus offers a unique opportunity while its realatively new EU membership offers the property purchaser some excellent tax benefits, low property prices and many more advantages within a rapidly growing property market. Cyprus is experiencing an increase in tourism and with this growth comes a proportional increase in demand for Cyprus property, creating a booming “Buy-to-Let” market. Investors see property in Cyprus as a very stable investment while prices increase at a steady pace.
Cyprus Property Market Overview
Spanish and other traditional European holiday hot spots are reliably increasing in price, showing great profits for those buying investment property in these areas. Some investors, however, are looking to new locations for greater financial return on investment.
A new member of the EU, with stunning scenery, beautiful beaches, very strong tourist industry and property prices far more competitive than in other EU countries, Cyprus is is widely regarded as a lucrative world property market.
Cyprus property greatly appeals to the UK market due to the fact that Cyprus uses the English legal system and almost all residents speak English, avoiding many language barriers that exist when purchasing property in other locations. The Cyprus property market is supported by a very stable economy and general infrastructure and in Cyprus a long established and transparent property buying system offers Cyprus property buyers a safe and secure property purchase.
Cyprus Property Investment
Cyprus property is especially interesting to UK property investors, looking for a good, safe return on investment from their property purchase. The property market in Cyprus is currently very strong and an imminent boom in the market is now strongly predicted.
In addition, a new international airport, a marina and many new developments are all planned for completion in 2008. A wide range of new facilities are planned for Cyprus, including, in southern Cyprus, a brand new hospital, a university, an international business centre, as well as a large leisure and cultural centre. What’s more, the government has also launched a new golf policy which will increase the number of 18-hole golf courses on the island from 3 to 14. These factors, along with continued property development all over the island, indicate significant economic growth, which can only be encouraging signs of growth to foreign investors.
Since its joining of the EU in 2004, Cyprus has enjoyed capital growth of 30-40% while property prices remain considerably lower (up to 30% lower) than in France or Spain. Former property purchase restrictions on foreigners were lifted and deposit levels have fallen to as low as 10-15% in some areas. Swiss franc mortgages are now available with rates of just 3.25%, making borrowing more affordable than ever.
Reasons Why Property in Cyprus is a Good Investment
- The property market is one of the fastest growing in European Union. Prices are increasing by an annual average of 20%.
- Property prices are still far lower than in many other European countries.
- Increase in the number of golf properties available. Golf property prices fetch up to 40% more.
- Comparatively low tax rate, including a Double Tax Treaty with the UK.
- Capital Gains Tax of only 20% and Corporation Tax for Cypriot limited companies (through which you can own your property) at only 10%.
- UK pensions can be received tax free in Cyprus.
- Foreign residents permanently residing in Cyprus pay only a 5% flat rate of income tax.
- 340 days of sunshine a year make it a comfortable and enjoyable place to live.
- High standard of living, with good facilities, including top class golf courses.
- Low cost of living.
- Comparatively low crime rate and friendly people.
- Excellent medical facilities, education and offshore business advantages.
- Tourism is predicted to grow by 4.6% over the next 10 years, contributing some 13.9% to the country’s GDP by 2014
- British based legal system, where English speaking lawyers abound.
- British based banking system, making choosing mortgages and managing your money similar to back home.
- Adoption of the Euro in 2008. Very efficient land registry with straightforward and well administered procedures.
Homebuyers in Cyprus
Cyprus has long held many attractions for British retirees and holiday makers alike. The warm climate, beautiful beaches, countryside and sedate lifestyle, as well as great tax benefits for older folk, make it an ideal location.
North Cyprus Property
Property in the North of Cyprus has become the subject of many international property investors’ conversations of late. North Cyprus property offers the property investor excellent value for money with prices far lower than prices in the South. Purchasers include serious property investors looking for quick returns on highly sought after off-plan deals, or buy-to-let purchases in stable tourist destinations.
Cyprus Property Hotspots
Most people looking to purchase property in Cyprus search in the East coast region, namely the town of Dherynia. The region of Nicosia and Ayios Pavlos are also very popular with foreign purchasers. North Cyprus currently promises to be a solid investment and is highly popular as an intelligent, though potentially riskier investment opportunity.