House prices increasing in Cyprus

Cyprus is enjoying a long period of gentle house price rises, and the growth seems to be accelerating. A continued rise in house prices for the foreseeable future seems likely, and analysts rule out any hint of a price bubble. House prices rose 8.02% y-o-y to June 2007, after a 6.56% rise in 2006, and a 2.20% rise in 2005
Liberalization of the financial sector, a decrease in interest rates, and increased demand for higher quality housing and second homes, and the introduction of VAT on the sale of new property are the main drivers for the recent price increases. If the Government goes ahead with its plan to introduce VAT on land sales in 2008, further price increases are anticipated.

EU nationals who are resident in Cyprus may own as much property as they wish. Non-resident EU nationals may own as much land as they wish, but if they wish to buy any other sort of property, ownership is restricted to one house or one apartment for which approval from the ‘Council of Ministers’ is needed. Regardless of their residency status, nationals of non-EU countries must seek the approval of the Council of Ministers before they can own any type of immovable property. Furthermore, unless there are exceptional circumstances, their ownership will be limited to: an apartment, a house, a building plot or land up to approximately three donums (4,014 sq.m.).

Much of the property market in Paphos, one of the most favoured areas, is driven by British buyers. Owners wishing to rent their property to the tourist market should seek a permit from the Cyprus Tourism Organisation.

More of the latest overseas property investment news from Thomson OPI.

See all news here

View previous investment news in our news archive.