“Book a viewing trip to Cyprus” will be at the top of your list of New Year’s resolutions once you’ve read our 2017 review of the residential property market there. Rising property prices, increased rental values, golden visa schemes… book those flights now!
Confidence in the UK housing market has slipped to its lowest level in five years, according to a recent survey by Halifax. One in five British adults surveyed by the mortgage lender believes house prices will drop over the next 12 months – the weakest reading of consumer expectations since October 2012.
Confidence in the UK housing market has slipped to its lowest level in five years, according to a recent survey by Halifax. One in five British adults surveyed by the mortgage lender believes house prices will drop over the next 12 months – the weakest reading of consumer expectations since October 2012. Head to the other side of Europe and we find a very different scenario. To say 2017 has been a good year for the property market in Cyprus is an understatement. Overseas buyers look like they will continue to benefit from favourable conditions. Here a five reasons for festive cheer as we look back on a positive 12 months in the Cyprus residential property market.
The price of residential property has increased on both a quarterly and an annual basis.
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1. Property prices
The price of residential property has increased on both a quarterly (1.6% apartments and 1.5% houses) and an annual (6.2% apartments and 4.7% houses) basis. The biggest rise was found in Limassol with a quarterly increase of 3.8% for both types of property, according to the 31st edition of the RICS’ Cyprus Property Price Index. The long-term investment potential of Cyprus is attracting buyers deciding where in the Mediterranean they should purchase.
2. Rental values
Rental values have increased on both a quarterly (3% apartments and 1% houses) and an annual (8.3% apartments and 10.2% houses) basis too. According to the Property Price Index, rental values have increased across the island, particularly in Limassol, Nicosia and Larnaca. Take advantage of the island’s popularity with tourists – arrivals are expected to exceed 3.6m in 2017 – and your holiday home could pay for itself when you’re not in residence.
If this has inspired you to buy in Cyprus in the next few months, call our friendly Cyprus Resource Team on 020 7898 0549 or email [email protected]. If you are ready to buy we can put you in touch with a currency specialist, lawyer and estate agent.
3. Overseas buyers
A sharp rise in the sale of residential properties to foreign buyers in Cyprus saw them purchase 1,840 homes during the first ten months of 2017 – an increase of 45% compared with the same period last year. Expat favourite Paphos remains the most popular district (655 properties), followed by Limassol (626). You could be adding to these impressive figures in 2018 and joining an established community of British expats and holiday home owners in Cyprus.
The enduring popularity of Paphos has driven an increase in demand from overseas buyers in Cyprus.
4. New developments
This increase in property sales has triggered an increase in building, with the number of permits issued for the construction of new homes rising by 35% to 3,413 during the first nine months of the year.One such development is the addition of three more high-rise residential towers, to add to Limassol’s ever-growing skyline. Christened Trilogy, the 39, 37 and 36 floor towers are set to be built on a seafront plot next to Enaerios pier, and are expected to be completed by 2023. Can you see yourself taking in sea views from the balcony of your very own modern apartment in one of the most up-and-coming towns in Europe?
There has been a sharp rise in the sale of residential properties to foreign buyers in Cyprus.
5. Citizenship-by-investment programme
Foreign investment is at the heart of the government’s strategy to grow the economy, and the citizenship-by-investment programme (golden visa) is key to this. This enables you and your family to obtain permanent residency or even citizenship via private investment in residential property projects in a relatively short period. Here’s how it works.
Golden Visa scheme for permanent residency:
– Investment of €300,000
– Simple and fast process
– Visit required once every two years to maintain residency
– Full family residency granted (grandparents, parents and dependent children)
– Investment into new property only
– Travel throughout the EU
Golden Visa scheme for citizenship:
– Investment of €2 million- No residency requirements
– Become full EU citizen
– Simple and fast process (European passport in two months)
– Full family citizenship granted (children up to 28)
Over €4 billion has been invested in Cyprus over the last four years through the golden visa programmes, helping to sustain property prices in the long run.
