What are the Property Trends in Cyprus 2016? Cyprus has always been a popular overseas property destination. Usually, it is the British who buy properties in Cyprus. But now, it does look like the Russians and Chinese buyers have entered the Cyprus property market as well.
Indeed, property sales in Cyprus have increased by almost 20% in 2015, because of more enquiries coming from Russia and China. The regions that registered the highest increase in sales included Larnaca, where property sales rose by 45%, Nicosia at 23%, then Paphos at 14%, and Farnagusta at 12% and finally, Limassol at 6%.
Russians tend of purchase villas in Cyprus and the Chinese prefer to buy apartments. Why are rich Chinese and Russian buyers purchasing properties in Cyprus? That Cyprus is one of the most beautiful countries in the world with picture perfect Mediterranean climate is not the only reason for wealthy individuals to buy property here.
They are also excited by the fact that properties in Cyprus are today available for a real bargain, following the steep decline in prices since the 2008 housing collapse. Property prices in Cyprus are currently almost 50% less than what they were just before the 2008 global housing crisis happened. Russian and Chinese investors are always on the lookout for a safe haven for their investments and Cyprus does provide them with that.
Cyprus has always been one of the top overseas property destinations in Europe and a favourite with those looking to buy a second home or a vacation home. But the fall in Cyprus economy in the aftermath of the 2008 recession was quite brutal. 2011 and 2012 were really terrible years in Cyprus and drove a lot of foreign investors away.
There were other issues as well that put off many foreign investors from buying property in Cyprus – such as the fact that registering title deeds in Cyprus was a nightmare for most foreign nationals. It took 5 to 6 years to get title deeds for new properties in Cyprus, largely because of bureaucratic inefficiency, badly written laws and crazy rules that made no sense whatsoever.
Now, property rights in Cyprus are fairly advanced, and no one is at risk of losing their property. But it’s a tough ask indeed to deal with the Land Registry Office in Cyprus. So there was a large backlog of title deeds in the Land Registry Office and it took homeowners years before they could sell their property in Cyprus.
While this wasn’t an issue for those who had no intention of selling their Cyprus houses, those who wanted to sell and get out of the country fast, for whatever reason, were unable to do so because of the laws in Cyprus.
Now, however, things have changed. The government of Cyprus has introduced new laws that have reduced the waiting period for the title deeds to much less than they were in the past. It is now possible to get the title deeds to your property in Cyprus in weeks, if not days.
The transfer tax on property sales has been cut down by 50% on all transactions. The transfer tax on property sales has been fixed at 3 to 8%, depending on the size of the property. The immovable property tax and the inheritance tax have been abolished as well. So, no tax will be levied when a property changes hands from a parent to a child.