Cyprus Investment Property Hotspots | Cyprus Property News

Cyrpus Investment Property Hotspot | Invest in Cyprus

Post-EU membership in 2004, Cyprus has grown from strength to strength in terms of real estate development. The investment-friendly laws, hastened by the EU membership, have contributed a lot towards the newfound status of ‘Investment Property Hotspot’ for Cyprus.

The country, undoubtedly, had immense tourism potential. Cyprus is the third largest island in the Mediterranean Sea, and the inviting Mediterranean climate makes it an ideal holiday destination for the European travellers. Year-round sunshine on the pristine beaches of Cyprus is enough to lure in visitors by the hordes. The EU membership has only helped the country to exploit its vast potential as an ideal getaway zone.

So, besides tourism, what other factors are responsible for making Cyprus an investment property hotspot?

To start with, we focus on the prices of real estate in Cyprus. Unlike UK, the property prices in Cyprus are extremely affordable. Moreover, the appreciation of capital wealth is also about 20%. This fast growth has invited the attention of both short-term and long-term property investors in the country. The experts are of the opinion that the trend will continue for the next at least 4-5 years. The short-term investors buy property in Cyprus and sell within a year or so, reaping a cool 20%-25% return on their investments. The long-term investors usually buy the property in Cyprus to rent it out, and enjoy handsome regular income. The rental income is often enough to pay the instalment for UK mortgage, if you’ve financed your property.

Tourism is also directly responsible for enhanced demand for rental property in the country. The coastal towns are especially in great demand for vacation properties that are available on rent. By investing in such holiday homes, villas and mansions that are close to one of the tourist hotspots, you are virtually assured of a great regular rental income. Moreover, you can also use these properties as a second home, so that when you plan a trip to Cyprus with your loved ones, you won’t have to worry about the arrangement and finances for your stay.

Riding on tourism, finance, and services wave, Cypriot economy is quite strong. This robust economic health of the country also helps in instilling much-needed confidence in the existing and potential real estate investors in the country.

This ancient island also holds a fascinating historical significance. The country’s history dates back to Neolithic times. The Greek goddess of love, Aphrodite, is also believed to have born in Paphos, Cyprus. From Alexander, The Great to Cleopatra, Cyprus has fascinated some of the most remarkable personalities ever to have walked on Earth. Greeks, Turks, and Egyptians have tried to establish their rule on this island nation, but every time, Cyprus emerged stronger and better prepared to nullify their evil designs. These constant attacks from foreign forces have left Cyprus a culturally rich country.

The Cypriot government has adopted some lucrative policies to attract more investments in real estate from all over the world. For instance, the pension income in the country is taxed at a mere 5%. This, in turn, creates an immense demand for re-sale properties and long-term rental properties. The tax rates pertaining to property transactions in Cyprus are also quite low. For instance, the property transfer tax ranges from 3% to 5% depending on the property price, stamp duty ranges from 1.5% to 2%, VAT on new constructions is 15%, etc. The low cost of living in the country ensures relatively less lawyer’s fee.

Up until 2004, Cyprus had a turbulent territorial dispute with Turkish Republic of Northern Cyprus (TRNC). This was primarily responsible for sluggish real estate market till that time. However, with EU membership in the kitty, this dispute has lost its sting and near resolution. Gone are the days of violence between Greek and Turkish Cypriots. Now, though TRNC dispute is unresolved, the EU has mandated equal applicability of EU passport for citizens of both Republic of Cyprus and TRNC.

In other words, the country is prospering and on a fast-track mode to all-round development. The low-cost airlines are granting Cyprus a better and an affordable connectivity with major European cities. The tourists are teeming in, and along side the investors are making a beeline for the Cypriot property. The present as well as the projections indeed, offer a bullish trend in the Cyprus property market.

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