Why property in Cyprus begins to re-emerge from downturn

After several difficult years,
there are signs that the property market in Cyprus is starting to recover.  That’s the view of a leading Cyprus
property expert who believes that prices in the country are beginning to rise.

Keep reading to learn more about
the Cyprus property market and some invaluable information you’ll need to know
if you’re thinking of buying a home in Cyprus.

Cyprus property beginning to re-emerge

The New York Times reports that in the town of Paphos, prices fell as
much as 50 percent during the downturn while values in Nicosia, the capital,
where 90 percent of buyers are Cypriots, fell very little.  This shows that overseas buyers have a
significant impact on property prices in the country.

Nick Marr, director of Cyprus
property specialists Homes Go Fast, said: “In some Cypriot cities, foreign
buyers constitute around three quarters of the market, so the global financial
crisis had a huge impact on values in some areas.”

Mike Braunholtz, sales director
with the agency Prestige Property Group, said: “The market is beginning to
re-emerge now,” adding that prices have regained about half of what they lost,
depending on the area.

Buying property in Cyprus

If you’re thinking of buying in
Cyprus, Homes Go Fast recommend that you appoint an independent lawyer to help
you with title issues and other possible problems.

There are several closing fees
that you should be aware of.  There
is a 17 per cent value added tax on most houses that were built after May 2004
which is reduced to 5 per cent for first time purchases.  You’ll also pay a transfer fee of 8 per
cent (for homes over around €171,000) and a small stamp duty.

If you’re not buying using cash,
financing is available from Cypriot banks.  You can expect to be charged an interest rate of around 6
per cent.

Author: Nick
Marr