“Prices are still considerably lower than in France or Spain - a three-bedroom detached villa with a private pool would currently set you back around £250,000 in a quality location, which would probably only stretch to a large two-bedroom apartment in the South of France. Capital growth is expected to continue at a high level for the foreseeable future due to interest from buyers all over Europe and an undersupply of property.”
British nationals living in Cyprus account for 1.5% of the total population, with British retirees benefiting from being able to draw their pension without paying UK withholding tax, at a flat rate of 5%.
The most popular destination for tourists and homebuyers is Paphos, say Assetz, which offers stunning sea views, a good infrastructure and a year-round tourist industry. More ‘up and coming’ areas include Polis and Larnaca, both of which enjoy lower prices than Paphos with high capital growth expected as tourists look further afield, towards traditional Cypriot villages.
Although the process of buying property in Cyprus is fairly straightforward, Stuart Law advises purchasers of a potential pitfall: “There is a ‘sixty day rule’ for registering land purchases in Cyprus when buying off plan. It is essential for the buyer’s lawyer to register the purchase within sixty days in order to preserve the purchaser’s legal rights over the land on which the building will sit. If this is not done, the land remains the property of the developer until after the development is completed or beyond.”
“I would also warn investors to limit their property investments for the time being to Southern Cyprus," adds Mr Law. "Since restrictions on movement and trade in the north were lifted when Cyprus joined the EU last year, many Greek Cypriots have returned to land they lost and are claiming restitution or negotiation with one particular high-profile court case in the papers just last week. For this reason I would not advocate buying in the North until these issues have been resolved.”
