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Anatoliy 1
New Member
It seems that Cyprus real estate has stopped falling. Is it the right time to buy?
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George Kachmazov
New Member
In general, Cyprus is a great place to buy property if you want to live there or you want to buy European passport fast (it takes 6 month),but it may not be ideal for investors.
1) Under Cyprus’ citizenship-for-investment program, investors have to retain ownership of their qualifying properties for at least three years. In March 2014, the investment threshold was lowered, ushering in a lot of new property buyers who wanted passports. Now that three years have passed, a lot of people who benefitted from the program want to sell their investment properties. The number of people who will try to sell their citizenship-for-investment properties will probably grow proportionally to the number of people who bought passports a few years ago, in my opinion. This process could temper the rise of real estate prices in the country. And if that trend coincides with the forecasted rise of mortgage rates in Europe, the prices may even decline.
2) For the last few years developers have been increasing construction volumes, which might lead to an overproduction of meters. Demand might exceed supply significantly as a lot of people buy properties not for living but for Cypriot passports only.
For this reason, I recommend exercising extreme caution in the Cypriot real estate market (unless you just love Cyprus and want to make a second home for yourself there).
1) Under Cyprus’ citizenship-for-investment program, investors have to retain ownership of their qualifying properties for at least three years. In March 2014, the investment threshold was lowered, ushering in a lot of new property buyers who wanted passports. Now that three years have passed, a lot of people who benefitted from the program want to sell their investment properties. The number of people who will try to sell their citizenship-for-investment properties will probably grow proportionally to the number of people who bought passports a few years ago, in my opinion. This process could temper the rise of real estate prices in the country. And if that trend coincides with the forecasted rise of mortgage rates in Europe, the prices may even decline.
2) For the last few years developers have been increasing construction volumes, which might lead to an overproduction of meters. Demand might exceed supply significantly as a lot of people buy properties not for living but for Cypriot passports only.
For this reason, I recommend exercising extreme caution in the Cypriot real estate market (unless you just love Cyprus and want to make a second home for yourself there).
Veronica
Administrator
This will not affect the lower end of properties as the citizenship for investment programme requires 2 million investment (reduced from 2.5 million)
The vast majority of properties are cheaper apartments and modest villas and town houses.
This range of properties now seems to have levelled out in price.
The vast majority of properties are cheaper apartments and modest villas and town houses.
This range of properties now seems to have levelled out in price.
Veronica
Administrator
At todays rate 2 million euros equates to 1,727,906.36 GBP.
It is possible to find a nice 2 bedroom apartment near the coast for 100K. There are cheaper ones but they tend to be in dire need of updating etc and some more expensive in new build complexes.
Unfortunately some developers are still greedy and are building new properties for the Chinese market and really fleecing them with the help of unscrupulous Chinese agents who are only interested in making ridiculously high commissions and not bothered about doing the best for their fellow Chinese. There is one development aimed at the Chinese market where one bedroom apartments start from 330.000 plus VAT. They have all been sold.
It is possible to find a nice 2 bedroom apartment near the coast for 100K. There are cheaper ones but they tend to be in dire need of updating etc and some more expensive in new build complexes.
Unfortunately some developers are still greedy and are building new properties for the Chinese market and really fleecing them with the help of unscrupulous Chinese agents who are only interested in making ridiculously high commissions and not bothered about doing the best for their fellow Chinese. There is one development aimed at the Chinese market where one bedroom apartments start from 330.000 plus VAT. They have all been sold.
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Longterminvestor
Administrator
Surely flooding the market with new developments will not help in the long term?
Veronica
Administrator
The volume of new builds is nowhere near as much as in the boom time. However there seems to be enough demand for the properties which are being built as they do sell fairly quickly. There are different groups of buyers who have different criteria. Retirees from European countries tend to look for resales with title deeds these days while investors who are looking to gain PR or citizenship are going for new builds.
Limassol is being touted as the new Dubai with high rise apartment buildings now being developed along the sea front in anticipation of the flood of new gas field workers etc while Paphos is still the preferred place for people who come here to retire.
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nicolas contavelis
New Member
Interested to invest in income-producing properties complex for investment purposes in Cyprus.
Any suggestions of whom to approach to study possible investment properties.
Any suggestions of whom to approach to study possible investment properties.
Veronica
Administrator
What sort of properties are you looking for? Apartments, villas, hotels?
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nicolas contavelis
New Member
Very good question but I am not sure since I am not too familiar with best Cyprus real estate niche, specialized property market, and projected forecast real estate demand. I guess have searched for the real estate investment market outlook report but could not find any.
Thanks for your insight
Thanks for your insight
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realdeals
Active Member
When is the real estate demand from the oil and gas industry expected to kick in? This sounds very interesting.
Veronica
Administrator
There is a very interesting project which is in the very early stages of a purpose built retirement village. This project is aimed at older people with a great lifestyle plan in place to make retirement more active with as much or a little assistance as the individual needs.
The chance to buy a few apartments, or villas which will be built in later phases with rental income for the future could be a good investment opportunity.
Veronica
Administrator
I think it will be some time before gas starts flowing as they are still exploring the hydrocarbon fields for viability. The reports look quite good. I think it may be another few years before we see any real boom in real estate as a result so now is a good time to buy to benefit from any future rise in prices.
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Longterminvestor
Administrator
From what I read even if the oil and gas industry was not as buoyant as some are predicting, Cyprus property still offers extremely good value at these levels. On a separate subject, I think the unification of Cyprus is a non-starter despite all of the hope in the press in the last 12 months.
Veronica
Administrator
I agree, reunification is very unlikely to happen for a long time, if ever. turkey has too many unreasonable demands.
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diyhelp
Active Member
What kind of yields are available on buy to let properties in Northern and Southern Cyprus?
Veronica
Administrator
I have no idea about the illegally occupied North. As for the Republic of Cyprus there is a big range of rental yields depending on the type of property and the location. Properties on the coast command very high rents as do properties in Limassol which has a lot of Rich Russians.
For more run of the mill properties you can pick up a very nice 2 bedroom apartment in the tourist areas for under 100K euros and rent it out to holiday makers for 400-500euros per week for 8 months of the year.
During the quieter winter months many Brits will look for longer term rentals through the winter so holiday lets can be let at lower rates for 3 -4 months during this time.
Veronica
Administrator
Nicolas I have sent you a private message.
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nicolas contavelis
New Member
Thanks, Veronica . Will check it out
