Buying a property in Cyprus: the market is changing

Estate agents and property developers in Cyprus complain that, for them, property for sale in Cyprus may not generate as much profit as they had hoped. Sales are falling and the price increases, which were evident between 2005 and 2007, no longer seem to exist. The Cyprus property for sale tag, which was once quite high, as a result of the credit crunch and economic downturn, has dropped to unthinkable levels. So do we hear loss? Well, maybe there are those who complain about a bad situation, but if you look closely at the facts and figures, it would be clear that now is the time to invest.

Property for sale in Cyprus has always been a tempting business proposition for UK investors. Over 300 days of sunshine, coupled with the island’s beauty, has easily attracted investors. Property purchases tended to be for investment or second home options. Shopping possibilities have been quite interesting on this third largest island in the Mediterranean. However, massive property price increases in recent years have caused many to refrain from owning property in Cyprus.

But the cards are already changing hands. The once daunting situation for buyers is changing to present new avenues for investment. Property prices have been drastically reduced to offer property in Cyprus for sale for £85,000 or even less. Even a five star apartment in North Cyprus can be negotiated with the listed price. Furthermore, because there are not many buyers, companies face extreme difficulties in ensuring just basic survival, offering even better financial conditions for potential buyers. For example, a plot in Alethriko, which was worth CYP 120,000 a few months ago, is now priced at less than CYP 90,000. Also, with property sales down around 40%, there isn’t much for sellers to play around with. Paphos is the region facing the most severe blow. Simply put, right now a property for sale in Cyprus is a deal where buyers can manipulate the terms to suit them.

The government also bears the brunt. Capital gains taxes, which contributed to its overall income, are being cut. The lack of buyers is disturbing the general financial scenario. This is making the Cypriot administrative machinery prepare to introduce measures and thus work to repair the situation. So for those buyers who invest now, profitable returns are more realistic.

While several regions can be checked out, Northern Cyprus in particular deserves a special mention. Property for sale in Cyprus in the northern region is already cheaper compared to the southern options. Also, the pound sterling is the currency used for buying and selling, giving UK buyers an added advantage. And if the political scenario is to be believed, the reunification plans may further boost the situation of the property market in Northern Cyprus.

When it comes to buying property in Cyprus, the buying process begins with the signing of a reservation agreement. The agreement ensures that for a deposit the seller removes the selected property from the market. The Sales Contract is the next stage. This is quite an important step as the Sales Contract deserves serious consideration. If you buy a property in Cyprus, don’t just sign the standard sales contract, but check it thoroughly and make sure that the appropriate modifications are made to suit your interests. Once signed, the contract is sealed and a copy is delivered to the Land Registry. The next step involves the transfer of Title Deed to the buyer’s name. A Certificate of Registration is provided to the buyer, confirming the buyer as the sole owner of the Cyprus property selected for sale.