After several difficult years, there are signs that the property market in Cyprus is starting to recover. ThatÃ¢â¬â¢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 youÃ¢â¬â¢ll need to know if youÃ¢â¬â¢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: Ã¢â¬ÅIn 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.Ã¢â¬Â
Mike Braunholtz, sales director with the agency Prestige Property Group, said: Ã¢â¬ÅThe market is beginning to re-emerge now,Ã¢â¬Â adding that prices have regained about half of what they lost, depending on the area.
Buying property in Cyprus
If youÃ¢â¬â¢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. YouÃ¢â¬â¢ll also pay a transfer fee of 8 per cent (for homes over around Ã¢âÂ¬171,000) and a small stamp duty.
If youÃ¢â¬â¢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