View Cyprus property for sale:
Cyprus property market overview
- Easy to get to and very “English-friendly”
- A wide range of types, locations and prices of Cyprus property for sale to suit most requirements
- Huge appeal for lovers of beaches, watersports, golf and nature
- EU membership and a legal system based on the UK’s make southern Cyprus a stable economy and safe place to buy property
- Favourable climate makes it a year-round destination
- Buying property in Northern Cyprus is a different matter and potential buyers should exercise extreme caution
It’s easy to see why so many British people are drawn to buy Cyprus property, either as a holiday or retirement home. A long association with the UK has left its legacy on the island, with English widely spoken, cars driven on the left hand side of the road and a legal system that owes much to Britain. Add a fantastic climate and, recently, excellent returns on property investment in the country and there’s little more that most people could want.
Choice of Cyprus Properties
Cyprus benefits from a climate that offers a mild winter, short but picturesque spring and autumn and long, hot summers. It has long been a popular holiday destination but in recent years, property development in Cyprus has rocketed as its appeal to homebuyers has grown. There is a host of off-plan property developments available in Cyprus as the in-demand resorts continue to grow. As properties in the most popular destinations of Cyprus have become more expensive, previously undeveloped areas have started to see schemes constructed to appeal to overseas property buyers.
The choice of brand new and recently built property in Cyprus is overwhelming. The coast is of course the main draw for foreign homebuyers and there are plenty of properties of all types for sale in Cyprus within close proximity of the sea, or with sea views. From apartments to large, luxury villas, there is something to suit most requirements.
Golf is a growing industry in Cyprus, not surprising given that the pleasant climate means a twelve-month playing season. The Cypriot government has a long-term aim of allowing nine courses in all. Currently there are five, including one in the north, and again there is a wide range of properties for sale in Cyprus on these courses, including some of the most exclusive on the island.
Traditional Cyprus properties are available in the form of townhouses and villas and are located in city centres, suburbs and rural areas. Refurbished old houses in a quiet village setting, yet within an easy drive of one of the island’s major cities, are a common choice for overseas buyers, though for this very reason, cheap properties in Cyprus are becoming more and more difficult to find, particularly in the more picturesque areas. Intrepid buyers might pick up a dilapidated property in Cyprus quite cheaply, but would have to be prepared to work hard to make it a habitable home.
The Cyprus Property Market
Buying property in Cyprus as a whole, is cheaper compared with buying similar properties in France, Spain and Portugal.
After a few years of dramatic price rises of property in Cyprus, average growth has been at around six per cent to eight per cent over the past couple of years. Rental yields for a Cyprus property are around the five per cent mark, though there are strict regulations on letting Cyprus properties. Most buyers of Cyprus property are purchasing “lifestyle” – in other words, they are looking for a home to use themselves, for holidays or relocation/retirement, rather than as a pure investment. Certainly anyone looking for a “quick buck” return on their property would be looking in the wrong place in Cyprus, though long-term indicators look very favourable.
Accession to the EU, and recent adoption of the euro (replacing the Cypriot Pound) has provided Cyprus with an underlying stability, and interest rates, inflation and unemployment all indicate a safe economy to buy into. What restrictions there are on property ownership are likely to be abolished by 2009.
Kyrenia property (northern Cyprus) is becoming more widely publicised now, though potential buyers should be wary of anyone suggesting that the problems inherent in buying property in northern Cyprus have diminished recently. There is still a huge legal question mark hanging over the ownership of properties in what is referred to as the Turkish Republic of Northern Cyprus – the need to exercise caution and employ independent professional advice in this case is even more imperative than usual. See North Cyprus Property Law.
The Process for Buying Property in Cyprus
- When a property has been chosen, the buyer puts down a deposit of between £1,000 and £2,000. This represents a legally binding purchase agreement
- Contracts are then drawn up, outlining the conditions of the sale, and at this point a further deposit of between 10% and 30% is payable (10% is usually paid for a resale property, and between 20% and 30% for a new-build)
- At this point the contracts are sent to the land registry and the property buyer must make a written application to the Council of Ministers in Cyprus for approval to transfer ownership of the property into the property buyer’s name. This is really only a formality, and you can live in your property while waiting for the approval to come through. Buyers need to present bank and character references with the application
- The balance of the money is generally paid on completion for resales and in stages agreed by the developer for new-builds
- All taxes are payable when approval is granted
Buying Property in Cyprus - Fees and taxes
- Transfer tax in Cyprus varies between 3% and 8%, with additional stamp duty payable of up to 0.2% of the property’s purchase price
- You will also need to budget for annual property taxes. These can be as much as up to 3.5% of the value of your home
- In addition, allow between 1% and 2% for legal fees and anywhere between 3% and 10% for estate agents’ fees, although the norm is around 5%
- Notarisation should cost around £1,350
Hotspots to Buy Cyprus Property
The most sought-after in Cyprus, due to its ideal mix of great natural charm, wonderful climate and a wide selection of high-quality property. Whether it’s the sea, beach, golf or nature that appeal, Paphos has it all, and prices of Paphos properties for sale reflect this.
- Population: 792,604
- Capital: Nicosia
- Languages: Greek, Turkish
- Area (km2): 9,250
- Currency: euro
- Exchange rate: £1 = €1.25
- Dialling Code: +357
- Emergency services: 112
- Embassy in UK: http://www.cyprus.embassyhomepage.com
The standard of Cypriot healthcare is generally very good, and English is widely spoken in hospitals and clinics. Visiting Brits will be given emergency treatment, but subsequent treatment will need to be paid for. Private healthcare is very reasonable and is probably the best choice for anyone spending a considerable amount of time there
There is a good selection year-round of both scheduled and charter flights from most major airports around the UK to Cyprus, with extra flights provided during the high season
Any EU citizen can stay for up to 90 days in Cyprus without a visa. Those wishing to spend longer will need a residence permit, which can be obtained from the local Cypriot authorities. This is a fairly straightforward process for anyone coming from an EU member state. That said, anyone wanting to stay permanently will need something called an Alien Registration Certificate. Proof of residence, funds and identity are required for this
Buying Property in Cyprus - Top Tip
While low prices are attracting certain buyers to the Turkish north of the island, would-be purchasers should be aware that buying a home in the north brings with it more risks than in the south, most notably where the issue of clean title is concerned
Some information contained herein may have changed since it was first published. Homes Overseas strongly advises you to seek current legal and/or financial advise from a qualified professional.