Cyprus – Property Acquisition and Land DevelopmentCyprus - Property Acquisition
Overview
Property prices in the Republic of Cyprus peaked in 2008 and, after declining by 30 percent on average, are now on the rebound. At present levels, domestic property prices are competitive with other southern European countries, including Portugal, Spain, and Greece, as well as neighboring Israel and Lebanon. Parliament passed new legislation July 8, 2018 expediting foreclosure procedures and facilitating loan securitization. This legislation aimed at reducing the very high levels of non-performing loans tied to property but may push property prices back down again. Despite the recent improvements in the legal system, prospective property investors should be aware of persistent delays in the Cypriot judicial system, which the Cypriot authorities are trying to address.
Leading Sub-Sectors and Opportunities
Long-Term Investments
Long-term investors may find opportunities to acquire existing tourism infrastructure at discounted prices following the financial crisis of 2013. Legislation passed in 2015 and 2018 facilitates this process. Prospective investors must have a legal presence in Cyprus and be vetted by the Central Bank of Cyprus. Non-EU investors interested in acquiring large development projects in the Republic of Cyprus (ROC) may be able to overcome restrictions concerning property size by establishing a company in the ROC.
Web Resources
Central Bank’s Property Index
Royal Institution of Charter Surveyors (RICS) Cyprus Property Index