Cyprus Real Estate Market Report
According to the latest Cyprus Real Estate Market Report, published by KPMG, Cyprus economy will expand by about 2.7% this year, surpassing the March 2016 forecast, with annual growth at about 2.5% in real terms in 2017-2019. Due to the fact that the Real Estate Market is considered as a big part of the backbone of the Cypriot economy, whatever developments taking place in the market play a significant role in the country’s overall economic achievements.
Cyprus Real Estate Market Report indicates improvements. In particular, during the first quarter of 2016 the total property deeds of sale increased by 28% in comparison to the same period of 2015, whereas the interest of foreign investors in the real estate market keeps growing, since over one quarter of these transactions involve overseas residents. This is primarily due to the initiative the Cypriot Government took regarding the Cypriot Citizenship Programme. The incentives offered to investors in the property market, such as the 50% reduction in transfer fees for all sales and the 100% exemption from future capital gains tax for profits on properties, have stimulated the market. Moreover, the legislation that was adopted in the Autumn of 2015 dealing with the long-standing problem of the inability to issue title deeds in the name of purchasers who have paid the amount due in full to the land developer, has enhanced the credibility of the Cypriot real estate market. Furthermore, according to a law implemented by the majority of the Cyprus Parliament and published in the Official Gazette, the immovable property tax has been reduced to ¼ of the total tax arising using the current rates, whilst the tax will be fully abolished in 2017.
To view the full Cyprus Real Estate Market Report, please click here