Cyprus property outlook

Many global property markets have experienced some form of slow down in the last couple of years – not so with the Cyprus property market. The third largest island in the Mediterranean has been on a boom that does not seem ready to stop. With the island’s ascension to the European Union and the lifting of all restrictions for Europeans to live and work on the island, expat demand for property in Cyprus is expected to increase.

The Cyprus property market will also benefit from the recent introduction of a 15% VAT on all property purchases in accordance with the “acquis communautaire”; the VAT is expected to increase property prices by an immediate 5%.

On Jan. 01, 2008 Cyprus did another thing that is highly beneficial to the island’s property market – it transitioned to the Euro as their main currency. The change means that interest rates are likely to fall – an occurrence that will certainly boost demand for property as greater numbers of home buyers will want to take advantage of the lower rates.

Several analysts are so bullish that the Cyprus property market is about to see dramatic growth that they are predicting property prices will increase by as much as 50% over the next year. Given the fact that the island naturally has limited land resources their predictions are likely to play out as larger portions of the nation are developed and less space is left for further construction projects to take place.

Overall, investors who want a good country in which to place their money should certainly think twice about Cyprus.

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