Buying Property in Cyprus is Getting Expensive

Investors who want to get in on the rental returns and price spikes that buying property in Cyprus has tended to deliver in the past will find their timing might be off – depending on their willingness to gamble on how long the prices will continue to rise in Cyprus that is…

The predicted rise of Cyprus’ popularity has been realized and seems to be having a very big impact on prices as of late, but Cyprus has long been considered a fairly expensive market to buy in and now buying property in Cyprus is getting more expensive, how far can the market withstand the heat?

Despite the costs, the appeal of buying property in Cyprus has long been strong.  Investors find it is relatively easy to attract holidaymakers to their jet to let real estate and even find they can resell fairly quickly when they want to exit and that reselling can fetch decent returns.  Expats too enjoy the Cypriot lifestyle.  With its weather that is the antithesis of London’s, unique ancient sites and a very laidback lifestyle, the Cyprus landscape is one that appeals to many foreigners looking for a new place to call home.

In this article we’ll explore what is going on with the property market in Cyprus and whether it can sustain and maintain its price increases. We’ll also delve into why this region has become such a hot commodity in property terms.

According to the Cypriot Financial Mirror, the property prices in Cyprus are on a major upswing.  The month of September alone saw a record rise of about 12.3% in residential prices.  This is up significantly from August which only saw a rise of 2.7%.  Keep in mind however, that rises have been steady for nine months running.  This means properties that might have been affordable last year at this time very likely cost a great deal more today.

Buying property in Cyprus has become a very “in” thing to do as of late.  With its incredible landscape, Mediterranean climate, unique history and other significant tourism and lifestyle draws, the country’s popularity is climbing dramatically.  Even financial giants like Citigroup have issued positive statements about Cyprus and its booming real estate market.  Over the long term Cyprus certainly looks very good for investors.

However, buying in Cyprus does come with some warnings especially for those seeking short terms gains.  It is unlikely the price increases are sustainable at this rate…more likely is a cooling of market activity and a steadier period of growth over the medium term.

Beyond the current spiking prices, buyers often find the property purchase process in Cyprus is a bit different than what they are used to as well.  Getting sound legal representation is always advised, counsel can help ensure that title searches are initiated, property transfer is handled correctly and that buyers’ interests are truly represented.  In short, a good representative is an absolute must when buying property in Cyprus even if the buying process seems fairly straightforward in theory!

Buying property in Cyprus is popular with investors, holiday home hunters and retirees - as prices here climb, investors are seeing rather big pay offs but do exercise caution when buying - how long the rise will continue is anyone’s guess, but it does seem as if the climb is not expected to go on for ever.

Investors who got in early are likely better positioned to take advantage of the Cyprus price spikes.  Still, off-plan properties are available at prices under GBP 50,000 in some locations.  This means taking advantage of all Cyprus has to offer is still within reach for many.