Cyprus Golden Visas Spur Huge Hike In Property Prices

A new report has revealed the Mediterranean island of Cyprus is now a favourite location for expat property investors.

The recently-released Cyprus Real Estate Marker Report shows real estate purchased by foreign buyers in 2017 has soared over the 2016 totals by 33 per cent. Limassol and Paphos were the most popular locations on the island for buyers from overseas, with purchases in the two regions making up almost three-quarters of the island’s total foreign transaction-related real estate revenue. Sales in Limassol were mostly apartments, with high-end villas the most popular properties in the Paphos area.

According to the report, Cyprus has one of the highest rates of home ownership in the whole of Europe, enjoying a strong and significant foreign market for second homes and holiday apartments. Wealthy buyers from India, China, Russia and the United Arab Emirates predominate, due entirely to Cyprus’ ‘Golden Visa’ offers of citizenship and residency for large sums in investment including property purchase. As in many other countries offering ‘Golden Visas’, the increase in sales has fuelled a rise in overall property prices, meaning getting on the property ladder is becoming ever more unaffordable for local people.

During 2017, Cypriot property prices soared by over 30 per cent, with prime real estate prices increasing even more along with a 45 per cent growth in sales of homes priced at €1.5 million upwards. The increase in sales of luxury properties has also spurred a construction boom on the island, along with a rise in the numbers of new building permits. According to the report, Cyprus’s real estate market is guaranteed to remain in positive territory over the coming years, hiked by foreign investor interest.