Cyprus Property Market 2019 - Buying a property in Paphos

Cyprus property roundup – buying property in PAPHOS

Buyers from all over the world are beginning to show increasing interest in purchasing properties in Cyprus, and it will be a wise decision for you to follow suit by making Cyprus your preferred destination for purchasing properties in 2019.

Here are some reasons why buying property in Cyprus is ideal –

Get luxury for less

You can go ahead to compare the affordability of Cyprus to other popular hotspots all over the world if you intend to buy a holiday house this year. This amazing masterpiece of an island is situated at the Europe-middle east crossroads, and the prices of its properties are very much favorable. If you wish to buy a house in central Paphos, you will get one for far cheaper than if you bought a similar property elsewhere in other cities across the Mediterranean. Then again, in recent times, the newly planned developments taking place in Paphos comprise luxury villas, deluxe spas, superb beach clubs, and more and they are proving to be rivals of the spectacular communities of Dubai, of course, with more reduced prices. This is a perfect time to purchase luxury properties in Cyprus that will yield benefits later.

Gold is the target

Now you’re presented with the chance to make an investment on a new property in Cyprus and in exchange get citizenship (plus an EU passport), and this has continued to attract non-EU buyers who have a high net worth. In Cyprus, there is a Golden Visa scheme which is arguably the world’s most efficient as eligible candidates are granted citizenship just within months after applying. Ever since its institution in 2014, the property market has been affected in positive ways. There are property experts all over Cyprus that assist buyers from various parts of the world to make investments in the new build properties in Cyprus to help them match the requirements of the Golden Visa.

Find a bright future in Paphos

In 2017, Paphos was crowned as the European capital in terms of culture. As the celebrations went on, Paphos showed the world its amazing antiquities. In fact, it was able to establish itself on the world map to be an authentic cosmopolitan city. With its public areas receiving an upgrade, as well as, with improvements to its infrastructure, Paphos has successfully taken Cyprus to new heights. Then again, you’d find that Ryanair now has more than 15 additional flight routes that take you into Paphos and out. There’s, also, Cobalt Air which has launched flights directly to some major cities in the world like Moscow from Paphos.

WHERE TO BUY A PROPERTY IN PAPHOS - BEST LOCATIONS TO BUY PROPERTY IN CYPRUS

No matter where it is that you end up in Cyprus, you will always be close to the sea. Now, let us take you through a list of very popular locations that are attractive to foreign buyers. Some of these beautiful places are rife with villages, as well as smaller towns, and you will find so many websites that deal on properties in Cyprus to browse through.

KATO PAPHOS

Popularly known as UNESCO's World Heritage town, the beautiful Kato Paphos area lies on Cyprus' southwestern coast. This location is very popular for being a favorite spot for British residents, as well as, tourists. It is definitely one of the favorite places you would want to reside if you love to have closer proximity to the beach, including some of the ancient ruins and still remain flocked by shops, cool bars, and also nice restaurants. If you are looking at Cyprus as the perfect country to retire or wish to relocate to Cyprus to have a better life for your family, Paphos will make a great choice. The town is very popular and has a school which is top-ranked in the international scene. It also sports a great hospital, amazing shopping malls, and a town center which has a fascinating history. Paphos was pronounced as the capital of culture in Europe in 2017, and it has an international airport in close proximity.

The Tourist Information Office of the Tourism Organization of Cyprus sits right in Kato Paphos. You could take a walk from here through the town’s principal resort part. You can continue walking on the coastal promenade until you get to its little harbor that has a medieval fort and get reminded about Cyprus’ history. Kato Paphos is superb for opera festivals which are always held every summer. Head to its archaeological park and see the beautiful floor mosaics in its age-old villas which can be traced back to Roman times and also seen as the most exquisite in all of the Mediterranean east.

There is an area called St Paul’s pillar which you can get to by crossing St Paul’s Avenue, and according to tradition, this is seen as the place where St Paul was flogged before he got the Roman governor converted Christianity. Ahead lies the Agia Solomoni which is seen as a synagogue in the past with a massive terebinth tree which is arrayed with handkerchiefs that are knotted and are presented as offerings from faithful. Just a little further and you will find the superb underground tombs which are meant for kings and carved from solid rock. On your return trip, you could simply visit the aquarium.

Since Paphos is one of the most desired places in the world, the prices of properties here are relatively higher when compared to other locations on the island. Houses that allow you to access swimming pools cost hundreds of thousands of euros, and you will find that beachside villas can cost up to millions. However, if you only wish to rent an apartment while trying to decide if to buy, you could get one for at least €500 a month.

PEYIA

Peyia sits on Cyprus’ far west coast at the place where its hills overlook Coral Bay. Just like the Kato Paphos, a lot of British expatriates and tourists from all over the world love to visit Peyia. You can refer to it as a mixed zone as you will find so many Britons, Cypriots, as well as, Russians and more recently Chinese referring to it as their home.

There are a lot of fun activities to do in Peyia, and they range from taking a walk in its hills to paying a visit to the Turtle Bay which is a natural reserve and engaging in a game of golf. Then again, it is very close to the green forests of West Cyprus which makes it a haven for tourists who love nature.

For persons who wish to get property in Peyia, you’ll need to budget around €120,000 for townhouses although you may be able to find apartments for lesser. The prices for its luxury villas will range from €200,000 and above.

CHLORAKA

When it comes to property purchases, Chloraka is ideal as it possesses every necessity for living like supermarkets, banks, doctors, gas stations, and more and it would only take you some minutes to get to Paphos Harbor or the Coral Bay, as well as, great sand beaches. Mostly renowned for a boat called the Agios Georgios, which was key in ammunition importation as the Liberation Struggle went on between 1955 and 1959 and eventually rock-crashed due to a storm, Chloraka has schools situated in the village, and there is a very amazing Orthodox Church referred to as the Agios Georgios as well.

Then, you’d get to see Akritas Chlorakas, a football team. Hotels, as well as, apartments and villas that are ideal for loved ones line its coastline. You will find a variety of great dishes being served in the restaurants including the Meze, intercontinental dishes, and more. You’ll find a lot of great properties to purchase in Chloraka.

WHY NOW IS THE BEST TIME TO PURCHASE PROPERTY IN CYPRUS

There is no other time that is better than now to purchase property in Cyprus. Here are some reasons that you should consider making a property investment in Kato, Paphos, Peyia, Chloraka and more –

Cultural Paphos

As the capital of culture and a long time before the world calls it time on the historical celebrations, the art, music, and more, the level of financial investment will always be on the rise. In fact, over €25 million have been committed to infrastructure as virtually all sites, squares, and centers have been renewed.

Abolished Immovable Property Tax

It is often hard to get great news with regards to taxes, but if you are set to buy a property in Cyprus, you will find that the Immovable Property Tax has been abolished. This tax that involves the payment of annual rates dependent on property value has gone extinct as Cyprus looks to operate a system that is less complex and promote transparency.

The Amazing Beaches

While you are getting excited about the tax permissions, do not forget that the island still possesses 49 great beaches, as well as, sunshine all year round.

Rentals

With the steady increase in the influx of tourists to Cyprus, having a property is ideal as you can rent them out to tourists and you should have no trouble with finding tourists to rent your beautiful home in exchange for good money.

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What types of properties can you buy?

If you are reading this, you probably already have a strong interest in Cyprus, but it is possible that you have not checked out all the options with respect to deciding what kind of property to buy. What most people do is to purchase a holiday home that they can come to relax 2 to 3 times annually. However, is it possible that they could purchase buy-to-let properties which they will still be able to pay visits to but earn money while they are absent? Here some options to consider -

Residential homes

In Cyprus, you will find a wide variety of properties that people who wish to relocate will find appealing. Although the apartments, as well as, the villas seem to be the most frequent choices, you will still get to find old stone houses which are situated in quaint villages, bungalows that are set in forests, organic farms which are appealing for people who love nature, and modern houses that are situated in the urban setting. The properties may not always be new, and you will find ruins that need a restorer. Then again, the properties could be located by the beach, close to golf courses, in remote areas, or even up the mountain. With Cyprus, you have the luxury of buying what really is appealing to you and not others.

Holiday homes

There are so many persons who need just another property where they can come to and relax or even spend their retirement days. In Cyprus, you find a wide variety of holiday homes and some of them are located by the sea and may come with a pool of their own. This gives you the opportunity to do an exchange with owners of holiday homes in other parts around the globe. What's more? You could have your friends visit your holiday home too. Holiday homes come with great options for people who are interested in visiting Cyprus for luxury.

Pitfalls to avoid when buying property in Cyprus

While purchasing property in Cyprus is such an attractive prospect, good deals sometimes come with pitfalls that one must look out for. Here will be given potential buyers practical advice that will help them to be extremely cautious when looking to buy property in Paphos and other areas. This is important, especially, if the property’s title deed cannot be readily made available. This usually happens when it comes to buying new properties in Cyprus.

A lot of EU/non-EU individuals that have a high net worth always show an interest in acquiring Cyprus property and look to do so via the investment programme which grants citizenship or residency. Continue reading to find out some pitfalls that are worth avoiding when looking to buy property in Cyprus. You will also discover the best ways to ensure a smooth and efficient property purchase.

Neglecting to appoint a real estate lawyer

It is highly paramount that you appoint a lawyer with a specialty in the property. One of the biggest errors that most people make is to append their signature to a purchase contract which is presented to them by a developer. More often than not, contracts of such nature designed to favor the developer at the expense of the buyer. Then again, buyers have to exercise caution with respect to lawyers who represent vendors or builders as they are not independent. Working with them simply translates into not having a lawyer.

If you are looking to buy property in Paphos or other areas in Cyprus, you should endeavor to find a lawyer who is reliable and is fluent in your own language. Also, the lawyer should not have any connections to any of the parties that are part of such transaction. With a good lawyer, potential pitfalls will be easy to avoid. In a nutshell, a property purchase is a huge investment, and you should never get involved without enlisting the services of a professional property lawyer.

Avoid properties under ownership dispute

In divorce proceedings, properties can come under an ownership dispute. There are a whole lot of examples where the ownership dispute can exist with respect to the property. To bypass all of these pitfalls, it is necessary that you buy your property from a developer with a good reputation. However, it may not always be possible since, in recent times, developers and now becoming intermediaries for resale properties.

Hidden commissions

Another very costly pitfall that you could encounter when purchasing property in Cyprus has to do with hidden costs regarding transfer fees or VAT cost. These cost can range between 1.5% and go as high as 19% of the agreed price of the property you are buying. The best way to avoid these kinds of costs is to enlist the services of a lawyer with a good reputation who can help you with the right references.

Not considering all related costs

It is very important that you calculate the vat, transfer fees, disbursements, taxes on immovable properties, Legal fees, stamp duties, and more that apply to purchases in real estate. This should be done very early to help you draw up a comprehensive budget.

In Cyprus, developers and advisers most often misunderstand and misinterpret vat. When you make an uninformed decision with respect to vat when purchasing property, will find out that you experience difficulties with managing your properties the way you want or will face vat liabilities that are significant.

Paying the reservation fee without a written reservation agreement

A purchaser who decides to pay the agent a fee of reservation must make sure that an agreement is written and is appointed by an ideal lawyer which confirms the amount that was paid, how the refund process will be conducted, the property’s full value which can be lowered in certain cases, signing the sale contract while not undertaking due diligence, and more. Although lawyers are not under any obligation to carry out due diligence automatically, a lawyer that is reputable should be able to do this.

In 2011, a specific law regarding performance was introduced by the government of Cyprus to precede a sale contract for pre-existing mortgages. However, you are advised to conduct a check to determine if any land is under a mortgage before being purchased to bypass complications that may arise later on. Sale contracts will be inadequately drawn up if these search results are not thoroughly considered. Then again, never put all your reliance on developers in conduction due diligence as some will even go on to provide you with official extracts gotten from government departments.

Negligence to pin down every agreement

A property purchase should endeavor to ensure that every term and condition are detailed out in the sales agreement including all extras. Do not neglect to include inventories of repairs or damages that are necessary.

Not depositing the contract of sale

It is important that you deposit the contract of sale at the land registry and this should be done within the specified window according to the regulations. If you fail to do so, important legal rights will be stripped off you. Then again, the contract of sale should be stamped as stipulated by the law or else there are penalties that apply.

Not focusing on material contracts that are linked to the property

Most luxury villas in Cyprus require that an agreement is carried out with respect to property management. Developers are commonly known to provide this service. Material agreements need concrete attention in order to understand every clause, time, and condition which will guarantee that the property of the purchaser is secured while you are absent from Cyprus.

Negligence to make your will

With respect to immovable property, the Cyprus law is supreme and has elements of enforced heirship. Well, there are certain kinds of purchasers who are privileged by law and are not bound but can come up with a will that stipulates how their property should be passed down.

Taking cues from the experiences of purchasers that purchased property in places like Spain, France, Greece, as well as Cyprus, and are now entangled in a lot of legal battles. This does not mean that your dream of buying property is crushed because all over the world, millions of foreigners who have a high net worth are now buying properties evermore.

If you're looking to invest in property in Cyprus, it is paramount that you avoid these pitfalls. This will help me to avoid a lot of potential problems that are connected with purchasing property in Cyprus. Importantly, endeavor to seek legal advice by working with a competent lawyer that is not affiliated with any of the parties involved in the deal. The duty of a good lawyer is to make sure that purchasers get adequate protection so that they do not fall prey to the pitfalls that are outlined above.

Author: Christos Nikolaou

BEng Mechanical Engineering, MSc Real Estate, ETEK Property Valuer, Register and Licensed Real Estate Agent.

Christos Nikolaou is the founder and Managing Director of Property Canvas, he holds a license as an Estate Agent from the Association of Real Estate Agents of Cyprus and he is a registered Property Valuer in the Technical and Scientific Chamber of Cyprus (ETEK). He is the author of our “Cyprus Property Market 2019 - Buying a property in Paphos” and is a certified advance negotiator.