Property in Cyprus is set to boom in 2007, with price rises of up to 15%.The island is among the established property markets, which will be the hotspots for 2007, while emerging destinations such as Bulgaria and Croatia are set to cool.Estate agent Evripides Lemonaris told The Cyprus Weekly that flats and houses will see increases of 10%-15%.“Land is set to see even higher increases this year, up to 20%-25% due to the prospect of the introduction of VAT on plots of land in 2008. Expected demand this year is set to put prices up,” Lemonaris said.Property expert and project manager Antonis Loizou, said that the property scene on the island is set to see a boom with an expected increase of up to 10% at least for most properties.According to Loizou, land and development projects in urban areas will see an increase of around 12% while areas near towns will go up 15%.
Nicosia office property, Loizou said, would see an increase of at least 20%, as a result of demand, and this goes for old and new buildings.each land is also set to see an increase of 20% and land near the sea front will go up, at least 15%, Loizou said.
The free Famagusta area, including Paralimni and Sotira villages, will increase by 20% and property in Larnaca 10%.Holiday homes in tourist areas across the island which are not near the sea front will go up 15% and land outside tourist zones will increase between 15%-20%, he told this newspaper.Loizou agreed with Lemonaris that plots of land would go up by at least 20% as a result of the changes in local planning provisions and the prospect of the introduction of VAT next year.The main reasons for the overall increase in the local property market this year was supply and demand, due to low interest rates (only 4%) in deposit accounts, foreign demand for property on the island and the change in the mentality of locals, who now prefer to buy property than live in rented accommodation.
Loan facilities
“The facilities given by banks, with up to 30 years for paying back, has made Cypriots to want to buy a home and sell it at a later stage for an even better one, rather than live in rented accommodation, “ Loizou said.
Source: Cyprus Weekly
