Last figures obtained from Department of Lands and Surveys in 2016 have shown 36% rise in the sales of immovable Cypriot property. This is the highest level of sales recorded after the downfall in July 2008. 25% of the transactions are contributed by overseas buyers, which show Cyprus real estate market is booming. Wealthy buyers, entrepreneurs and investors are taking great interest to purchase a wide range of properties from quality houses, office buildings and hotels as an investment to generate additional income. This demand is expected to increase in coming years.
As we can see island’s asset market is facing a high-demand, a shortage of investment property units have occurred. Can you guess the reason for this significant rise in demand for real estate units? This growing property demand is observed soon after the announcement of €500,000 reduction in the investment amount. Cyprus citizenship by investment program allows foreigners to invest in Government approved real estate projects to obtain Cypriot passport.
Though this citizenship program was launched five years back in May 2013 to facilitate foreigners to obtain residency, at this moment, it has become more favourable than ever. Council of Ministers has announced the implementation of an updated investment procedure and new financial criteria for foreign investors. Candidates who are interested in obtaining second passport can invest €2.000.000 instead of €2.500.000 to gain inherent rights. Applicants can purchase a residential or commercial unit, or they can spend the same amount in off-plan, tourism and infrastructure projects.
What are the benefits of investing in under construction projects?
Off-plan investment in the residential and commercial project is a common practice of expatriates and foreign investors. These property investments often make sense, when they are made in thriving market. In contrast to ready-now units, under construction units requires small down payments. If you want to buy an off-plan in Cyprus, you will need to pay only 30% of the total cost to book a unit on your name. If you feel necessary, you can also avail the mortgage to fund your investment. Developers often asked to pay rest of the amount after completing critical stages of construction. This will financially help you and give you an option to spread the payment over the construction period. Under construction projects don’t ask buyers for lump-sum payments, which is a great relief and allow investors with small budgets.
Tips to maximise the profits of purchasing off-plan property in Cyprus
Though financing the purchase of these incomplete units is much convenient as compared to ready now properties, buying properties is expensive. Price of an under construction property ultimately depends on its size, kind and location. You can’t control the costs, as developers and market conditions are responsible for this, and it makes sense. But you can follow few simple tips to maximise the profits or return on investments.
You must have seen minimum deposit is significantly low at the launch of the project. Sometimes discounts are also announced for early buyers. Developers often make such offers to grab funds to keep their projects running. Once they gather sufficient amount, they can increase the minimum deposit amount. If you want to avail some discounts, you should buy early.
Pick the best
Whether it’s an apartment, villa or townhouse project, it must have few units, which called the best units in the property. Best units are capable of offering higher capital appreciation in small time frame either in the form of sound rental income and higher reselling price
Conclusion: Spend money to buy an off-plan property in Cyprus to avail Cyprus citizenship by investment program to become a legitimate citizen here.