Investing in real estate in Cyprus

Cyprus is an incredibly picturesque island with beach-side and mountain top towns. Villages and resorts have become extremely popular with property investors and those seeking a new life abroad.

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No over-development

Southern Cyprus represents a safe option for property investment and non-Cypriots are now able to buy apartments and houses on plots of land no greater than 4,000 square metres. To buy in southern Cyprus, you’ll firstly need to find a registered estate agent.

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Purchasing could not be more simple

If you decide to complete and look for an even greater return on your investment, then this is also simple, affordable and, thanks to the British-based banking system, reassuringly transparent. Most developers will offer preferential packages from lenders, involving LTV (loans-to-value) mortgages of 80%, terms of up to 25 years and interest rates currently between 3.75% and 5.5%. Moreover, ‘interest only’ and ‘capital repayment’ mortgages are available, along with 5-year fixed-rate and grace periods.

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The choice of the smart property investor

With such easy and beneficial terms available, it’s not hard to see why all level of investors are eager to buy in Cyprus. Factor in that mortgages can be arranged from the UK without even visiting Cyprus and, when buying off-plan, developers often guarantee mortgages until the title deed is issued, and the appeal is even more obvious.

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Purchasing a property in Cyprus

Generally, once you’ve decided upon a property and the price has been agreed, you’ll pay a reservation fee of CY £1,000 – 2,000 to the agent or developer. This ensures that the property is taken off the market and then a 28-day period ensues, during which the buyer must complete all surveys and appoint a solicitor to carry out legal checks and draw up a contract.

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