Dipping prices of homes and apartments in different Cypriot cities are indicators that confidence has returned to the property market of Cyprus. Experts attribute this positive development to the country’s Golden Visa scheme.
Latest market report from overseas property consultant and valuer Danos reported that average house prices went down 11.1% and apartments by 14.6%. In Limassol, the price decline was 3% for Q2 of 2012-13, while it was 2.5% in Nicosia, 1.7% in Paphos and 1.3% in Larnaca.
Under Cyprus’s Golden Visa offer, for a minimum EUR €300,00 (USD $418,181) investment, non-European nationals could acquire a permanent resident visa. Cyprus offered the visa package in 2013 as part of the conditions of a EUR €10 billion (USD $13.9 billion) loan from the European Union and International Monetary Fund.
The scheme appears to have stabilised home prices in Cyprus, which has been falling the past three years.
Panos Danos, managing director of Danos International Property Consultants & Valuers, said, “The traditional overseas investors (British and Russians) are not willing to sell their properties in Cyprus at a relatively low price anymore. Confidence is coming back and will improve further once the Cyprus Bank lift all restrictions (buy the end of June 2014) and more investors are attracted by the ‘visa” or ‘passport’ scheme.”
Those who acquired the Golden Visa are Arabs, Chinese, Indians and Ukrainians, attracted by the good weather, infrastructure and services in Cyprus as well as the new marina development at Limassol, reportedly the only Mediterranean development with private berths attached to homes.
It includes retail shops, restaurants and conference facilities, expected to finish by the end of 2014 and attract high-end investors.