Cyprus Property News magazine for overseas buyers & real estate investors

Sunday, May 31, 2020
Home News Cyprus property price correction

Cyprus property price correction

THE Finance Minister, Charilaos Stavrakis, is reported as saying that Cyprus property prices will go through a phase of correction, boosting beliefs that the sector is facing a crisis. “Normally, property prices will be corrected. Although the downturn in the market is expected to affect the public revenues, the government has taken into account this parameter and if recession continues, it will take additional measures“, the Minister said.

Referring to the Land Registry figures, which show a 40% reduction in property sales, Mr. Stavrakis said that the decrease was indeed significant; especially in Paphos and the free areas of Famagusta, where the reduction in sales is at its greatest.

Capital Gain Tax revenues from the sales of property have dropped by 18% over the first 8 months of the year.

Mr. Stavrakis believes that the problem is more acute in the sale of summer homes and second homes in tourist areas by locals and foreigners. “This was more or less expected due to the dependence of the property market on the British market, which is experiencing an economic crisis due to the drop in the value of Sterling“, the Minister explained.

Minister Stavrakis believes that the government’s stronger housing policy, which is expected to cost €25 million more than estimated for 2008, will moderate the downturn in the sector.

The government expects that the activity in the property sector will continue to shrink in 2009. The Ministry anticipates that the capital tax revenues will drop by 6.8% in 2009 against 20% this year.

LOCAL WEATHER

Cyprus
few clouds
22.5 ° C
25 °
20.6 °
60 %
8.7kmh
20 %
Sun
19 °
Mon
24 °
Tue
26 °
Wed
24 °
Thu
22 °

EXCHANGE RATES

EUR - Euro Member Countries
GBP
1.1115
RUB
0.0128
CNY
0.1262
CHF
0.9360

MOST POPULAR

property tax

Property sales collapse hits all markets

The historic collapse of 80 per cent in property sales in April hit the local and overseas market segments according to statistics from the Department of Lands & Surveys.