<strong>Real</strong> <strong>Estate</strong> <strong>and</strong> <strong>Property</strong> <strong>in</strong> <strong>Cyprus</strong> 6
<strong>Real</strong> <strong>Estate</strong> <strong>and</strong> <strong>Property</strong> <strong>in</strong> <strong>Cyprus</strong> Introduction The world’s population is grow<strong>in</strong>g rapidly <strong>and</strong> so is the dem<strong>and</strong> for l<strong>and</strong>. L<strong>and</strong> is a f<strong>in</strong>ite resource <strong>and</strong> therefore its value worldwide is constantly <strong>in</strong>creas<strong>in</strong>g. In recent years the <strong>in</strong>crease has been rapid, fed by <strong>in</strong>flation <strong>and</strong> the <strong>in</strong>stability of the monetary systems <strong>and</strong> fiscal policies of advanced economies, mak<strong>in</strong>g <strong>in</strong>vestment <strong>in</strong> immovable property extremely attractive. The great technological advances <strong>in</strong> communication, transportation <strong>and</strong> <strong>in</strong>ternational trade have made <strong>in</strong>vestment <strong>in</strong> this field easier <strong>and</strong> more accessible than <strong>in</strong> the past. Even if there is a moderation <strong>in</strong> property values <strong>in</strong> the short term, prices have historically shown steady growth <strong>in</strong> the longer term. Man’s aff<strong>in</strong>ity with the l<strong>and</strong> stems from time immemorial <strong>and</strong> it is easy to underst<strong>and</strong> why l<strong>and</strong> has always been considered as one of the most precious commodities, closely connected with social <strong>and</strong> economic stability <strong>and</strong> progress, <strong>and</strong> why legal systems throughout history have sought to put <strong>in</strong> place robust means to regulate the rights of occupation <strong>and</strong> ownership of immovable property. <strong>Cyprus</strong> <strong>Cyprus</strong> is no exception to the global picture. The economic <strong>and</strong> social evolution that has taken place <strong>in</strong> recent years, comb<strong>in</strong>ed with <strong>in</strong>dustrialisation, the development of sophisticated methods of cultivation <strong>and</strong> the absence (at least until recent years) of alternative forms of <strong>in</strong>vestment, have diverted capital from both home <strong>and</strong> abroad to l<strong>and</strong> ownership. This trend became even more pronounced after <strong>Cyprus</strong> became a full member of the European Union <strong>in</strong> 2004. S<strong>in</strong>ce <strong>Cyprus</strong> adopted the euro as its currency <strong>in</strong> 2008, property is easier to buy <strong>and</strong> sell than ever, <strong>and</strong> dem<strong>and</strong> has cont<strong>in</strong>ued to <strong>in</strong>crease. This trend has necessitated the establishment of a suitable legal framework which, while allow<strong>in</strong>g the <strong>in</strong>volvement of <strong>Cyprus</strong> <strong>in</strong> the <strong>in</strong>ternational l<strong>and</strong> market, protects the social, economic, agricultural <strong>and</strong> <strong>in</strong>dustrial <strong>in</strong>terests of the isl<strong>and</strong> <strong>and</strong> its people. <strong>Cyprus</strong> has generally succeeded <strong>in</strong> achiev<strong>in</strong>g a reasonable balance between these sometimes conflict<strong>in</strong>g objectives. Despite its troubled history, it has managed to develop a robust legal system for immovable property which is as efficient as similar systems <strong>in</strong> other advanced countries. It is operated through a series of laws which are regularly amended to meet everyday dem<strong>and</strong>s <strong>and</strong> balance compet<strong>in</strong>g <strong>in</strong>terests <strong>in</strong> this vital sector of the economy. Foreign <strong>in</strong>vestment <strong>in</strong> immovable property <strong>Cyprus</strong>'s strategic location <strong>in</strong> the eastern Mediterranean at the crossroads of Europe, Asia, the Middle East <strong>and</strong> Africa, its reliable <strong>and</strong> transparent legal system, comb<strong>in</strong>ed with its membership of the EU, its excellent <strong>in</strong>frastructure coupled with reliable communication with all parts of the world, its relatively low cost of liv<strong>in</strong>g, excellent climate <strong>and</strong> the friendl<strong>in</strong>ess <strong>and</strong> hospitality of its people, are just some of the factors that make the isl<strong>and</strong> attractive to foreign <strong>in</strong>vestors. Non-Cypriots <strong>in</strong>vest<strong>in</strong>g <strong>in</strong> immovable property <strong>in</strong> <strong>Cyprus</strong> 7