Decline In Interest From Overseas Buyers For Paphos & Limassol

The latest analysis of sales contracts from the Department of Lands and Surveys shows a shift in interest among overseas buyers, who are now favoring the more affordable districts of Larnaca and Famagusta over Paphos and Limassol.

Reports indicate that overseas sales in Larnaca have surged, largely driven by increased interest from Israeli investors. Additionally, other international buyers seeking a sunny holiday home are now turning their attention to Famagusta.

However, the future of the Larnaca marina and port development is uncertain, as reported by the Greek media. It appears that Alexis Vafeades, the Minister of Transport, Communications and Works, may cancel the contract with Kition Ocean Holdings and Around Town.

In an interview with Stockwatch, the Minister stated, “the contract agreed with the contractor company is very complicated.”

However, if the contract is terminated, there is a provision that requires the management of the port, one of the state’s key operational infrastructures, to be transferred to the Port Authority within 30 days.”

The Minister emphasized, “We have lost all hope that the contractor company plans to renew the €10 million guarantee and move forward with the project’s construction, so we are fulfilling our obligations to protect the public interest.”

Only time will tell how this situation will impact future property sales in the Larnaca district.

Why Is Interest from Overseas Buyers Waning?

One possible reason for the decline in overseas buyers in Paphos and Limassol is the recent changes to the rules for obtaining permanent residency in Cyprus. The new regulations now require applicants to invest a minimum of €300,000 and have a secure annual income from abroad of €50,000, with an additional €15,000 for their spouse and €10,000 for each child.

Parliament is discussing new legislation to replace the inactive Category F application process. The proposed changes would lower the investment threshold to €250,000 and the income requirement to €40,000, plus €10,000 for each dependent.

AKEL has proposed relaxing the law further, suggesting that foreigners be allowed to obtain citizenship without sufficient Greek language knowledge, provided they understand the basic political and social realities of Cyprus.

 

Source: Cyprus Property News

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