One wonders what will be in store for us regarding real estate’s future as we get a new president. Based on what the candidates have announced so far, we can make some guesses as to how real estate in Cyprus will develop depending on how things unfold.
My understanding of where they stand and what policy they will have on the subject is as follows.
Andreas Mavroyiannis is supported primarily by the left wing, be it that he is not a member of it. He promises the taxation of real estate, especially regarding undeveloped land, so that more land for development is released into the market, thus increasing apply and reducing sales prices.
This has been my thinking for the last 15 years, but it is a most difficult goal to achieve and implement. A similar proposal was submitted to the House before, but it was turned down. A lot of work is needed for this to happen.
The main owners of undeveloped land who will be affected include the Church, as well as international funds, who have acquired land property for resale. The latter in particular will be making the sale of real estate more difficult, since the cost of tax will most likely be added to the sales prices.
Regarding the stance of Nikos Christodoulides, it is difficult to understand what it is, since he has not been clear about it. He is supported by parties with a mixture of ideologies, ranging from far right to socialist, centre parties and others, so it is difficult for me to understand how he will satisfy the policies of these parties.
Whoever wins will not have a majority at the House. So, this will make it difficult to get their policies approved. During the presidency of Nicos Anastasiades, it took a lot of scheming and support from Disy to get proposed bills approved. Bearing in mind the tax reliefs proposed in the past, it would seem the House will not back an increase in real estate taxes.
It is odd is that organised bodies, such as the business association (Keve), the employers’ association (OEB), the developers’ association and others have not commented on either of the candidates.
Looking at the Cyprus political system, achieving an initial agreement is one thing, but implementing it is another ball game altogether. The issue will materialise three to six months after the conclusion of the elections.
Antonis Loizou & Associates EPE – Real Estate Valuers, Estate Agents & Property Consultants, www.aloizou.com.cy, [email protected]