Implications of Accession to EU

From May 2004, the restrictions on real estate purchases were lifted in accord to the EU directions. This implies that property purchases by EU citizens will be free of restrictions by May 2009. 

In addition, EU citizens will not require a work permit. This suggests that the so far untapped investment market and the younger generation groups will invest in Cyprus both in terms of work and investment coupled with work (e.g. a pottery, a pub, a restaurant etc for the EU citizen to work). Such a development is expected to increase demand of real estate sharply with an analogous reflection on property prices.

However, the European Commission proposed to the 15 EU Member State that those candidate countries who wish to limit the acquisition of agricultural land and secondary residences by other EU national do so during a period of 7 and 5 years respectively after their accession to the European Union. (However, a review should take place after 3 years to determine whether this transitional period can be shortened or even lifted).

A rough estimation is that beach and prime location property will double in price upon joining the EU, whereas the remaining properties are expected to increase in prices by approximately 50% then within 2 to 3 years by approximately 100%.  Inland popular areas will increase by approximately 20% to 50%. There have already been signs of this increase over the last 2 years with Paphos increasing 50%, Limassol and Famagusta Regions by 30% and Larnaca beach area by 35%.