On Thursday, June 30, the Land Department of Cyprus released fresh data on the real estate prices on the island.
According to the report, the department checked 1,660,048 units, which is by 1.5% more than in 2018.
1,093,495 units accounted for land and construction sites, and 566,553 – for apartments, maisonettes, shops.
The total value of the assessed real estate exceeded 186 billion euros, which is about 4 billion euros more than in 2018. The average cost of land remained basically the same as in 2018, in some cases even a drop in prices was recorded. At the same time, the cost of residential and commercial properties in Cyprus has increased significantly, the prices of apartments and houses jumped the most in the Limassol district.
According to the head of the Cyprus Land Department Elikkos Ilia, this is primarily due to the sharp rise in the price of building materials in the country.
The publication of the general assessment is the basis for the transparency of the Cyprus real estate market, gives an idea of the market value and profitability of housing in the country, directs potential sellers and buyers, as well as investors in this important sector of the economy," Ilia said.
The head of the Land Department also stressed that the value of real estate indicated in the new report of the department is not the market value of the units. On the contrary, the overall assessment is generalized, carried out en masse without taking into account the special characteristics of each unit of real estate, instead focusing on groups of properties with similar characteristics.
The market value is the price offered at a certain time in a free, competitive and active market, provided that the parties to the sale are well informed about all the details of the transaction, – said Ilia.
The comprehensive assessment of real estate in Cyprus was first introduced on January 1, 2018, after it became known that about 200 thousand objects were not included in the register of the Land Department during previous inspections.
At the same time, the state treasury missed millions of euros in the form of unpaid property tax. To end the confusion, a new audit system was created in Cyprus, and satellite images of the area were used to register the property.
Currently, real estate is re-registered and revalued based on market value every three years. However, Ilia stated that the plans of the Land Department to increase this period to five years, since there are usually no significant fluctuations in the real estate sector in three years, and the costs of revaluation are very tangible for the treasury of Cyprus.
He also noted that if the owner does not agree with the results of the new assessment of the building or land plot belonging to them, they can apply to the Land Department with a request to conduct a new revaluation. They can view the results of the department's work and, in particular, the assessment of a specific object on the website - portal.dls.moi.gov.cy. The owners can send a request for revaluation by e-mail until the end of 2022.
Reference information can be obtained by calling 17100 (+35722804900 for calls from abroad).
Note that due to the fact that since 2017, the property tax on the territory of Cyprus has been abolished, property valuation is now used exclusively for calculating taxes on the sale and purchase of real estate, as well as municipal taxes for garbage collection and maintenance of wastewater and sewerage systems.
Registration and revaluation of real estate objects taking into account their market value is one of the requirements of the troika of international creditors (the European Central Bank, the European Commission and the International Monetary Fund), compliance with which allows Cyprus to receive loans if necessary.
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