The Central Bank of Cyprus has moved again in an effort to curb the surge in home loans. In October last year the bank reduced the Loan to Value (LTV) on buying a property in Cyprus from 70% maximum to 60% maximum, meaning buyers need to have or find from other sources a deposit of 40% of the valuation plus taxes.
In a new measure non-residents planning to buy a property in Cypruswith the intention of making it their permanent home are now required to provide evidence that they will live in the property for at least 183 days per year. Clearly, for those who are not already permanent residents of Cyprus, this condition will be difficult, if not impossible, to meet.How these new measures will effect the Cyprusproperty market is to soon to tell, as overall the measures do favour and therefore encourage potential resident Cypriot buyers to enter the market and therefore it quite likely that supply and demand will remain in balance.
