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The Cyprus Real Estate Market and the shade of the Economic Crisis |
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The Cyprus Real Estate Market and the shade of the Economic Crisis
The Cyprus real estate and property market remains firm despite the global economic crisis, but there is a need for urgent measures to be introduced by the government in order to ensure future stability, improvement and growth. The major problem in the property sector of newly constructed and off-plan properties has been the imposition of the 15% VAT on property since 2004, which has lead to a dramatic increase in the prices and generated millions in added revenue for the Republic of Cyprus in the form of taxation. Thus, the Purchase of immovable property though property Auctions does not entail any taxation in the form of VAT, since all the properties are Re-Sales.
The growth of the real estate sector has been further hindered by the red tape procedures, and the imposition of VAT on land purchases in 2009 will provide more dilemmas for the real estate industry. The Ministry of Finance in its revised budget calculations has assumed that the revenue from the property sector would decline by 50% or revert back to the year 2006 levels.
The Economic growth in Cyprus has held firm over the course of 2008 with the International Monetary Fund expecting an expansion of around 3,4% in 2008 and 2,8 in the year 2009. According to Financial Analysts, the Cyprus Economy is expected to continue expanding into 2009 at the rate of 2,8%. Notwithstanding the global economic situation, economic growth is projected at 3,7%. Inflation is expected to be between 2% - 3% and public debt is expected to decline to 45%. Despite the expanding economy, the investment market will inevitably slow down but remain secure.
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A Professional Property Service thriving in an Unstable Economy |
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A Professional Property Service thriving in an Unstable Economy
Global Property and Fine Art Auctions have thrived in the last few months despite the general financial crisis, showing that Auctions are immune from tough economic failures.
Selling or purchasing by Auction has, for centuries, been one of the most efficient methods for capital growth. Prospective purchasers who hold Capital and Property Investors can benefit from Property Auctions in times when the economy is unstable, since they can invest their funds and capital in the most secure way, that of real estate.
The expertise of Professional Auctioneers in choosing the eligible properties in all aspects to be sold on Auction and the assessment of the reserve prices is of prime importance for the conduct of the Auction and knowledge of the property market can have a dramatic effect on the success of each Auction. This is one of the major aspects that the Auction Team of Harrison Property Auctioneers (Cyprus) Ltd advances in offering its professional services to clients and investors. The Legal Team of Harrison Property Auctioneers (Cyprus) Ltd is comprised of Professional Lawyers holding a professional practicing license in Cyprus and has been appointed to be mainly responsible for carefully examining the legal status and for performing all the necessary professional searches at the relevant authorities for each property to be sold on Auction, thus safeguarding each potential purchaser from any risk associated with the legal status of each property. Furthermore, they can offer legal professional services to clients ensuring that the Auction Rules and Procedures are adhered to by all parties, making the Auction procedure a very pleasant experience.
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