11.02.2023
I wonder what the future holds for real estate when we have a new president. Based on what the candidates have announced, we can make some assumptions about how property in Cyprus will develop depending on how things unfold.
My understanding of what policy they will pursue on this issue is as follows.
Andreas Mavroyannis is supported primarily by the Communist Party, although he is not a member of it. He promises to tax real estate, especially on undeveloped land, so that more building land is thrown onto the market, increasing application and lowering selling prices.
This has been my idea for the last 15 years, but it is the most difficult goal to achieve and implement. A similar proposal was made to the chamber earlier, but it was rejected. This requires a lot of work.
The main owners of undeveloped land that will be affected are the church, as well as international foundations that have purchased land for resale. The latter in particular will make it difficult to sell the property, as the cost of the tax is likely to be added to the sale prices.
As for the position of Nikos Christodoulides, it is difficult to understand what it is, since he did not express it clearly. He is supported by parties with a mixture of ideologies, from far right to socialist, centrist and others, so it is difficult for me to see how he will satisfy the policies of these parties.
Whoever wins will not have a majority in the House of Representatives. Thus, it will make it difficult to approve their policy. During the presidency of Nikos Anastasiadis, Disi needed a lot of intrigue and support to get the proposed bills approved. Given the tax breaks proposed in the past, the House of Representatives will not support higher property taxes.
It is strange that organized structures such as the business association (Keve), the association of employers (OEB), the association of developers and others, did not comment on any of the candidates.
Looking at the Cypriot political system, reaching an initial agreement is one thing, but implementing it is another matter entirely. The issue materializes three to six months after the end of the elections.
