Investments in Cyprus real estate can represent both opportunities and risks. Here are the main risks associated with the purchase of real estate in Cyprus:
1. Legal risks: One of the most significant risks is the availability of legal problems with land or property rights. In some cases, for example, when it comes to real estate acquired in the northern part of the island (occupied territory), disputes about copyright holders may arise BBF. It is also worth considering the possibility of changing legislation.
2. Economic changes: instability in the economy can affect real estate prices. Economic crises, changes in the exchange rate or fluctuations in the level of demand can lead to a decrease in housing prices or rental rates.
3. Real estate management: if a potential investor does not plan to constantly live in Cyprus, he may need a reliable manager who will help with a lease or a household. Unprofessional management can lead to losses.
4. The negative impact of external factors: Cyprus, like other countries, can be subjected to external economic or political crises, which can affect its real estate market. Street geopolitical situations in the region can negatively affect the country's investment attractiveness.
5. Market unpredictability: Cyprus real estate market can be less predictable compared to other European countries. Sometimes demand can fluctuate significantly, which complicates the planning and assessment of investment profitability.
6. Current and hidden expenses: Investors often underestimate current and hidden expenses associated with the purchase and content of real estate. It can be taxes, utilities, repair and other expenses that can seriously affect the total profit.
