Permanent residency visa for Chinese and Russian investors.

  Article By : Marinos Kineyirou|  Published at : Politis Newspaper| 25-11-2012

Marinos Kineyirou: Vice-president of the Cyprus Association of Estate Agent Entrepreneurs, President of the Real Estate Agent Entrepreneurs Association of Larnaca- Famagusta and Property Auctioneer

Marinos kineyirou Manager of Marinos Estate Agencies LTD

Marinos Kineyirou Manager of Marinos Kineyirou Estate Agencies LTD

Permanent residency visa for Chinese and Russian investors.

The rapid process of authorizing migration license to applicants who are nationals of third countries and investing in Cyprus has been considered a positive development. The permanent residency visa by investing more than three hundred thousand Euros, the depositing of title deed or purchase agreement and official receipts to repay the amount of two hundred thousand Euros, at least, has given a significant boost to the property market and created an increased interest to the third countries. This incentive has a positive contribution to revive Cyprus property market, to new jobs, to the state revenues’ increase and the recovery of the economy. The favorable geographical position of Cyprus and the great interest of investors to have access to the European Union is now a dynamic marketplace for Chinese and Russian investors. The turn of the Chinese is characteristic, with a great interest in buying property in Cyprus mainly because Malta has set boundaries, but also due to the incentives given.

The high demand that real estates had a few years ago because of the easy access to liquidity offered by banks for both commercial and residential real estates, had jacked up property prices. The current picture is just the opposite since falls in property prices are recorded and sales are disappointing. Information concerning instructions in the Chinese market for overvalued property prices, drawing attention to buyers with the intention of buying property in the Cypriot property market can not pass unnoticed. The aim of the Cyprus Association of Estate Agent Entrepreneurs is those involved in the process of regulation to respond responsibly and quickly, be they public services or professionals involved in attracting buyers and investors from third countries. Attention should be given to Russians and Chinese investors who invest in Cyprus mainly for securing visas as they apparently sold apartments smaller than 100 squares over than 300,000 Euros, especially to Chinese investors.

Many efforts are made to promote real estates in the Chinese market through the internet, in the Chinese language, participating in property exhibitions overseas and direct contact with major investors. There is not only interest for properties but also for the creation of large projects that will be profitable.

Larnaca and the free Famagusta area have received the greatest impact from the economic crisis. Larnaca’s International Airport and the double work of harbor and marina redevelopment are two major advantages to attract foreign investment interest. The prospect of Chinese investment in Larnaca is ideal but the efforts of the responsible registered estate agencies are still in the early stages. Paphos is now in a new era with prospects, counting today dozens property sales to Chinese and property exhibitions in China seem to have played a decisive role with a number of contacts in the Chinese market. However, a characteristic problem, once again in Paphos is selling real estates to Chinese investors with overly inflated prices. Local businessmen are concerned with this situation who does not want to see once again, as with the British investors, the Chinese buyers leaving the local market ratio cheating. After the sales in the Russian market, Limassol presents a number of sales in the Chinese market.

With the real estate purchase by Chinese and Russian investors the construction industry will be stimulated and increase tourist resources in Cyprus.

Despite the positive trend which seems to exist in the real estate market by Chinese investors, the Cyprus Association of Estate Agent Entrepreneurs identifies problems in the existing legislation and the way it works.

It is necessary to put a comprehensive plan for a proper coordination of investments in Cyprus. Public services involved in this process will have to respond responsibly and quickly to their obligations and to ensure with the state’s intervention the protection of Chinese investors. The latter, are often exploited by some entrepreneurs and property businesses in Cyprus, buying a property in unreasonably high prices in their attempt to secure a permanent residency visa, ignoring the declining trend that properties in Cyprus show.

The state should take action to promote the Cyprus property market and inform the Chinese investors by organizing property exhibitions, advertising, approaching big entrepreneurs in China etc. The direct contacts of entrepreneurs of Cyprus made with the Chinese market create problems in the right investment for purchasing real estates in Cyprus since the prices are high.

The Association shall also request the price differential in the residence price purchase from the amount of at least EUR 300,000 in price liberalization so as to present the correct picture of the prices and create the basis of a fair competition by boosting the real estate market; turning from words into practice the already increased interest of third countries.

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