Cyprus real estate valuations: new legislation proposed

The Real Estate Registration Board restates the distinction that exists between market value assessments carried out by the Department of Real Estate and general property valuations for tax purposes. There is still a common misperception among property owners and potential purchasers in spite of numerous explanations from reputable organisations such as the Department of Cadastre and Land Surveying and the Board of Registration of Real Estate Agents.

This misunderstanding not only makes it more difficult to make well-informed decisions, but it also decreases the smooth running of Cyprus's real estate market. In light of this, the Council is pleased that the Council of Ministers has recently approved a measure and that it has now been submitted to Parliament. A major modification is suggested by this bill: property valuations, which were previously done every three years, would now be done every five years.

The Real Estate Registration Board acknowledges this legislative change that modifies section 69 of the Real Property (Possession, Registration, and Valuation) Act. In addition to streamlining administrative procedures, it tries to guarantee that values appropriately represent the state of the market.

This opinion is repeated by Marinos Keynegirou, President of the Board of Registration of Real Estate Agents, who emphasises the needlessness of the three-year assessment process as it is. He draws attention to how little property values have changed in such a short amount of time, which makes it impossible to justify the Department of Cadastre and Land Surveying's increasing workload.

Furthermore, in order to provide for flexibility in reaction to shifting market conditions, the proposed measure gives the Council of Ministers the ability to order valuations sooner if required. In view of these events, the Board states that it is satisfied that the measure was approved by the Council of Ministers and is now on its way to Parliament for more discussion and eventual implementation.