- Funding Programme
- Year
- 2021
Enhancing mass valuation analysis for property taxation in Cyprus
The project aimed to provide technical support to the Ministry of Interior of Cyprus for upgrading the methodological framework of mass appraisals, reviewing the organisational structure of the general valuation branch as well as improving the system for issuance and transfer of title deeds.
Context
Efficient property valuation is vital for fiscal policies and a functional property market. Cyprus mandates a mass valuation every three years for taxation, facing challenges due to market complexity, especially in relation to commercial properties, and limited expertise in mass appraisals. Organizational structures and processes need improvement to align with international standards. Better procedures for title deed issuance and transfer are necessary, addressing delays caused by compliance issues with building permits and unfinished constructions. In this context, Cyprus requested support to enhance its property valuation system, ensuring accuracy, efficiency, and compliance with international best practices.
Support delivered
The project delivered the following outputs:
- Recommendations on improving the issuance of title deeds
- Support on geographical analysis, notably through a strategic plan for developing a Key Address Register
- Recommendations on the reorganisation of the general valuation branch
- Review of commercial property valuation methodology
- Guidance for building a Transaction and Rental based Index
Results achieved
The project enhanced the capacity of the Department of Lands and Surveys of the Ministry of Interior to undertake mass property valuation. Streamlined title deed issuance fosters quicker property transactions and investor confidence. Implementation of the Key Address Register enhances spatial data management for improved urban planning. Refinement of valuation methods and the creation of a Transaction and Rental based Index ensure fairer taxation, encourage investment, and foster a more stable real estate market. Over the longer-term, the support is expected to contribute towards more efficient and effective mass valuation for property taxation purposes to support the optimization of central and local government finance.
More about the project
You can read the final report here: