Real estate has always been a favourite target for high net worth individuals but sometimes finding the right place to buy can be difficult.
Like most other European countries, the Cyprus economy suffered from the effects of the economic recessions in 2008 and 2013. Unlike many other EU member states though, Cyprus was quick to come out of recession and the island’s economy has recovered spectacular
So successful was the reverse that Cyprus didn’t even need all the funds promised from the European Stability Mechanism. Close to €3 billion from the ESM was never used since the island’s finances were better than expected over the course of the programme.
Cyprus is now in its 15th consecutive quarter of positive economic growth. The average annual increase in the gross domestic product (GDP) is just under 4% and all the signs are pointing to continuing growth which will have more positive effects on the real estate markets.
The country’s banking and financial services sectors have seen spectacular growth in recent years. Foreign investment is a major part of this growth as more and more companies begin operations on the island, opening the door to European markets.
The oil and gas sectors also have huge potential for the future. The latest good news for Cyprus came from US oil giant ExxonMobil who in February, announced the discovery of an estimated 8 trillion cubic feet of natural gas in the country’s Exclusive Economic Zone (EZZ).
All this has been welcome news for the real estate market with demand for high-end properties rising 45% over the last 24 months.
The RICS (Royal Institution of Chartered Surveyors) Cyprus Property Price Index, shows the average price of residential apartments on the island has increased by 17.4% since 2017.
One of the reasons behind this price increase is the growing number of foreign companies moving to Cyprus with large numbers of executives relocating to the island.
This is pushing the high-end residential market even higher with a 45% increase in demand since 2017, particularly in the coastal resort of Limassol where the market for rental properties is high with demand higher than supply.
Many new developments like the Limassol Marina, Limassol Casino, two new 5-Star hotels and the City of Dreams Mediterranean resort have all helped increase demand for real estate, especially at the top end of the market.
Quality of life isn’t the only reason investors from around the world are making Cyprus their home. Like most other European Union countries, Cyprus operates a CBI (Citizenship by Investment) programme.
Under the conditions of the programme, citizens of countries outside the European Union receive Cypriot citizenship after investing in real estate on the island.
Looking for the perfect investment property in Cyprus? We can help.
With many years of experience in the Cyprus real estate market, we’re in an ideal position to help you in your search for the perfect property. We’ve helped hundreds of investors make Cyprus their home in the sun and we can do the same for you.
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